Sellers Guide

A realistic asking price will help to sell your home quickly and for top dollar. By properly pricing your home you ensure that the gap between the asking and selling price is small and that there will be a greater likelihood of competing offers. Your home will also maintain its 'marketability' for a longer period of time before people start to say... "That home has been for sale forever. What's wrong with it?"

A house that is priced 10% over its actual market value is many times less likely to sell in the initial 30 days of marketing than one priced within 5% of its true value. Not only will an over-priced home take longer to sell, it is also likely to sell for less than it's actual value. This is due to the "discount" often associated with properties that have been on the market for a longer than average time.

It should be pointed out that recommended listing prices are based on historical sales and current market conditions. It is always difficult to walk the fine line between getting the most for a property while at the same time ensuring your asking price is competitive enough to attract serious offers.

How you feel about testing the market will determine how much higher than the current selling prices of similar properties you'll wish to ask for your home. You can always start at a higher price than the market is currently bearing and then, if necessary, reduce your price at a future date. The drawback to this is that it could take longer than normal to sell and you could end up helping to sell other similar homes as they may look comparably less expensive than yours.

This is where the experience and knowledge of a good Real Estate Agent is invaluable. REALTORS® spend a lot of time and energy making sure they know their local market inside and out. They keep their finger on the pulse of the market and have the resources, connections and ability to keep you up-to-date with its constant changes. They know all of the properties currently for sale in your area and are literally your best resource for determining and getting the highest price possible.

The Main Factors That Affect Market Value Are

Location:

• availability of community amenities, such as public transportation, parks, stores, churches and schools
• quality and consistency of neighborhood planning
• future development plans and local zoning

Property:

• style, layout, size, age and quality of construction of the building
• size, shape, privacy and landscaping of the yard

Condition of the Home:

• first appearances
• floor layout
• quality and appearance of fixtures
• general overall condition of main systems (such as roof, furnace, electrical system, central air, etc.)

Comparable Properties:

• the asking and selling prices of comparable neighboring homes
• The best way of establishing an accurate range of value for your property is to have your Real Estate Agent prepare a Comparative Market Analysis (CMA). This will give you a detailed and accurate overview of the current market.

Market Conditions and the Economy:

• number of homes currently on the market
• number of people looking to buy
• the state of the local and national economy
• current mortgage rates

Market Conditions and the Value of Your Home

No matter the condition or desirability of your home, its value will be affected by current market conditions. Here are the various conditions you may encounter and how they will affect you:

Balanced Market:
The number of homes on the market is equal to the number of buyers (supply equals demand). In this market, prices are stable and homes sell within a reasonable period of time. It is a calm atmosphere with buyers having a satisfactory number of homes from which to choose.

Seller's Market:
The number of buyers exceeds the number of homes on the market (demand greater than supply). In this market prices are increasing and homes sell quickly. As a seller you will probably have more negotiating power and obtain a higher selling price for your property. Unfortunately you will be on the other side of the fence when purchasing your next home.

Buyer's Market:
The supply of homes exceeds the number of buyers (supply greater than demand). In this market prices tend to drop and the homes stay on the market longer. Thus your home may take longer to sell and you will have less negotiating power in terms of the selling price. Fortunately you will be in the driver's seat when making an offer on your next home.

IN SUMMARY:
When you understand current market conditions, you are better able to position yourself as a Seller. It helps to know if you are in a Seller's, Buyer's or Balanced market when setting your asking price. In a Seller's market, there is little competition and you may ask for and achieve a slightly higher price than you anticipated. In a Buyer's market there is a lot more competition and Buyers have plenty of choices and room to negotiate, forcing you to be very competitive when setting your price. In a Balanced market you will have a fair number of showings and sell in a reasonable amount of time if properly priced.

This is your dilemma:

Should you wait for the right home to come on the market before putting your current home up for sale or should you sell first and then go out and find what you want?

While there is no simple answer to this question, you will probably come to a definite decision based on your personal comfort levels with regard to the following.

Sell First

Questions you should ask yourself

• Do you have reasonable options available if your closing dates do not line up and you cannot move into your new home the same day you move out of your current home?
• How would you and your family react to the stress of having to rent for an unknown period of time?

Buy First

Questions you should ask yourself

• How would you react to the stress of owning two homes at once?
• Would you have the financial reserves to do this?
• How would you feel if you were eventually forced to sell your current home at a "fire sale" price?

Conditional Offers

A third option involves making your offer to purchase conditional upon your being able to sell your current home within a specified time period. Conditional offers usually include a clause that allows the Seller to continue to market his or her property while you try to sell your home. If the Seller receives another bona fide offer, they can accept it and ask you either to remove your condition and firm up or to step aside. While conditional offers do not provide all of the advantages of the first two options, they do offer a reasonable compromise for those uncomfortable with the drawbacks associated with either selling or buying first.

The selling and buying of a house can be a stressful and confusing process. Not only is it very expensive to 'learn from your mistakes' but very few people move often enough to gain the needed experience.

Although there is no substitute for doing your homework (start by asking your family and friends who have recently moved for their experiences) the following list of common pitfalls may be helpful.

1. Pricing Incorrectly (too high or too low):
Make sure you determine the market value of your home correctly: If your asking price is significantly higher than what the market is currently bearing, many potential buyers looking for your style of home will view similar but lower priced homes first. Not only does this limit the pool of potential buyers but it also increases the chances that your home will sell for less than its actual value. This is due to the "discount" often associated with properties that have been on the market for a longer than average time. Buyers are often overheard asking their Agent... "What's wrong with that home? It's been for sale forever".
Alternatively, if your asking price is too low, you are literally giving away your hard-earned equity just because you did not know what the market would bear.

2. Failing to "Showcase" your home:
A little work can improve the first impression of your home a thousand-fold. First impressions are lasting impressions and can dramatically affect a property's perceived value.

3. Mistaking a Bank's appraisal or a new Tax Assessment as your home's actual market value:
These processes are based on general guidelines such as lot size and square footage, not the specific qualities and improvements of your home. Using either of these as a baseline could cause you to over-price or under-price your property. It requires detailed background knowledge of all recent neighborhood sales as well as homes currently for sale in order to estimate value accurately. Ask your Real Estate Agent for a detailed market evaluation.

4. Choosing the wrong Real Estate Agent or choosing a Real Estate Agent for the wrong reasons:
It is critical that you have full confidence in your Real Estate Agent's experience and abilities. You want a Real Estate Agent who can explain the whole selling process to you, has a good feel for the market, has access to potential buyers and offers sound advice on how to improve your chances of selling. Try to avoid choosing a Real Estate Agent on the basis of which one gives the highest estimate of your home's value. In order to achieve the best sale price within a reasonable period of time you need an accurate indication of what the true market value of your property is. Knowing this allows you to properly price your home, thus maximizing your chances of selling and allowing you to make your future plans with the sure knowledge that your goals can be attained.

5. Failing to take current market conditions/trends into account:
Is it a Buyer's market, a Seller's market, a Balanced market? What do future trends look like? Ask your Real Estate Agent for a full analysis.

6. Not taking advantage of market fluctuations: The Big Picture...
Moving up in a market downturn? If your $150,000 home has dropped 10% in value, so has your $300,000 dream home. Yes, you lose $15,000 on your current home, but you save $30,000 on your next purchase! Always keep in mind the big picture.

7. Using "Hard Sell" during showings:
No one likes being pressured. As well, buyers might wonder why you are so anxious to sell. Let your home speak for itself.

8. Mistaking "Lookers" for "Buyers":
Many people who look at homes for sale may just be getting a feel for the market, seeing how others 'showcase' their homes, or even just looking for decorating ideas. Your Real Estate Agent deals with these situations on a full-time basis and has the experience needed to separate the "Lookers" from the actual "Buyers".

9. Relying too heavily on advice from the Buyer's Real Estate Agent:
The interests of buyers and sellers are often opposing. In an agency relationship it is very difficult for one Real Estate Agent to look out for the interests of both the buyer and the seller. You want to make sure you are familiar with Real Estate relationships and the difference between being a client or a customer before accepting advice from an agent or entering into any formal relationship with an agent.

10. Limiting the marketing and exposure of your property:
Part of what a good Real Estate Agent does is to ensure that your property is showcased and marketed in the best and most productive manner possible. Not allowing a "For Sale" sign on the front yard or limiting viewing times can dramatically reduce the number of prospective purchasers seeing your home and have a serious impact on your bottom line.

"First Impressions Count."
"You Never Get a Second Chance to Make a First Impression."  
"First Impressions are Lasting Impressions."

As tired and banal as these clichs may sound to you, the reason why they are clichs is because they are true.

The decision to buy a house is not solely based upon rational factors such as price, location and accessibility to services. It is also an emotional choice. It is a search for a home, a place in which one will find comfort, security and happiness, a place one would want to settle down and live in.

Emotions are set early, so it is important that minor, even typical, nuisances such as an unmowed lawn or a pile of boots by the door are looked after. As unfair as it might be to your home, after only fifteen seconds most buyers have already developed a perception of your property that will color their feelings for the rest of the showing and perhaps dramatically affect their perceived value of the property.

Here is a list of suggestions for creating a favorable first impression:

The "Presentation"

• Turn on all lights
• Open all drapes in daytime
• Play quiet background music
• Turn on air-conditioning or light fireplace
• Keep pets outside during showings (or, better yet, at a friend's)
• Have as few people in the house as possible. If you can, be absent during any showings as potential buyers often feel awkward and rush through if they think they are inconveniencing the owner.

If you find yourself wondering what it would be like to have a larger kitchen, an extra bathroom or even a main floor family room, you are probably wrestling with the dilemma: "Should I renovate or just move?"

It is never easy to uproot your family and move to a new home, especially if you have settled in and grown comfortable where you are. This is why we are often tempted into over improving our homes instead of just moving to something that meets our changing needs. While it is difficult to separate emotions and memories from financial considerations, it is often helpful to step back and look at what sort of return you get when investing in a major renovation.

The Appraisal Institute's most recent renovation And Home Value survey lists the 10 renovations that have the greatest financial return at resale time. In a poll conducted annually, 200 appraisers nationwide are asked to rank renovations by their return on investment. The results are summarized as a percentage of the money spent on each renovation that a homeowner can expect to recoup when they finally move.

Selling your home is a complex and stressful undertaking; Getting an expert to help will save you time, money, and aggravation.

The Advantages of working with a Real Estate Agent are:

• Looking out For Your Best Interests:
  By asking a Real Estate Agent to act on your behalf during the sale of your home, you create an Agency Relationship and become the Real Estate Agent's client. Real Estate Agent always owe their clients full fiduciary duties, such as loyalty, obedience, confidentiality, accountability, duty of care, and full disclosure of all pertinent facts.
• Getting the Best Price:
  Professional marketing means top dollar and a faster sale. Real Estate Agent spend a lot of time and energy making sure they know their local market inside and out. They know the current market value of properties in your area and are your best resource for determining and getting the best and highest price possible. All Real Estate Agent have access to all of their agency's resources and marketing skills, ensuring that all potential buyers are quickly made aware of your home.
  Showcase your home in the best possible light:
• "First impressions count!"
  As unfair as it might be to your home, after only fifteen seconds most buyers have already developed a perception of your property that will color their feelings during the rest of the showing and perhaps dramatically affect how they perceive the value of the property. Real Estate Agent can offer a great deal of information and advice on how to significantly increase your chances of obtaining the highest and best price for your home.
• Dealing only With Qualified Buyers:
  Real Estate Agent have access to pre-screened and pre-qualified buyers who are really serious about buying in your neighborhood. They work full-time making these connections and are literally the best source of potential purchasers.
• Negotiation Expertise:
  Real Estate Agent do many things, but one of their most important functions is to negotiate on behalf of their clients. When you sell your house, you want the best price in a reasonable amount of time. Your Real Estate Agent's job is to facilitate this by drawing up legally binding contracts, assisting in negotiating any offers, offering advice and perspective, and if needed, acting as a mediator during any potential disputes between you and the purchaser.
• Professional Experience:
  A Real Estate Agent brings to the table all of his or her knowledge, training and negotiation skills, and will explain exactly what you can expect from the buying/selling process. He or she will be able to explain your rights and obligations, help organize and strategize, and even discuss financing options.
  All Real Estate Agent are members of the National Association of REALTORS® (NAR). This organization requires all of its members to adhere to a strict Code of Ethics and Standards of Business Practice. The Code and Standards are very important because they assure that all Real Estate Agent offer the highest level of service, honesty and integrity possible. All Real Estate Agent are subject to constant professional monitoring that keeps them directly accountable to the individual consumers they serve. NAR also ensures that all of its members are knowledgeable and highly trained in order to better serve the public and offers ongoing education courses so that Real Estate Agent continue to meet the highest professional standards in an ever-changing industry.
• Access to Multiple Listing Services:
  Real Estate Agent have exclusive access to the Multiple Listing Service (MLS). The MLS system is one of the most effective marketing tools available, giving all Real Estate Agent nation-wide access to your property.