Important
Things to Know and Do When Selling Real Estate
By Eric J. Pfeifer
The following principles apply to all successful
real estate transactions. Be informed and your next sale will go smoothly often
resulting in the price you were seeking.
Know Why You Are Selling Your Property, and
Commit to the Process!
Have a clear reason for selling your property.
You may not want to share you motivations completely with anyone, but it will
help you when setting your asking price, and negotiating offers and
contingencies. In any market some homes that are listed for sale just don’t
sell. These expired listings as they are called in the trade can be numerous.
Why? The reason is often simple the seller didn’t have a clear reason for
selling and therefore didn’t commit to the process. Often times these owners
offer their property for sale to “test the market” to see if they can get an
unrealistic price. Unfortunately this usually backfires into a downward spiral.
As a property remains on the market for a long period of time, a stigma can
occur in the mind of a potential buyer. Buyers wonder what is wrong with that
house or condo. Why has it been on the market so long? Each market and property
type is different with respect to the average length of time a listing remains
on the market before closing. If you are serious about selling, go about it the
right way first.
Hire the Right Agent to Sell your Property!
Roughly 90% of all real estate transactions nationwide
involve a professional real estate agent. Unless you are an expert in marketing
real estate, it is in your best interest to hire a licensed professional
realtor. There are many different types of realtors. Some only dabble in real
estate from time to time as needed, while others have a license to benefit
their own transactions. Most people wouldn’t hire a surgeon that dabbles in
surgery from time to time, yet when they’re ready to sell one of their most
valuable possessions, they don’t give it much thought. Find a full time
realtor, one who knows the market because they see it and work with it every
day. When looking for a realtor, ask friends and neighbors for referrals, make
appointments to meet several top real estate agents in your area. Don’t be
afraid to ask a realtor what they are going to do to sell your property. Any
real estate professional welcomes this question. While interviewing a potential
realtor, carefully listen to what they say. Are they being objective, or are
they telling you everything you want to hear based on what you’ve told them? A
realtor should be a source of information and advice, not an echo.
Embrace Technology!
This part is easy. No mater how comfortable you
are with technology, make sure your realtor is, and that they will utilize this
powerful tool to sell your property. Today marketing real estate is more than a
‘for sale” sign, newspaper ads, mailings and the local Multiple Listing
Service. Many buyers are shopping for properties on the internet long before
they arrive in your neighborhood or even your state. Find an agent willing to
place virtual tours and multiple photos of your property on several different
websites. In addition to my personal website, you will find all of my listings
on nine different websites. At any time a visitor to MySanibelRealEstate.com
can view all available properties for sale in Sanibel & Captiva, or
Price it Right from the Start!
While location is the most important feature to
consider when buying a property! Price is the most important consideration when
selling a property. Location is the most important feature to consider when
buying a property! When you are ready to sell your property, you obviously
can’t change the location. Hopefully when you purchased it you remained aware
of the top ten tips when buying any property. Price is now extremely important.
If you have an unrealistic view and set your price too high for the market, you
will have trouble selling. Buyers look at “comps”, this is the trade term for
any similar property with many of the same features. If you are working with a
good realtor, they will be armed with knowledge of the sale prices for all
properties that closely match yours. They will also have all the listings of
properties currently offered for sale in the price range you are considering.
Listen to a professional when setting your asking price. Below are the damages
that occur when your initial price is too high.
- The Property Isn’t Seen By The Right Buyers!
Good realtors are aware of new listings immediately when they come on the
market! They have many buyers that they are working with. If the seller knowingly
overprices their property, it will not be exposed to the right buyers. For
example: A homeowner has been informed that the homes like his, when listed
around $479,000 are selling for $450,000. Instead of listening to the “comps”
the owner decides to ask for $539,000. The owner may be thinking “I’ll just
test the market. I can always lower my price”. Now this new listing sets all
the aggressive realtors in motion. Eager to bring the buyer, realtors consult
in their contacts lists. Continuing with above example, assume a realtor has
buyers in the following price ranges: $400,000 - $450,000, $450,000 -$500,000
and then $500,000- 550,000. The following things happen. Buyers in the lowest
price range probably won’t see or be contacted about this home. They and their
realtor have no way of knowing that seller will consider or possibly expects a
substantially lower offer. Only the sellers listing agent knows that the list
price is wishful thinking. Buyers in the $450,000 – $500,000 price range will
have mixed reactions, if they are shown this house at all. Now for the buyers
that will see this house the most. They are looking in the $500,000 - $550,000
price range … right where this home is priced. This overpriced home will now
pale in comparison to all the realistically priced homes in this price range.
This only makes the seller and the seller’s agent look uninformed and foolish.
- Don’t Drop The Price Too Late!
After on overpriced listing has had several
showings, and no offers, the seller decides to reduce the price. Hopefully they
aren’t too late. Now the home is priced right. Here come some new buyers. Their
reaction if the price reduction is too late will be “Wow, this is a nice home,
but why has it been on the market so long? I wonder what’s wrong with it. I’m
going to keep looking.” This is a hard position to be in as a seller. A good
realtor will help a seller avoid this costly mistake. Be cautious when
interviewing several realtors, of the one that suggests an unrealistic asking
price that isn’t supported by the market with recent “comps”. They might have a
hidden agenda. Some realtors, once they’ve listed a property by gaining the
owners trust and confidence, will then badger the owner to lower their asking
price. They will also tell the owner all the reasons why the price is too high.
Something they should have addressed before they took the listing.
Get Your Home in Show Shape!
This can be overwhelming for some people, but
shouldn’t be. Look at your home or condo through the eyes of a buyer. If you have
a hard time doing this ask a friend to help you, or more importantly ask your
realtor what needs to be done. Buyers want to come into your home and picture
themselves in it. Keep that one thought in mind as you go through each room.
It’s human nature to remember negative things. Avoid giving the buyer any bad
features to remember about your property. Here are some helpful guidelines and
tips to assure that a home shows well and is attractive to a buyer.
- Clean The Property Inside and Out!
If you have a yard, keep it tidy, weeded and trimmed. Try to avoid unusual yard
ornaments, cluttered potted plants, and things hiding under brightly colored
tarps. Focus on the entry into your property. Make it the best it can be. For
the exterior, power wash stained decks, siding, patios, eves, and windows.
Repainting is costly. You may be able to retouch the existing paint as needed.
Inside you should also focus on all the major surfaces. Retouch paint, clean
baseboards, stair treads, clean carpets, windows, and polish all wood surfaces
from floors to cabinets.
- Fix or Replace Things that are Broken!
Unless you are selling your house AS IS, fix the things you know are broken. If
you don’t fix them now, chances are you will have to fix them later. Why risk
having a small detail send a red flag to a potential buyer. For example: If
your front door won’t open without forcing it, a buyer might think there are
several other things wrong with the maintenance of your home. The same goes for
leaking faucets, running toilets, locks that won’t lock, cracked plug
plates…..you know what should fixed or replaced.
- Store the Clutter!
It’s important to understand that I didn’t say get rid of the clutter, just
store it. When faced with a potential move, having to sort through accumulated
possessions can become a time sink. Often the “paralysis of analysis” sets in,
resulting in little progress. Invest in some durable plastic containers and
labels. Fill the containers and store them. If the home doesn’t have room,
place them in a storage facility. Buyers when faced with a property that is
visually cluttered will have a hard time seeing past all your things.
- Organize Closets, Cabinets, Cupboards, and
Shelves!
After storing the clutter, tidy the rest. If your closets are overstuffed with
clothes, or linens clean them up. A buyer will assume there isn’t enough space
in your home for their stuff if there isn’t enough space in your own home for
your stuff. Don’t assume a buyer won’t look somewhere because they will. Buyers
will open cupboards, look under the sink, go in you closets, open shower
curtains, draw the blinds on the windows, and more. Show off the storage space
your home has.
Remove Excess Personal Items and Toiletries!
A home should be a reflection of the homeowner,
unless the home is for sale. This is a tricky and important area to address.
Buyers are trying hard to picture their belongings in your home and themselves
living there. If they can’t see your home because everywhere they look they see
you, your family, your children’s art work, your friends, your awards, and your
trophies, they will have a more difficult time envisioning their dream. Less is
more. All of the above items are great to have and show but in moderation. Pick
and choose then store the rest. The last thing to mention is toiletries. Store
them. This is simple to do. Be ready for a showing each day. For each person in
your household assign a small plastic storage box. When they leave for the day
all their personal items go into the box and placed under the sink or somewhere
out of the way. Nobody wants to look at your toothbrushes, razors, deodorants
or other personal items!
Stage Your Property for
What does it mean to stage a home or condominium
for sale? Staging is simply the process of preparing a property for sale so
that it is visually pleasing to a buyer. In fact there several businesses that
do nothing else but help owners stage their homes for sale. Cleaning, storing,
organizing, and fixing broken items are the first phase of staging. The last phase
of staging is simply the art of placing items and arranging furniture to make
each room more inviting and appealing. Often overlooked, this last step is the
easiest and most fun to accomplish. Think of a home as a product on the store
shelf. Once it is priced right, the packaging must be appealing so that the
buyer will choose it over other similar homes. Here are some tips for staging
each room in your home.
Foyer or Entryway: Fresh flowers or a plant make
a nice welcoming impression. If the home is vacant place a tasteful silk
arrangement in the entry.
Kitchen: The kitchen is the heart of the home.
To help buyers envision enjoying and using your kitchen, have a bowl of fresh
fruit on the counter or table. Try placing a cookbook open on a stand to a cookie
recipe next to a wooden spoon and mixing bowl.
Bathrooms: Place large attractive towels rolled
or stacked near the tub or shower. If you have room arrange lightly scented
candles on a tray near the tub, on the counter or window sill. Remember the
rule of three when decorating. It’s best to use three different sized similar
candles. Try to avoid heavily scented candles or potpourri. A potential buyer
may think that you are trying to hide something.
Living Room or Family Room: Music is wonderful
if played softly in the background and the selection is pleasing. Arrange a
cozy afghan on a comfortable chair or sofa along with an open book or a book
arranged on top. It will create a warm comfortable feel to the room. Be sure
that your furniture is arranged in an inviting manor. Try to avoid placing the
backs of furniture to the main entrance into the room. Mirrors should be hung
to reflect attractive views, not blank walls. Fireplaces, if wood burning,
should be clean and look ready to light. Unused fireplaces look warm when
filled with candles.
Dining Areas: Many buyers love to entertain.
Help them visualize their friends and family gathered in the home by setting
the dining table with attractive place settings, utilizing chargers and
goblets. Place a large bowl of fruit or fresh flowers on the table. For more
casual dining areas, such as breakfast bars, kitchen tables, and patio tables,
set attractive place mats and centerpieces.
Bedrooms: Beds should not be visible from the
entertaining rooms of a home. The buyer wants to feel that each bedroom in a
home is not only cozy and inviting but private. The challenge comes when a home
has bedroom doors that open into entertaining spaces. Try to arrange the
bedroom so that dressers or end tables are viewed when the bedroom door is left
open, and not the bed. If this can’t be done consider a tall well placed plant,
or screen. Several final touches can transform a bedroom from a place to sleep
to a cozy retreat for lounging, reading, or napping. An attractive breakfast tray
with a small bud vase and napkin can be placed on top of the bed. Afghans can
be draped loosely over the foot of the bed or armrest of a comfortable chair
with a book. A small writing desk with stationary and pen is always a nice
touch in a guest room or master bedroom.
Garage or Storage Areas: It’s tempting to throw
all the excess clutter in the garage. Sometimes it can’t be avoided. If you
can’t store the stuff, organize it and make the garage look larger. A fresh
clean coat of paint can do wonders in this often neglected area of the home. If
space allows, create work areas such as garden supplies, household tools,
outdoor toys, etc.
Be Flexible and Ready to Show your Property!
Many showings of a property can occur with
little advanced notice. A good realtor will be ready to accommodate a last
minute showing, and the owner must be equally prepared for their property to be
seen. The best way to accomplish this when living in the home is to create an
exit plan. Checklists can be helpful to verify that rooms are tidy, and
toiletries are stored before leaving. Discuss with your realtor which lights
should be on, music that can be played, and how to address any pets.
Be a Smart Negotiator!
Everything so far has been done correctly, and
now there is a written offer for the property. There is no proven formula to
follow when responding to an offer but some general principles usually apply.
Try to gain as much knowledge about the buyer’s needs and motivations as
possible. For instance if they are doing a 1031 tax exchange they may be under
tight time constraints, and need to buy a property quickly. Did they make a low
offer because they feel a lot of work needs to be done to the property? If at
all possible it’s best to try to negotiate a Win/Win agreement. Unless the
seller is in no hurry or it’s a hot seller’s market, it is always wise to try
to negotiate a reasonable contract once it arrives. A professional real estate
agent will help their seller determine the correct course of action to
accomplish their goal which is to sell their property and be satisfied with the
outcome.
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Eric Pfeifer; http://www.MySanibelRealEstate.com
Realtor, Broker-Associate, CRS, GRI Article Source: http://EzineArticles.com/?expert=Eric__J._Pfeifer |