PART 2
This is a continuation of the previous post. Here are parts 4-5.
4.) When a home is for sale, most often other Real Estate Agents are the ones who bring You a Buyer to make an offer on a home. (As the listing agent has a “fiduciary” this means they are suppose to represent the seller even before their own behalf, or best interest of responsibility to the seller 1st, even though they can act as a dual in most cases they are representing the seller, remember this as you most likely get a better deal if you have your own representation as a Buyer.) They cannot cross the line, divulge information to sway either side.
You want to make smart decisions in the home buying process, especially if this is your first time buying a home, and you do not know what to expect. The Buyer’s Agent will be completing a home search on the MLS. This process is done in a very specific way, in entering the very specific criteria the buyer has requested.
The price-range is usually entered in increments of $25,000. /$100,000. So if a home is listed for say $383,500. They will miss the home search for $380,000. Or say in the case of $375,000. Which is better due to the structure of how the MLS works? If you are a buyer and you have been approved for a loan amount of say $375,000. You will miss any homes that are listed for sale in the price-range of $380,000. The Buyer’s have informed their agent of the (3) three MUST HAVES in their home! Others are wants!
5.) HOW do the “FSBO” come to their price? The “Price” and the “Condition” must be in Sync together, as you cannot have one without the other in this Market! If you need funds for your retirement, or need college funds for your child, or you just feel you need to make X number of dollars to replace your home with WHAT you want?
This has nothing to do with what your home is going to bring in price, sell for. The Market determined the price of your home, only the market, and what it is willing to bear in price. You, as the Seller may be controlling the price you and your agent decide to list it for. But, ultimately, the Buyer is the one who will determine the price as they are the one who is or is not willing to go to the bank/mortgage company and fund the home and willing to close on it.
A lot of home owners used up their home equity, bought a vehicle or other, well this is a subject matter we’ll discuss at a another time, if you like. Refinancing? Is it a good thing or bad thing, when using up the equity in your home? All these things have nothing to do with pricing your home!
The Market determines what the price is, what the market will bear.
The comparable market analysis (CMA) there is more than one way to do this process… (People shop for Value, just like anything else. We all want the most for our money, and get a good deal.) Buyer’s look for the most upgrades in a home, location, price & Condition. The home that is priced right and is in pristine condition is the one that will get the contract versus the one down the street. Again, the home that is priced right & condition, they have to be in sync! This Is the one the will attract the Buyer’s…? About the (CMA) comparable market analysis, you want to consider homes for sale currently Active, Pending and the Sold within the last six months in this constantly changing market.
You may also, want to check out the Withdrawn, Expired and Canceled listings this will show you, if they were not priced right and the market rejected them or the condition was just not their to match that price…
There are several factors to consider. If there are 28,000 homes for sale and only 900 buyers out there, there are more homes than there are buyers, due to the saturated market in a buyers market. This is why it is crucial for your home to be priced right and the condition before you ever enter it on the market! There is a direct “correlation” between days on the market and price! The longer your home is on the market most, often the price adjustment has to be made accordingly.People may even wonder if their is something wrong with your home. This is a different market now, than we’ve seen before.
If you have no showings or/& no contract offers in two weeks, most generally it is the price and could also, be the condition if you did not get them in Sync in the beginning. You only get one chance to make a first-impression! Most buyers do not want to have to come in and do anything, they want it move, in ready condition…and they don’t have to in this market!
Is your home dated, does it have The old wrought iron, or have you updated it with vinyl siding (maintenance free)
Buyers look at these type of things as replacement cost to them later.
Just like the weather there are different seasons which are better for selling your home. (Spring/Fall). However; a lot of people are becoming more nostalgic these days, and do not take for granted a home ownership in the times we live in. The present economy has taken its toll on all of us to some degree, with gas prices, etc… Usually, Buyer’s have already decided ahead of time they like something about the area of your Home to come and view it.
Weather you want to call it: Consultation, Staging, sell-ready, preview the home to give suggestions for the home seller before entering your home to sell? or not?, they All apply!
The question is how should I go about doing this? As it is an essential part of the marketing of selling a home! “Price & Condition”, have to be in sync…to get it sold in the least amount of time, for the best possible price and with the least inconvenience during the process. So, listen to your Professional Real Estate Agent in the beginning as she has done this before and knows what she is talking about, to save you hassles later on.
CMA’s finding the right price? Attempt to make all other variables equal =
Have to preview the competition. Location, size (sq ft), amenities, upgrades and yes Price & Condition… the first cannot be changed (location), second is hard to change
(Sq ft), the last two can and should be changed if a seller wants to sell in the least Amount of time for the most possible money and least inconvenience allowed.
Cleaning, paint, minor repairs so your home shows as one that has had regular Maintenance (same as you maintain your health) if you don’t its hard to get it back to its regular state. Prevention… (Preventive care) it makes sense.”Price & Condition” before you list your home for sale…A lot of it you can do yourself.
The Sellers house becomes, more appealing to the Buyer which is the main goal of Real Estate Agent and the Seller. You are adding more Value to your home.
A word of caution, if you list your home for sale. Make sure you have not priced it At the low end, where your home is the least appealing of a homes for sale, based on price and Condition and upgrades offered. An example, if buyers are looking for a home, say in the $400,000. Price-range and your home is listed for sale for $385,000.
Your home May be the least appealing due to sq ft, upgrades, value, etc. because it is at the bottom of the totem pole to speak. Compared to the other properties available and the price they will almost always choose the others over yours, because of what it has to offer based on what they are approved for, in amount and house for the Value.
The selling of your home is stressful and inconvenient and you have made this Choice, once it is on the market it becomes the buyers home and that is how You Want to think of it, how they would like it to appeal to them? That most definitely Includes paint colors on the walls. The sellers wishes is to entice the buyers to choose Their home over others in the viewing process. Sellers having the outside 1st and the inside In tip top condition, so that maybe they will even want to make an offer your home. If you need more time to get your home sell-ready, get busy! You do not want to kill the Hype that the agent has created before the home goes on the Internet! (then it becomes stale faster). This is the short term goal, of the Listing Agent & the Sellers in working together to obtain
The ultimate goal of Sold.
Getting a home ready to put it on the market —- from painting, cleaning as though it were a new home, organizing, de-clutter, remove unnecessary furniture from room to room or just removing it all together to make the rooms appear larger. Going back to the basics of when you first bought a home and you did not have much furniture.
Make all homes; equal except upgrades…wouldn’t that be a much easier process to Follow? The variables, weather it is minor repairs to major improvements. This procedure will most definitely affect the end result of How quickly a home will sell and For what price. $$ Of course, location and other factors do come into play as factors, the obvious. In an ever changing market such as the one we are experiencing Now, it may determine if it “Sells” at all.
Consulting, Staging, Previewing your home with simple suggestions: ones you must do and ones you think about? in getting your home in “seller—ready condition” 1st
Before you put it on the market to sell, FOR IT IS THE MARKET! That determines The Price & the Condition of your home! NOTHING ELSE!
It is a proven fact, that homes that were prepared for selling, or vacant staged homes SOLD faster and for more money, than the ones that did not. And in less time on the market. So before you say I don’t want to do anything; I just want to sell for this specific price. Make your business decisions with your mind/head not your heart/emotional. I can’t sell it for less than this.Be realistic in making your price decision, so you will get the price you deserve.
You may want to listen to your Real Estate Agent, the Professional who monitors the market constantly and is trying to educate you as the sellers or the buyers whichever, the case may be. Properties must be in Pristine Condition and Price correctly, now days or the Buyers will buy the home down the street that did these things to sell their home. That is why they call it a Buyer’s market, the market is saturated and they have a lot to choose from. It is a great time to buy! Sellers that are listening, are getting closer to the price they want. And they are saving a ton, due to its a Buyer’s Market, a great time to buy. Sellers making it up on the other end, when they buy.
Talk to your Professional Real Estate Agent, and go look at the other properties around your street that are for sale, Get inside and view them, pretend you’re the buyer and see which home you would Choose for the money? What upgrades the other homes has over yours. Be a smart Shopper before you sell your home, your real estate agent will be happy to show these Other homes for sale to you, if not Call me I will be happy to show you and list with you!
If you want your HOME SOLD in the least amount of time, and for the best possible Price you can get. Possibly reconsider. What do you think?
Written by
Pamela Williamson
