Seller Information
How to price to sell and still make a profit
The
asking price you set for your home significantly affects whether you
will profit in the sale, how much you will profit and how long your
home will sit on the market. Your real estate agent's knowledge of the
overall market and what's selling - or not selling - will be invaluable
in helping you determine the price. The objective is to find a price
that the market will bear but won't leave money on the table.
Here
are some points to consider: Time. Time is not on your side when it
comes to real estate. Although many factors influence the outcome,
perhaps time is the biggest determinant in whether or not you see a
profit and how much you profit. Studies show that the longer a house
stays on the market, the less likely it is to sell for the original
asking price. Therefore, if your goal is to make money, think about a
price that will encourage buyer activity (read: fair market value).
Value
vs. Cost. Pricing your home to sell in a timely fashion requires some
objectivity. It's important that you not confuse value with cost - in
other words, how much you value your home versus what buyers are
willing to pay for it. Don't place too much emphasis on home
improvements when calculating your price, because buyers may not share
your taste. For instance, not everyone wants hardwood floors or granite
countertops.
Keep it simple. Because time is of the essence,
make it easy for the buyers. Remain flexible on when your agent can
schedule showings. Also, avoid putting contingencies on the sale.
Though a desirable move-in date makes for a smoother transition between
homes, it could cause you to lose the sale altogether.
Understanding the buyer
As the seller, you can control three factors that will affect the sale of your home:
* The home's condition
* Asking price
* Marketing strategy
However,
it's important to note that there are numerous other factors that
influence a buyer, and you need to understand these consumer trends
when you enter the sellers' market. The more your home matches these
qualifications, the more competitive it will be in the marketplace.
Your real estate agent can advise you on how to best position and
market your home to overcome any perceived downsides.
Location
Unfortunately,
the most influential factor in determining your home's appeal to buyers
is something you can't control: its location. According to the National
Association of REALTORS(r), neighborhood quality is the No. 1 reason
buyers choose certain homes. The second most influential factor is
commute times to work and school.
Size
While some buyers
want to simplify their lives and downsize to a smaller home, home sizes
in general have continued to increase over the decades, nearly doubling
in size since the 1950s. Smaller homes typically appeal to first-time
home buyers and "empty nesters," or couples whose children have grown
up and moved out.
Amenities
Preferences in floor plans and
amenities go in and out of fashion, and your real estate agent can
inform you of the "hot ticket" items that are selling homes in your
market. If your home lacks certain features, you can renovate to
increase its appeal, but be forewarned: That's not always the right
move. Using market conditions and activity in your neighborhood as a
gauge, your agent can help you determine whether the investment is
likely to help or hinder your profit margin and time on the market.
Increasing your home's appeal
Remember
the 60-second rule: That's all the time you have to create a winning
first impression. Here are some simple to significant ways to maximize
your home's appeal.
Exterior
* Keep the grass cut and remove all yard clutter.
* Weed and apply fresh mulch to flower beds.
* Apply fresh paint to wooden fences.
* Tighten and clean all door handles.
* Clean windows inside and out.
* Powerwash home's exterior.
* Ensure all gutters and downspouts are firmly attached and functioning.
* Paint the front door.
* Buy a new welcome mat.
* Place potted flowers near the front door.
Interior
*
Evaluate the furniture in each room and remove anything that interrupts
"the flow" or makes the room appear smaller. Consider renting a storage
unit to move items off-site.
* Clean and organize cabinets, closets and bookshelves.
* Clean all light fixtures and ceiling fans.
* Shampoo carpets.
* Remove excessive wall hangings and knick-knacks.
* Repair all plumbing leaks, including faucets and drain traps.
* Make minor repairs (torn screens, sticking doors, cracked caulking).
* Clean or paint walls and ceilings.
* Replace worn cabinet and door knobs.
* Fix or replace discolored grout.
* Replace broken tiles.
* Replace worn countertops.
Special details for showings
* Turn on all the lights.
* Open all drapes and shutters in the daytime.
* Keep pets secured outdoors.
* Buy new towels for bathrooms.
* Buy new bedding for bedrooms.
* Replace old lamps or lampshades.
* Play quiet background music.
* Light the fireplace or clean out the ashes and light a candelabrum.
* Infuse home with a comforting scent, such as apple spice or vanilla.
* Set the dining room table for a fancy dinner party.
* Vacate the property while it is being shown.