Pricing: Beat Your Competition To The Contract
To sell your home quickly for top dollar in today’s market, the best move you can make is to price the property at its current market value. When you set the right price on your home, you have an edge over your competition.
Here’s how setting the right price helps you:
- You tap the pent-up demand of buyers who have already seen everything on the market and are waiting for new home listings.
- You target the right group of prospects-the ones who can afford your home and are looking at similar properties.
- Your home will compare favorably with other houses potential buyers see because yours will look better than overpriced homes in your category.
Perils Of Overpricing
Overpricing your house gives the advantage to your competition-the other homes on the market. The buyers you want to attract won’t see your house because they are only looking at homes listed in their price range.
Prospective buyers who do see your house realize they can get a better deal elsewhere. If it’s your house they want, they may choose to wait until you lower the price. And if you do reduce the price, other potential buyers wonder why the house has been on the market so long.
The right price is determined by the size, condition, and location of your home, what comparable homes are selling for at the time you list yours, and the balance of supply and demand in your area.
Strategic Pricing
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 get the most money possible from the sale.
4. Target. Ideally, the price is adjusted to the top of multiple listing categories, 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.)
Other Factors
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.
Call us to find out more about how you can price your home to sell it quickly. We’ll be happy to conduct a FREE market analysis to find the best price for listing your house.
If you have questions, we can help. E-mail us now
SEVEN SELLING MISTAKES YOU DON'T WANT TO MAKE!
Every seller obviously wants to get the most money for his or her product. Ironically, the best way to do this is NOT to list your product at an excessively high price! A high listing price will cause some prospective buyers to lose interest before even seeing your property. Also, it may lead other buyers to expect more than what you have to offer. As a result, overpriced properties tend to take an unusually long time to sell, and they end up being sold at a lower price.
Mistake #2 -- Mistaking Re-finance Appraisals for the Market Value
Unfortunately, a re-finance appraisal may have been stated at an untruthfully high price. Often, lenders estimate the value of your property to be higher than it actually is in order to encourage re-financing. The market value of your home could actually be lower. Your best bet is to ask your realtor for the most recent information regarding property sales in your community. This will give you an up-to-date and factually accurate estimate of your property value.
Mistake #3 -- Forgetting to "Showcase Your Home"
In spite of how frequently this mistake is addressed and how simple it is to avoid, its prevalence is still widespread. When attempting to sell your home to prospective buyers, do not forget to make your home look as pleasant as possible. Make necessary repairs. Clean. Make sure everything functions and looks presentable. A poorly kept home in need of repairs will surely lower the selling price of your property and will even turn away some buyers.
Mistake #4 -- Trying to "Hard Sell" While Showing
Buying a house is always an emotional and difficult decision. As a result, you should try to allow prospective buyers to comfortably examine your property. Don't try haggling or forcefully selling. Instead, be friendly and hospitable. A good idea would be to point out any subtle amenities and be receptive to questions.
Mistake #5 -- Trying to Sell to "Looky-Loos"
A prospective buyer who shows interest because of a "for sale" sign he saw may not really be interested in your property. Often buyers who do not come through a realtor are a good 6-9 months away from buying, and they are more interested in seeing what is out there than in actually making a purchase. They may still have to sell their house, or may not be able to afford a house yet. They may still even be unsure as to whether or not they want to relocate.
Your realtor should be able to distinguish realistic potential buyers from mere lookers. Realtors should usually find out a prospective buyer's savings, credit rating, and purchasing power in general. If your realtor fails to find out this pertinent information, you should do some investigating and questioning on your own. This will help you avoid wasting valuable time marketing towards the wrong people. If you have to do this work yourself, consider finding a new realtor.
Mistake #6 -- Not Knowing Your Rights & Responsibilities
It is extremely important that you are well-informed of the details in your real estate contract. Real estate contracts are legally binding documents, and they can often be complex and confusing. Not being aware of the terms in your contract could cost you thousands for repairs and inspections. Know what you are responsible for before signing the contract. Can the property be sold "as is"? How will deed restrictions and local zoning laws will affect your transaction? Not knowing the answers to these kind of questions could end up costing you a considerable amount of money.
Mistake #7 -- Limiting the Marketing and Advertising of the Property
Your realtor should employ a wide variety of marketing techniques. Your realtor should also be committed to selling your property; he or she should be available for every phone call from a prospective buyer. Most calls are received, and open houses are scheduled, during business hours, so make sure that your realtor is working on selling your home during these hours. Chances are that you have a job, too, so you may not be able to get in touch with many potential buyers.
Seller's Checklist
You can significantly influence the selling price of your property by
preparing before putting it on the market. Here are some suggestions to improve
a buyer's first impression of your home. Print this out and use it as a
reference.
General
- Remove clutter
- Remove cobwebs from ceilings and corners
- Remove paint splash on floor and cabinets
- Clean and polish door hardware and handrails
- Clean wall switches and outlet covers
- Clean and tidy basement and attic storage
- Add plants and flowers throughout the house
- Sealed driveway
- Weed-free driveway and walkways
- Healthy, weed-free, and trimmed lawn
- Trees and shrubs trimmed
- Wash front steps and porch
- Check front doorbell and bell light
- Clean or replace welcome mat
- Repair and repaint fences and gates
- Clean gutters and downspouts
- Clean or repaint siding
- Wash windows and screens
- Clean shutters
- Repaint or touch up walls, ceiling and trim
- Repair or replace damaged mounding
- Clean and wax hardwood and vinyl floors
- Shampoo carpet
- Repaint or touch up walls, ceiling and trim
- Clean drapes and bedspread
- Shampoo carpet
- Clean out all closets
- Clear all bedroom furniture
- Put away all clothing
- Paint or wallpaper using light colors
- Scrub tile, bleach, and repair grout
- Check to see that drawers/doors open easily
- Clean floor
- Clean out medicine cabinet
- Seal around tubs and showers
- Replace old toilet seats
- Replace shower window curtains
- Put out a set of color coordinated bath linens
- Paint or wallpaper walls and ceiling with light color
- Clean floor
- Clean cabinets and appliances
- Clean out refrigerator and wash interior
- Empty dishwasher and clean around controls
- Check operation of all appliances
- Arrange and clean food storage areas
- Clean out cabinets and drawers
- Neatly display dishes in cabinets
- Clear clutter from counter tops
- Check to see that drawers/doors open easily
- Wash or replace curtains
- Check operation of appliances
- Clean all appliances
- Clean and organize laundry area
- Provide adequate light to area
- Check operation of wall sockets
- Remove oil and grease from floor
- Clean and organize storage
- Maintain noisy garage door opener
For more information, please call Tham Nguyen at (408)218-0676
Home Staging
Home Staging: Set The Stage For A Quick Sale
Remember the last time you visited a new home development? How did you feel touring the model? Usually, pleasant memories come to mind about how well the home looked. that’s because it was “staged” properly.
You can do the same thing when you prepare your own home for sale.
Home staging is not about remodeling, fixing up or making your home look sterile. Instead, it focuses on amazingly simple steps to make your home show like a model without spending a lot of money. The secret is staging, which helps potential buyers imagine themselves and their families at home in your “home for sale.”
Strip Down And Build Up
The first step is to clear the stage. Take out extraneous furniture, decorations, pictures, etc. Take each room down to its most basic form, opening up the living space as much as possible. Then build it back up to the way you want it to look, as simply as possible, and without clutter.
Make the strip-down process simpler by stowing packed boxes in a staging area like the garage, or by renting a storage space to hold extra furnishings while your home is on the market. In essence, pack up early.
Props
When building the stage, try to make each room tell a story. Help potential buyers see themselves in each room. A clever arrangement of props will make is easy for buyers to imagine writing a letter at the desk in the kitchen, clicking on the television and enjoying a bowl of popcorn, turning on the stove and preparing a holiday repast.
Themes for a room can help you narrow down how to stage it. You can, of course, stage the room as you use it now, or choose a particular motif, i.e. Southwestern, country style, international. Or you could pick an activity to illustrate on your stage, i.e. relaxed office or library, gourmet cooking, resort or vacation living. What would you like to do in that room? Place the props needed for those activities throughout the room.
Lighting
Lots of lights open up a room and give it a larger appearance. If you’ve been using 50 watt bulbs, move up to 100 watts. If a large living room has only one lamp, move in another. Open curtains. Add mirrors. When it’s being shown, the home should be bright. Brightness gives a showy feel. And your home is now center stage!
Do Your Homework
Ask what buyers are looking for in your community. What are they saying about the homes they don’t buy? And what is it about the homes that are selling that makes them so popular? By determining your ideal target buyer, you will better understand how to stage your home. Our experience in your specific neighborhood can help you answer all these questions and more.
Aroma Therapy
Almost as important as how a home looks is how it smells. Ask a close friend to walk through your home-objectively-and take a whiff here and there. Are there any offensive odors? Is it too perfumy? Too drab? Stale? Musty? Are these pet odors (which should be fixed-not covered up!)? What can you do to impress potential buyers with aroma therapy?
When it comes time to sell your home, you’ll want to work with a real estate professional who knows all aspects of the selling process-including home staging. Call us today to talk about how we can help you set the stage to sell for the best possible price!
If you have questions, we can help. E-mail us now