While it’s a good time to buy a home, it’s a brutal time to sell. So it may pay to make your home look its best. One way to do that is via staging…
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In the process of selling a home, the single most important item to address is pricing. Pricing a home has several factors which must be addressed in order for the outcome to result in successfully attracting a buyer. This is especially true due to the fact that most local markets are experiencing what is termed a “buyer’s market.”
A “buyer’s market” is, in simple terms, one in which there are more homes for sale than there are buyers for those homes; basically a glut on the market. This can occur when the banking industry experiences a record number of homes they have in foreclosure. In this case, these foreclosed homes have saturated the real estate market, increasing inventory beyond the market. Another factor may be that people who are currently renting are hesitant to commit to a long term mortgage, even at lower interest rates, because of job instability.
What this means to someone who is attempting to sell a home is that the asking price must fall within the range of what a buyer will pay for a home in a specific location. This “magic” price is determined by the following statistical facts:
- comparison of asking price of other, similar and non-similar, homes that are in the vicinity of the subject home
- comparison of actual sold price of other similar and non-similar, homes in the vicinity of the subject home that successfully closed escrow
- how many homes are currently on the market that are comparable to the subject home
- how long other homes in the vicinity of the subject property have been on the market
- location of the subject home
- condition of the home
A seller’s true competition is the other homes on the market. By looking at the asking price of other homes, it can be determined what the current competition is. Upon analyzing competition, whenever possible it is best to come in slightly under asking prices of the other homes if at all possible. This places the seller’s home in the primary position when buyers are making their lists of the best priced homes. It is a mistaken belief that buyers and sellers are in an adversarial position. In actuality, a buyer and a seller want the same thing.
The actual sold price of other homes provides guidance as to how much the market will bear for the property. It is best to look at homes that are the same style, similar amenities, and within the same area as the subject home, but not absolutely necessary, especially in today’s market. Buyers are looking for the best deal, not necessarily a particular style. The actual sold data is the strongest indicator as to how to price a home to sell.
There are a couple of helpful pointers when reviewing how long other homes have been on the market: those that are currently active on the market, those that have received a contract on them but have not closed escrow, and those that have closed escrow. This number, termed “days on market” or “DOM,” provide information on an estimated time it will take to sell the home. This figure needs to be analyzed with the asking price history.
The location and condition of a home are generally the easiest to consider. If the home is located in a desirable area, but is in poor condition, or vice-versa, it will have an impact on the price.
In essence, you need to tie the contributing facts together, starting with the hopeful sale price based on other listings, then what they are actually selling for, and the volume of houses in your price range, and neighborhood. Then, throw in the desirability and condition of your home, and your price will finally be set. This takes some patience and courage, but the final result will be more showings which means more potential for a successful sale.
Other than selecting the best price, staging your property is the most important thing you can do to ensure that your house sells for what it’s worth. Homebuyers today like to find good deals, and also want a property that is move-in ready.
Sometimes, you will find people willing to purchase properties in distress if the price is right, especially if they are looking to flip that house for a profit. Other than that, the average person is looking for a house that is as esthetically pleasing as possible. With that in mind, here are a few tips that can help ensure that your property is ready to go when buyers start expressing interest.
Start from the outside, and work your way in. The front lawn and driveway are going to be what you need to focus on first and foremost. When people begin the process of scoping out properties they are interested in, they are going to be doing a drive-by before they request to see the inside of the house. Make sure the lawn looks nice, and any and all bushes are orderly and well-kept. If you have the ability to plant some flowers, consider doing so.
Everything you can do to make the house look appealing on the outside will entice more buyers to actually remember the property for an inside visit. Also, make sure the driveway and sidewalk are as clean as possible. There are hose attachments you can get that are power cleaners, as well as different cleaning supplies that will ensure that your concrete is clean and appealing.
Once you make your way to the inside of the property, take a look at what stands out most the second you walk in the door. Do you have nice crown molding? Are there custom draperies? Anything that catches the eye, or is unique to your house, you want to make sure is cleaned and ready to be seen. Do this throughout the house. If you have new appliances, make sure they are clean and polished.
Finally, an area of great focus should be on the bathrooms. Making a bathroom extremely presentable will tell a lot to a buyer about the condition that he or she can expect regarding the rest of the house. The bathroom is where we tend to see extra problem areas that go overlooked, but can be picked up, and frowned upon, by a savvy buyer.
These three tips will help make sure you are ready to present your home when the time comes. Other than hiring a professional stager, you as the home owner need to ensure that you take the time to fix up the property and make it look as move in ready as possible.