Your home will attract the greatest interest in its first two weeks on the market. This happens because Realtors maintain an inventory of active buyers. Initially the Realtor will show a potential buyer approximately anywhere from 3 to 10 homes that are well priced, in good condition, in the best location, to educate the buyer or initiate an offer. After this the buyer usually looks at the newest or hottest properties coming onto the market.
FACTORS TO CONSIDER WHEN MOVING:
1. Condition of Your Property
Buyers today are selecting homes as much on condition as they are on price.
It is important that the initial exposure of your home to the market result in your home looking the best it can look.
2. Learn the Market
It is important that your home be priced competitively within the range of homes recently sold and presently up for sale in your area.
Be objective: We all believe that our home is the "best on the block".
Value Trends in the Market: Prices in the real estate market rise and fall over time.
A rising market may "catch" the home and it will sell. However, in a declining market, pricing is critical since the market won't catch the price within a reasonable time. Consult with your Realtor to learn the current market trends when making your pricing decision.
Remember that he value of a property is not determined by the cost invested in a property, but by the value derived from it. A buyer will not pay more for your home because you invested a lot in improvements, if there is a similar house for less down the street.
3. Selection of a Realtor
Base your decision on competence, services and the Marketing Plan a Realtor tailors to sell your home.
Never select a Realtor based on price. One of the greatest mistakes owners make today is to interview 2 to 3 Realtors and list their home with the agent that quotes them the highest price. Despite what some realtors may advertise, a Realtor has no control over your local market conditions. The best Realtors have the competence and confidence to tell you the truth about the market. The wrong choice can cost you time and money.
USING COMPETITIVE MARKET ANALYSIS TO DETERMINE PRICE
To help you sell your home for the most amount of money in the current market conditions. There are 3 categories of homes in today's market:
Unrealistic Price Up to 35% of all homes put on the market never sell. The prices at which these homes expired represent the "out of reach" price. If you price your home there, then yours will also expire.
Listings Currently For Sale
Up to 85% of all homes currently listed for sale never receive an offer. To sell a home there must be value in relation to homes in your price range. If the asking prices on these homes are too high, they will not be sought after in the market.
These are actual sale prices and are your best evidence on which to base your pricing decision. Assuming homes are similar to yours, you should be able to attain similar prices. It depends on whether you are in a rising or declining market.
How do Buyers Select Homes to Purchase?
Buyers give their Realtors a price range that's affordable to them. Realtors find price range using the MLS computer. If you price your home above its value range, the right buyer for your home may not be informed by their Realtor that it is available
BENEFITS TO ACCURATE PRICING
Attracts Higher Offers: When a home is priced correctly, buyers are less likely to make low offers, out of fear of losing a good home.
Less Inconvenience: If you know what's involved in moving, you know the energy it takes to prepare for showings; keep the home clean, make child and pet care arrangements, etc. Proper pricing reduces this!
Increased Salesperson Response: When salespeople are excited about a home and its price, they make special efforts to contact all their potential buyers.
Exposure to More Prospects: At market value, you open your home up to more people who can afford the price.
Better Response from Advertising & Sign Calls: Ad calls and sign calls to Realtors turn into showings, maximizing advertising efforts so price is not a deterrent.
Means More Money to You: If a home is price correctly, the excitement of the market produces higher sale prices. You NET MORE both in terms of actual sale price and in less carrying costs.
Occasionally, one can see "For Sale By Owner" signs, and some owners think that selling their own home will not only save them money, but believe they have an advantage over the sellers that have their home listed by a reputable Real Estate sales professional. Before you decide to take on this very important and legally complicated process…remember not even most Real Estate Lawyer's recommend selling your own home yourself in today's market. Here are a few of the reasons why:
1. You are limiting your exposure to potential buyers (less than 10% of what a good real estate broker will generate) which theoretically means your home will take ten to fifteen times longer to sell on the market.
2. The longer a home is on the market the lower the selling price is. Why? Because most buyers think that if the home has not sold after this long... there must be something wrong with the home.
3. The selling/buying process begins AFTER the buyer leaves your home. Most sellers think that all it takes is for someone to see their home, fall in love with the great decor... and the offer automatically will follow. Remember that the buying process begins after they leave your home. If a real estate sales representative does not represent the buyer, and they are looking on their own…they usually leave the home and start to talk themselves out of the buying process. Real estate professionals are trained on how to overcome buyers remorse--a very common occurrence.
4. Because of the limited exposure you will very likely end up with a lower selling price. Remember, in order to generate the highest price possible for your home… selling means exposure. You need the maximum exposure possible, to generate the highest price possible.
5. Most buyers find it extremely awkward to negotiate or even to talk directly with sellers and therefore avoid FSBO properties.
6. Lack of negotiating experience and lack of pertinent information often will result in a lower selling price, or worse yet, a bungled contract and possible lawsuits.
7. The majority of qualified buyers are working with experienced real estate professionals.
8. Many serious buyers will pass by a FSBO home merely because they recognize that it is not in the real estate mainstream, this can some times make them wary.
9. As most local buyers now retain an experienced real estate sales person to represent them as their buyer-agency, you will probably be negotiating against an experienced professional.
10. Expected savings in broker's fees will also be greatly reduced if you offer a selling commission to entice real estate sales representatives to bring potential buyers.
11. If you are planning to use a Lawyer to help you negotiate the offer, then your lawyer's fees will be considerably higher.
12. Only real estate sales representatives have access to the up-to-date market information. News reports cannot approach the timeliness or specificity available to real estate sales people. Further, real estate sales representatives are involved in home sales much more frequently than the average homeowner is. This familiarity leads to a degree of expertise that provides an edge on negotiating and successful selling.
13. You only pay the commission to the real estate broker, if they successfully sell your home at the price you are happy with.
14. Accepting an offer is one thing, ensuring a safe and successful closing is quite another. Real estate transactions usually always have problems on closing. At times, expecting the Buyers and Sellers Lawyer's to fight it out or resolve the problems, can sometimes mean the deal is lost. This is the time that your experienced real estate professional, can be the most important. Your Real Estate professional can act as a great mediator. Lawyers MUST act only on their client's instructions and are not paid to negotiate.