Realtors contend that well-priced homes sell in any market and any season but home sellers today have to assume a declining market when determining their asking price.
Since you have no control over the declining market, focus on the items you can have control over, the three P’s of home selling: pricing, promotion, positioning. Price it competitively, promote it everywhere it can be posted and position it well through home ‘staging’ principles made famous by Barb Schwarz. Free your home from clutter and claustrophobia before you put it on the market and clean it thoroughly. Staging will create an opportunity for buyers to focus on the home and the architecture instead of your life and hobbies.
The home seller who needs to sell with a certain period of time should structure his home sale with price reductions in mind on a scheduled basis. Some real estate agents push for price cuts after 14 days or 21 days. Most agents will tell you that the first 30 days of the listing is the critical period. After that the listing is ‘stale.’ You don’t want buyers wondering if something is wrong with your house when the only thing wrong is that you priced it too high.
Although many real estate brokers and agents are highly skilled in their knowledge of their local real estate market and can produce solid CMAs (comparative market analysis) and BPOs (broker price opinions), the trained professionals who conduct the most thorough reports are licensed appraisers such as members of American Society of Appraisers.Their web site offers the following tips for maximizing your home sale price:-
Update the paint and carpeting. The best thing you can do to update the look of your house is give the outside and the inside a fresh coat of paint and add new carpet. When in doubt, nothing works better than a fresh coat of white paint. -Give your house curb appeal. If you are going to spend any money on the yard or landscaping, work on the front yard. It is more important to buyers that a home looks good from the street. They can always fix up the backyard later.
-Clean house. Even if you have to put things in storage, clear your rooms and garage of clutter, knickknacks, etc. Sparse and simple are better than clutter and will make your rooms look bigger.
For homeowners who are thinking about selling in the long term, appraisers note that many people put time and money into areas that don’t increase value. For the best bang for your buck, think about the following:-Add square footage. When it comes to your house, nothing will offer a greater return on investment than putting an addition onto your home. -
Build out your garage. You may not think so at first, but your garage is of great interest to buyers. By adding a garage or expanding the garage you have, you will increase the value of your property. -Think before you build that pool. Even though you may love the idea of having a pool, don’t build one thinking of it is an investment. Many buyers don’t want a pool and don’t want the upkeep.
Location, location, location. The best thing you can do to make sure your home sells is to buy in a good location in the first place. When it comes to the value of your home, the location is still the most important factor.The bottom line advice is to sharpen the pencil and do the best you can on your own home pricing to compete with the other sellers. Yesterday’s prices are history so focus on the most recent sales of comparable properties.
Incentives or gimmicks can get you added attention but the value has to be there for the buyer to get excited about your offer to pay closing costs, etc. You might consider offering to pay the mortgage for 3-6 months for the home buyer. That incentive could calm relax the nervous buyer who is fearful of not selling his own home as part of his trade up or downsizing move. You can also offer agent bonus incentives but it can create a conflict for agents who work as buyer’s agents and must put the buyers’ interests first.
Showing posts with label buyer. Show all posts
Showing posts with label buyer. Show all posts
Thursday, May 24, 2007
A Receipt for a Successful Sale
Seven Main Ingredients that Make up a Sell / Purchase
When all of the following ingredients are in agreement…
Location:
To coin the favorite phrase of appraisers: “Location, Location, Location.” The pricing of your property must reflect its location.
Condition:
The upkeep and presentation of your property is crucial to obtain the highest value for your home in any given market at any given time.
Price:
Price is the number one factor in the sale of a home. A property is really only worth what one person is willing to pay another to gain ownership of it. Price must be in direct relationship to the other 4 ingredients and it is the most important of all!
Terms:
The more terms available on your property the more potential purchasers you reach. The pricing of your property must reflect the kinds of terms available to purchase it.
The Market:
I.E. Interest rates, competition, and the economy all make up and influence the state of the Market when you sell your home. The pricing of your property must reflect the current status of the Market.
Creative Financing
Financing can be time consuming and stressful. When the buyer is pre-approved it makes the process run smoothly.
A Good Realtor:
An agent that cares about what your goals are and is willing to work towards that goal of getting the best deal in a timely manner is exactly what you will need.
Setting the best price to list your home is part science, part art. There are several aspects of the home's value we consider when making pricing recommendations.
1. Comparison. Where does your home fit in the marketplace? It should be priced to be competitive with comparable houses in the same area.
2. Negotiation. The price should allow some space to make concessions in order to close the deal.
3. Return. The listing price should be set so you net the most money possible from the sale.
4. Target. Ideally, the price is adjusted to the top of a multiple listing category, so the home's features compare favorably with lower-priced homes in the range. (If it is placed at the bottom of the next higher price grouping, the higher-priced houses will look better and sell more quickly.)
Unfortunately, what you paid for your home is not a factor in determining its market value. Neither is what you would like to get out of the home. Some home improvements you've made may add to the market value, however. Having the house in picture-perfect condition from the first day of the listing may also increase the value of your home. But mostly, these will help you sell faster, and that could mean a sale price close to your asking price.
Don't offer gimmicks; instead, correct defects -- cosmetic and structural -- and price the property right. The biggest incentive you can give a buyer is a well-prepared home that's listed for a realistic price. The listings that are selling in today's market are priced right for the market, they look good and there's no doubt in anyone's mind that the property is available.
Consultation with an accountant and/or attorney is recommended before entering into any financial transaction.
When all of the following ingredients are in agreement…
Location:
To coin the favorite phrase of appraisers: “Location, Location, Location.” The pricing of your property must reflect its location.
Condition:
The upkeep and presentation of your property is crucial to obtain the highest value for your home in any given market at any given time.
Price:
Price is the number one factor in the sale of a home. A property is really only worth what one person is willing to pay another to gain ownership of it. Price must be in direct relationship to the other 4 ingredients and it is the most important of all!
Terms:
The more terms available on your property the more potential purchasers you reach. The pricing of your property must reflect the kinds of terms available to purchase it.
The Market:
I.E. Interest rates, competition, and the economy all make up and influence the state of the Market when you sell your home. The pricing of your property must reflect the current status of the Market.
Creative Financing
Financing can be time consuming and stressful. When the buyer is pre-approved it makes the process run smoothly.
A Good Realtor:
An agent that cares about what your goals are and is willing to work towards that goal of getting the best deal in a timely manner is exactly what you will need.
Setting the best price to list your home is part science, part art. There are several aspects of the home's value we consider when making pricing recommendations.
1. Comparison. Where does your home fit in the marketplace? It should be priced to be competitive with comparable houses in the same area.
2. Negotiation. The price should allow some space to make concessions in order to close the deal.
3. Return. The listing price should be set so you net the most money possible from the sale.
4. Target. Ideally, the price is adjusted to the top of a multiple listing category, so the home's features compare favorably with lower-priced homes in the range. (If it is placed at the bottom of the next higher price grouping, the higher-priced houses will look better and sell more quickly.)
Unfortunately, what you paid for your home is not a factor in determining its market value. Neither is what you would like to get out of the home. Some home improvements you've made may add to the market value, however. Having the house in picture-perfect condition from the first day of the listing may also increase the value of your home. But mostly, these will help you sell faster, and that could mean a sale price close to your asking price.
Don't offer gimmicks; instead, correct defects -- cosmetic and structural -- and price the property right. The biggest incentive you can give a buyer is a well-prepared home that's listed for a realistic price. The listings that are selling in today's market are priced right for the market, they look good and there's no doubt in anyone's mind that the property is available.
Consultation with an accountant and/or attorney is recommended before entering into any financial transaction.
Saturday, May 12, 2007
10 TIPS FOR BUYING OR SELLING REAL ESTATE
In the market to buy or sell real estate? Follow these tips from the people behind the HGTV program "Bought & Sold" to make the process easier.
1. Arranging an open house to attract potential buyers doesn't necessarily work. Nosy neighbors and real estate agents will be attracted to the event but not serious buyers.
2. Despite conventional wisdom, the smell of baking cookies does not make a home more appealing to potential buyers. To enhance the chances of selling a home, ensure that the home always looks and smells good, and is well-lit inside and out.
3. Hire a home-stager to help maximize your furniture and accessories. An expert can help rearrange these items to make each room look more appealing.
4. Flipping real estate is great, but be sure to hire an agent with house-flipping experience. First-timers should start with a smaller project to get familiar with the process.
5. Reduce the asking price if there are no takers within the first month. If selling the home is a top priority, reduce the price substantially. It lets potential buyers know that you are serious about selling.
6. A good listing agent can usually point out property damage, such as termites or asbestos, that could become an inspection problem.
7. Roofs, air-conditioning units, wet basements with drainage problems, and major structural issues such as dry-rotted or cracked support beams, are usually the most costly issues uncovered during home inspections.
8. Many people interview agents to list their home for sale but never consider interviewing them to help them look for a new home. Both endeavors are equally important.
9. Interview several real estate agents before selecting the one for you. It is important to meet with at least three. Don't feel obligated to accept the one that an agency assigns to you.
10. Don't ask your agent for predictions. In a fluctuating real estate market, no one can predict what will happen during the buying and selling process.
1. Arranging an open house to attract potential buyers doesn't necessarily work. Nosy neighbors and real estate agents will be attracted to the event but not serious buyers.
2. Despite conventional wisdom, the smell of baking cookies does not make a home more appealing to potential buyers. To enhance the chances of selling a home, ensure that the home always looks and smells good, and is well-lit inside and out.
3. Hire a home-stager to help maximize your furniture and accessories. An expert can help rearrange these items to make each room look more appealing.
4. Flipping real estate is great, but be sure to hire an agent with house-flipping experience. First-timers should start with a smaller project to get familiar with the process.
5. Reduce the asking price if there are no takers within the first month. If selling the home is a top priority, reduce the price substantially. It lets potential buyers know that you are serious about selling.
6. A good listing agent can usually point out property damage, such as termites or asbestos, that could become an inspection problem.
7. Roofs, air-conditioning units, wet basements with drainage problems, and major structural issues such as dry-rotted or cracked support beams, are usually the most costly issues uncovered during home inspections.
8. Many people interview agents to list their home for sale but never consider interviewing them to help them look for a new home. Both endeavors are equally important.
9. Interview several real estate agents before selecting the one for you. It is important to meet with at least three. Don't feel obligated to accept the one that an agency assigns to you.
10. Don't ask your agent for predictions. In a fluctuating real estate market, no one can predict what will happen during the buying and selling process.
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