Home Selling Tips
Getting the Highest Price in the Shortest Time
Making a Good First Impression
Finding a good real estate agent/broker is essential to enjoying a painless real estate transaction. The saying is “20% of the agents do 80% of the business,” and it is true. The question is how can you find a good real estate agent? The best agent for you doesn’t necessarily work at the largest brokerage, close the most transactions or make the most money. The best agent for you is an experienced professional who will listen to you, conduct himself/herself in an ethical manner, and knows the market .
Here is a list of questions that you should ask if you want to find a good realtor.
Question #1: How will you sell my house?
This question can be broken down into the following: How will you advertise my home and in which markets? How successful is your advertising? Do you use newspaper, real estate magazines, a multiple listing service, the internet?
The realtor should be able to describe a marketing plan to you without much hesitation. They should be able to name publications and list web site addresses that they use regularly.
Question #2: How long have you been a Realtor (or Real Estate Agent)?
You want a realtor who is experienced in all aspects of business: marketing, negotiation, managing the contract, handing any difficulties or issues that may arise and making the buyer and buyer’s agent feel like a winner without compromising the seller’s position and interest.
Question #3: Is the realtor a professional?
Do NOT hire a realtor only because he or she is a friend. You are dealing with your most precious possession and most valuable investment. You must hire someone who handles and manages your money diligently, has integrity, is honest, and most of all believes in customer service. There are few things as stressful as selling your home. It will NOT help your stress level if you are not able to reach your agent in a timely manner or your agent does not put your needs and interests first in all matters.
Question #4: Can you trust your realtor?
You must have professional trust between yourself and your realtor. After all, you will be going into partnership together – since you both will have a vested interest in the sale of your home. Your realtor’s responsibility is: 1) marketing, 2) to have as many people visit your home as possible, and 3) handle all the negotiations and communicate each step of the process. Your responsibility is to take advantage of your realtor’s experience and follow his/her direction on how to stage your house and how to keep your house ready for showing at all times.
Question #5: Is your commission negotiable? (What commission do you expect to pay?)
A typical commission for a full-service agent is between 6 – 7% of the selling price of your home. Be cautious of any realtor who promises you full-service for very low commission. Chances are that they won’t focus the attention you need on the marketing and sale of your home. And remember, you get what you pay for.
If you’re buying a home as well as selling, you might be able to negotiate a lower commission by using the same agent for both the sale of your present house and the purchase of your new home.
Remember that you are the hiring party – that puts you in control! Never sign with a realtor that you don’t trust, no matter how good the deal he or she offers you seems. As in most cases, if it sounds too good to be true, it probably is.
Getting the Highest Price in the Shortest Time:
In order to receive the highest price in the shortest time, you need to know how to market your home. The better you market your home, the more offers you will receive. The more offers you receive, the better your chance to sell your home at the price and terms you want.
The most important factor in marketing your home is to make sure the market will bear your asking price. This means when you decide on the asking price, you have to factor into your decision your home’s value as well as the asking price of the competition (other homes listed for sale in your area). If you are intent on selling your home; you must remember that in order to sell it, you must have realtors willing to show it to potential buyers and potential buyers that are interested in purchasing it. Neither of those things will occur if your asking price is higher than the fair market price.
A second important factor in receiving a higher price in a shorter time is the condition of the property. Your home must look ready to be BOUGHT, not sold. Fix any defects (peeling or faded paint, cracks, stains, etc.). Condition alone may sometimes prompt fast buying decisions. Not only should you fix any defects, but consider upgrading your home by making major repairs and cosmetic improvements before listing. A beautiful looking home can trigger emotional responses that can lead to a financial response.
Another important factor in receiving a higher price in a shorter time is learning how to negotiate the best terms for both parties. Terms are another factor which may be adjusted to attract buyers. If your highest priority is purchase price, then consider what you can offer to the buyer in lieu of a lower purchase price. For example, a buyer might find it much more appealing to pay a higher purchase price but already have any repairs completed upon move-in than paying a lower purchase price and having to deal with the headache of completing repairs himself/herself after they have already moved in. Besides making any home improvements, you could also consider giving the buyer an allowance for repairs, or even offer seller-financing at a lower than market interest rate on a portion of the sale price. Convince them WHY they should be paying the price you have set and they will!
Lastly, get the buzz out about your home. List your house with a producing agent that ensures your house is listed on the MLS and on the internet and as many search engines possible. On your own, get the word out. It should be visible to any passerby, that your house is for sale. Use any and all means at your disposal – whether it be signs, local advertisements, or word of mouth to friends, family, or acquaintances.
Making a Good First Impression:
For a buyer to be interested in your home, you need to show it at its best. A buyer is influenced both visually and emotionally by his/her first impression. A good first impression can influence a buyer enough to result in an offer. In addition, the buyer’s first impression also greatly influences what amount a prospective buyer considers when making an offer.
A negative first impression weighs in just as heavily. Wait to show your property if you are going to have any improvements or repairs completed. Don’t be so afraid that you will miss a prospective buyer that you are willing to show your house at anything other than at its best. You do not want to give buyers the chance to use the negative first impression they received as leverage in negotiations.
It is sometimes hard to separate the personal and emotional ties you have for your home from the value it has as an investment. What you need are objective opinions. Therefore, ask others around you for their opinions of your home. Real Estate Agents, who see houses every day, can give solid advice on anything that might need to be repaired or upgraded. If possible, consider asking architects or landscape designers for their professional opinions. Typically, there are some general repairs that will need to be done – both inside and out. As a seller, you should consider the following:
- Landscaping - Has the front yard been maintained? Are areas of the house visible to the street in good condition?
- Cleaning or Repaving the Driveway - Is your driveway cluttered with toys, tools, trash etc.?
- Painting - Does both the exterior and the interior look like they have been well taken care of?
- Carpeting - Does the carpet have stains? Or does the carpet look old and dirty?
If you know exactly why you are selling, then it is easier for you to set the right plan of action to accomplish that goal or goals.
If you are a seller who needs to close a sale as quickly as possible, then you should know that getting the highest price possible is not one of your higher priorities. It does not mean that you won’t or cannot get the highest price. But, it means that the price should not be the deciding factor. A buyer who can give you a quick closing time should appeal to you much more than a buyer who offers a higher purchase price but also a longer negotiation and closing time.
It’s always good to decide what you will accept as the absolute lowest selling price. This will make it easier to eliminate some of the offers that might be simply offensive or ridiculous. Keep in mind though, you should consider all offers seriously and take into consideration the terms of each offer. However, if you know your bottom line and are strict about it, you can save yourself a lot of time and indecision.
Once you have defined your reasons to sell and set your limits, discuss them with your agent. He/She can then help you set realistic goals. If you decide to list your home on your own instead of using a professional, it is important to remember that you must do a thorough job on researching the current market AND you must receive the proper advice you need in terms of legal issues, etc. If you have no idea as to where to even begin to accomplish those two tasks, or after beginning you realize you don’t have the time to accomplish the two tasks properly; I highly recommend seeking the services of a real estate agent.
The price is the first thing buyers notice about your property. If you set your price too high, then the chance of alienating buyers is high also. You want your house to be taken seriously, The asking price reflects how serious you are about selling your home.
Several factors will contribute to your final decision. First, you should compare your house to others that are on the market. If you use an agent, he/she will provide you with a CMA. The CMA will reflect the following:
- Houses in Your Price Range and Area Sold within the Last Half-Year
- Asking and Selling Prices of Houses in Your Area
- Current Inventory of Houses on the Market
- Features of Each House on the Market
From the CMA, you will find out the difference between the asking price and selling price for all homes sold, the condition of the market, and be able to learn about other houses comparable to yours. Remember that buyers follow trends. If your house fits the criteria for the current market trend, keep this in mind when determining an asking price for your house.
Always be realistic. What is realistic for the market one year, may change the next. Therefore, you must stay current of the market trends and understand that the price that you hoped to sell your home for may not be feasible at that time.
1) Analyze Why You are Selling – If you understand your motives, you will be able to better negotiate and reach the goals that you have set (whether it be a quick sale, high price, or somewhere in the middle).
2) Prepare Your Home for the Buyer – Maximize the strengths of your property and fix any weaknesses. You want the buyer to walk away from your home with an unequivocal positive impression that lasts.
3) Find a Good Real Estate Agent that Understands Your Needs – Make sure that whatever agent you pick is YOUR agent. He/She understands and supports your goals by designing a marketing plan that keeps the focus on your needs. He/She will explain the process as it unfolds honestly and simply before negotiating to your best advantage. Simple. Right?
4) Be Prepared for Negotiation – Learn and understand your buyer’s situation and goals as well as you know your own. What are their motives? Once you understand what their priorities are, you can negotiate more efficiently so that you will succeed in securing a contract and eventual completing the sale.
5) Negotiate for the Best Price and Terms – Learn how to counter offer effectively to maximize your potential profit.
6) Make Certain the Contract is Complete – Be completely honest with your disclosure. You do not want to lose a potential buyer because you were afraid to disclose something (that in all likelihood) will not make a bit of difference to the buyer. Insist that the buyer get his/her own professional inspection. This will protect BOTH you and the buyer.
Since all Real Estate Agents are individuals, it is not surprising that all of them might possibly handle the exact same contract and situation completely different. And in most situations, that is perfectly acceptable. Having said that, there are, of course, some conditions that should apply to any agent you consider using. The most important attribute of an agent is that he/she is well connected to the real estate industry. He/She should know the market and provide information on past sales, current listings, his/her marketing plan, and at least (4) solid references. In addition, the agent you choose should be honest, assertive, and understand your needs and work to accomplish them.
When reading an offer, keep in mind that the ultimate goal is to receive not only the best purchase price but ALSO the best terms. If you focus solely on the price, you may overlook terms that could be either favorable or detrimental to you as a seller.
Some terms that may work in your favor:
- Buyer willing to pay higher-than-market-interest in a second mortgage from partial owner-financing.
- Buyer will pay for most or all of the closing costs.
- Buyer will be responsible for all aspects of any necessary or negotiable repairs.
- Buyer is pre-approved and ready to close in a time that best suits you – quickly.
- Buyer offers cash deal when approved by a separate lender.
When reading through offers, remember to look at the whole package. Allow yourself the time needed to assess what is being offered and if it meets your needs and goals.
A professional home inspection protects both you and the buyer. As a seller, the home inspection report protects not only the buyer from any unknown problems but it also protects you, as the seller, by stating and establishing the actual condition of the property at the time of sale.
A home inspection usually covers the following:
- Plumbing - If there is leakage or clogging
- Roofing - If there is leakage, the extent of deterioration
- Electrical - If there are inadequate circuits or potential fire hazards
- Structural - If there are problems with the underlying foundation or supports
We hope that the above pointers are informative and help you in the Selling Process. Call us with any questions that you might have – regardless of whether you are going to sell your house yourself or whether you are contemplating working with another agent.