Top 5 Tips To Know When Selling Your Home! Share
September 1, 2014
1. Price - The most important factor to selling your home is to price it right! A price set to high will not attract buyers and will not sell! Period! Today's buyers are savvy and know when a home is priced to sell, especially in the neighborhoods they are looking in. Price your home right at the beginning and you will end up with more money, instead of having to start chasing the market down with price reductions later. Remember Distress Properties, Foreclosures and REO all play a part when you are pricing your home right. Of Course, there are other factors too: such as location and condition! A seasoned Realtor can help advice you on these.
THREE COMMON MISTAKES TO AVOID
A. Pricing your home based on the list price of other properties: This is the probably the number one mistake that sellers make. they look at other homes listed in their neighborhood and list their home based on those prices. That is a big " no-no". To correctly price a home you must look at the "comparable sales", which are homes that are actually sold. while properties are selling (going into escrow) they might not be closing because of the tough financial climate. Appraisers are only looking at homes that have sold in the last 60-90 days, so the appraisal value can be a huge issue. A home that is worth one price going into contract might be worth less when escrow actually closes 45-60 days later. Appraisers are aware of this and often set their values much more conservatively than before. to obtain more accurate sales data a Realtor can prepare a competitive market analysis (CMA) for you, which is a report based on the homes listed, pending and sold in the neighborhood.
B. Pricing your home on what you paid for the property: This is another trap that many sellers fall into. they believe that if they paid 'X' for the property two years ago then they should see the property for 'Y'. this is based on the common fallacy that they should at least break even on their investment. However, in today's market that doesn't always work. Many people believe that the agent and sellers determine the price at which the property will sell. In truth, a property will sell at what a buyer is willing to pay for it and what the sellers are willing to sell it at. The price you pay for a property really has no bearing on what a buyer will pay. However, it can make a difference in terms of tax liability and other issues, so as a seller you should talk to your professional tax accountant.
C. Putting a higher value on your home improvements or upgrades: Many sellers believe that their home improvements or upgrades have increased the house's value dramatically. Yes, some improvements such as a new kitchen, baths or adding square footage increase the value. While most improvements will make your property more saleable, they do not always add to the value. Remember, if you over improved your property by making your home the largest on the block you probably will not recoup that money.
2. Location: The location of your property can add value depending upon what neighborhood and school district you are in. Families with school age children make a desirable school district a priority. Being in a highly sought out neighborhood will increase the value of the property when inventory in that area is low. The same goes for properties in walkable neighborhoods as well.
3. Curb Appeal: You only have one chance to make a first impression! Dont waist it! Make sure your home's landscaping is pristine, that bright colorful flowers are planted, and the front door is freshly painted. This will give a buyer a great first impression and tell him/her that the house is well taken care of. No matter how gorgeous the interior is, if you cannot get buyers to walk through your front door, what's the point? It is important to make your home welcoming. Don't forget to clean out your gutters and make sure your outdoor lighitng is working properly. There is nothing worse than driving up to a home that is full of weeds, dead plants, and peeling paint. This is your welcome mat. Every Buyer wants to pull up to a home that is nicely painted and is beautifully landscaped.
4. Condition: The most important thing to do is to De-Clutter your home! Put your personal photos away, otherwise it is hard for any buyer to visualize himself/herself living in your home. It's time to clean out your closets, give away old clothes, to make the closets look bigger. By removing half of your things from your closets then neatly organizing the rest, the buyer will have an impression of roomy closets. Throw away piles of magazines you've been saving. Get rid of oversized furniture, and all the junk in your garage. New carpet and paint: these simple changes do wonders! There is nothing better then for a home buyer to walk into a home and smell fresh paint and feel new carpet! Those two aromas alone make a buyer want the house more. Remember you live in your home one way, but to sell it is another story. I also recommend using a Home Stager as they can look at your home with an un-biased eye and see just what will make your home more appealing to a buyer. A Stager can help you with de-cluttering and making awkward space make sense. Having the house staged generally leads to a faster sell!
5. Timing: Time is a sellers enemy. As a sesoned La Jolla Realtor I know the market is full of buzz with anticipation and excitement for new listings. It all begins with the first brokers tour (or Caravan) to show off the house to other agents and their buyers. Sellers need to realize it is during the first three weeks "the golden time" on the market that the home as the most activity. If there have been no showings after the broker's caravan or no offers within the "golden time" then the sale price is wrong. It is my job as the Realtor to educate sellers of the importance of those first three weeks. What begins as lots of excited agents will become yestersdays news if the house is not presented with the right price, location, curb appeal and decor.
One last bonus tip: DISCLOSE! If information is not clearly black or white, but is somewhere in a gray zone: DISCLOSE! Most litigation involving real estate transactions happens when the seller failed to disclose an important fact or a fact that they did not think was necessary to disclose. If a buyer finds out about an issue (such as: a past pipe leak, drainage issues, death on a property (with in three years), or unpermitted rooms) after the sale closes the seller is asking for trouble.
These are just a few tips in getting your home sold. If you want additional information about selling your home, text or call me at 619-980-2738 or email me at MichelleRSilverman@gmail.com.