Before putting your house on the market, here are some
questions you should ask and some answers you should have.
How much should I ask for my home?
Realistically priced houses sell faster
When Realtors have shown an over-priced property repeatedly and encountered resistance to the price, the home becomes shopworn through overexposure. As the listings ages, Realtors may opt to show their buyers newer listings where they have not experienced market rejection. Many sellers have learned, to their dismay, that if you overprice your house, you are more likely to end up slashing the price to renew interest in your property or failing to sell.
The best way to arrive at a market value price
If you are truly motivated to sell, interview Realtors, the professionals in your community. A Realtor will present homes that have sold in the area, known as comparable sales or comps. The agent will compare the features and benefits of the comps with the amenities in your home and assign a plus or minus value to each difference in features or benefits to develop an estimated sales price. Realtors have a remarkable record of listing properties at or near the final sales price due to their daily working knowledge of the product, homes like yours, and the market, the community in which it is located.
Avoid the “wiggle room” temptation
Many sellers have past experiences with listing homes tens of thousands of dollars above the eventual sales price. They want to get the most money for their property and list high thinking that they have thousands of dollars to nogotiate with in striking a deal. Consider listing very close to your sales price to attract more offers and then negotiating in smaller increments toward an eventaul sale price. Studies have shown that the best offers are made in the first month, so don't hold out too long for “top dollar.”
Don't be offended by a low-ball offer
A sale is accomplished through practicing the art of negotiation. If a buyer initially offers a price, which is considerably below the list price, consider it a sincere offer to negotiate a sales contract on your property. Your Realtor will help you structure a counter-offer that indicates your willingness to give a little if the buyer is willing and able to come up to a price that more truly reflects the current market value. Many transaction today have multiple counter offers traded back and forth until an agreement is struck. It's part of the process.
Another price check on property
Most buyers will obtain a loan for a portion of the purchase price. If you overprice the property, and the buyer fell in love with the home and paid too much, the buyer may not be able to obtain the anticipated loan amount. The lender will appraise the property and offer to loan a portion of the marketing value. If the property does not appraise high enough to warrant the loan amount specified in the purchase agreement, both parties may need to compromise ( Seller: lower sales prices; Buyer: increase down payment/equity) to complete the sale.
Other options
You may hire a professional appraiser who, for a fee, will recommend a figure based on recent sales in your area. Make sure a professional association such as the American Institute of Real Estate Appraisers certifies the appraiser.
How long will it take to sell?
In a “seller's market,” which occurs when interest rates are reasonable and the supply of available homes is limited, you can expect to sell your house quickly - often within weeks in neighorhoods where houses are in demand and short supply. When there are fewer buyers and more inventory (homes for sales), the buyer activity is slower. In a slow market, you may expect to wait two or more months before finding the right prospect even when your house is priced right.
What about advertising?
A large portion of home sales are accomplished through the cooperative marketing of the listing agent and hundreds or thousands of Realtors who have access to the property through the TEMPO Multiple Listing Service (MLS) and internet web sites. Some national firms attribute over 50 percent of home sales to the MLS and other Realtors. A prospective buyer might also learn of your home by driving by, surfing the web, or reading the classified and display ads in local newpapers. Here again, it pays to work with a Realtor. They often have contracted advertising rates that allow for larger ads and more frequent placement. They also know which newspaper bring the most response for a specific community Realtors can list your property on a number of well-traveled web sites including http://www.living.com and http:// sucasa.com from the California Association of Realtors and http:// realtor.com from the National Association. Advertising is part of the cost of doing business a Realtor absorbs when marketing your property.
Should I make any improvements to the
property for a quick sale?
Yes, but don't go overboard. A thorough cleaning from top to bottom will assure your home is presented in the best condition. Consider hiring a cleaning service to clean and polish: windows, floors, window coverings, light fixtures, pictures, etc. You will want to shampoo carpeting unless it is damaged or stained. Less is more when showing property, so remove all but essential firniture and knickknacks to open up the space to it's fullest potenial. Fresh paint is attractive if you stick with soft white or neutral colors and have a professional finished product. However, paint spatters on windowpanes and floors has a negative impact. Consider painting the outside of the house to create a great first impression but new carpets , scraping floors, and other major improvements are risky. Your real estate agent knows what is best for your neighborhood and can make meaningful suggestions on what to fix for the best results.
Rick Ungar is a Certified Distressed Property Expert, solving the foreclosure issue one homeowner at a time. Contact us today to learn about the best options to preserve your credit and buy again soon.
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IMPORTANT NOTICE:
Casa Bella Realty Services, Inc. is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan. If you stop paying your mortgage, you could lose your home and damage your credit rating.
Rick Ungar is a Certified Distressed Property Expert, solving the foreclosure issue one homeowner at a time. Contact us today to learn about the best options to preserve your credit and buy again soon.
