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WHAT EVERY SELLER SHOULD KNOW
Market intelligence, strategic positioning and successful marketing. |
How to sell fast for the most money:
List with me and expose your property on these websites below :
Buyers are more educated than ever and the majority of them are searching online:
NewEnglandMoves.com 500,000 visitors a month
ColdwellBanker.com 28 million consumers/year and 3,000 visitors per hour every day
Realtor.com 5.5 million users / month
ColdwellBankerPreviews.com
OpenHouse.com
Trulia.com 2 million visitors / month
Boston.com 4 million users /month
Google Base (Base.Google.com)
RealEstate.Yahoo.com
NYTimes.com 12 million visitors / month for properties of more than $750,000
IHT.com International Herald Tribune 4 million users Same as NYTimes.com
Top 10 Pitfalls Sellers are Most Likely to Make:
1. SELLING ON YOUR OWN: This isn’t a mistake for all sellers, but it is a serious mistake for those who don’t understand what is involved in selling a home and who aren’t well equipped to handle the transaction without assistance.
2. PICKING THE WRONG LISTING AGENT: Too many sellers pick the broker who suggests the highest asking price, rather than the one who offers the best marketing plan – backed by a customized market analysis – of what the asking price ought to be.
3. FAILING TO OBTAIN A PRE-SALE HOME INSPECTION: What you don’t know about your home can definitely hurt you. Buyers will obtain their own inspection and form their own opinions.
4. NOT DISCLOSING SERIOUS PROBLEMS: Sellers do not have a legal obligation to disclose flaws to potential buyers unless asked specifically about them, but failing to do so virtually ensures you will be sued. You may ultimately win, but the fight will be expensive and time-consuming.
5. SETTING AN UNREALISTIC SELLING PRICE: Too many sellers base their price on the amount they “need” rather than on a realistic assessment of what a buyer would pay. The longer an overpriced house sits on the market, the greater the risk that it will become “stale”, and more difficult to sell.
6. BUYING A NEW HOME BEFORE SELLING YOUR EXISTING REDSIDENCE: Sometimes this works out just fine, but if it doesn’t, you could end up making payments on two mortgages. Also, the pressure to sell your old home could lead you to accept a lower price than you might have obtained.
7. UNDERTAKING MAJOR RENOVATIONS TO INCREASE THE SELLING PRICE: Some improvements will provide a better return on your investment than others, but no major renovation project is likely to provide the dollar-for-dollar recovery anxious sellers typically have in mind. And some enhancements may annoy as many buyers as they attract.
8. STICKING AROUND DURING SHOWINGS: Sometimes personal interaction between buyers and sellers can be helpful – if they like each other. The danger is they won’t, and ill will between buyers and sellers certainly won’t help the negotiating process. Also, many buyers will find the presence of the owners inhibiting, making them reluctant to do the detailed investigation necessary to determine whether they are interested in the property.
9. BEING INFLEXIBLE ABOUT SHOWINGS: Brokers will usually try to respect your schedule and privacy, but buyers will want to see you home when it is convenient for them.
10. NEGOTIATING TO WIN RATHER THAN TO SELL: This is as much a problem for buyers as for sellers, and it results because the parties lose sight of their goals. You may be absolutely right in arguing that you have no obligation to make the $300 repair on which the buyer is insisting, but at the end of the day, do you want the sign in front of your property to say, “I was right”, or do you want it to say “Sold”?
Source: Nina Groskind, VP of eContentplus, a real estate consulting firm, as published in May 9, 2004 Boston Globe.
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7-step approach to selling your house
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Selling your house is a big decision, and sets a number of activities into motion, from repairs and refreshing your property to selecting an agent and signing a contract. Here are seven important steps in the process:
1. Get your house in order.
Make a critical assessment of any needed maintenance or repairs. Hire a home inspector if you're not comfortable making those assessments on your own. An inspection will probably cost you a few hundred dollars, but it's money well spent to keep from being unpleasantly surprised when a buyer has his own inspection done. No one wants to find out that their roof is shot, but at this stage, you can decide if it's worth it to spend the money and fix it or to sell the house as-is, disclose that it needs a new roof and set your price accordingly.
2. Look through a buyer's eyes.
Stand across the street and look at your house as if you're a prospective buyer seeing it for the first time, says Sid Davis, a Utah-based real estate broker and author of "Survival Guide to Selling a Home." If you can't be objective, ask a friend to help you. You're looking at the condition of:
. the exterior paint -- is it fading or peeling?
· the yard -- are there bare spots in the grass or overgrown shrubs? Is there trash or broken toys? Are there diseased or damaged trees that need to be removed? Are there beds that need to be weeded?
· the driveway -- is it cracked or have holes in it?
· the garage door -- is it damaged?
· the windows -- do they need to be cleaned? Are they broken? Are the screens missing, torn or broken?
· the gutters and downspouts -- are they clogged or damaged?
· the front door -- is it dirty or damaged?
· the details -- does the mailbox door fall open?
Are any house numbers missing? Are there burnt-out bulbs on the porch lights? Is there fencing that needs to be repaired?
You want to do this because you have one chance to make a good first impression. What potential buyers see on that first drive-by can do one of three things (and two of them are not good): make them fall in love, make them keep driving, or give them a checklist of items they can use to try to knock down your price.
You'll do the same thing inside the house, studying everything from how it smells to how old the carpet is.
3. What your agent will do for you ?
He will handle marketing the property, showing it, pre-qualifying buyers, negotiating offers, and working with various real estate professionals, such as appraisers, title agents and mortgage companies.
He should show you listings of houses, how long they were on the market, and the listing price vs. the sales price. Also ask about their marketing plan for your house. Will they do a brochure? A Web site? Virtual tours? Open houses? Broker caravans? He should know what works best in your market.
4. Set your price.
Many sellers set a price based on the amount of money they need to get out of the deal. "That's the kiss of death," Davis says. "It will sit on the market and you become a target of low-ball buyers and scammers. Price it right to sell it fast."
Your agent will help you set your price. Your agent shouldl pull recent sales, called "comps," to see what buyers have paid for houses like yours in the last 30 days.
"The more detailed research you can do, the better you can price the house and the more money you can get for it," says Stuart Rider, a Phoenix, Ariz., real estate developer and author of "Millionaire Homeowner: How to Turn Your Home Into a Money Machine." "Market research is where it starts."
If you price yourself within 2 percent of fair market value, you'll have pretty good traffic, says Jonathan Nicholas, regional director and executive vice president of Re/MAX of Indiana. You'll know there's a problem with the pricing if you show the house to seven people and no one makes an offer, he says.
4. De-clutter.
This is the top recommendation of real estate agents for making your house shine to potential buyers as they walk through the front door. If need be, rent a storage unit and move out any furniture that isn't necessary, says Tom Kraeutler, nationally syndicated radio host of "The Money Pit" home improvement show.
"People are moving because they need more space; space is what you're selling. The more space you have, the more inviting your house will be."
While you're at it, have a garage sale. You'll not only get rid of that accumulated clutter and pocket some cash, you might also find a buyer for your house. Nicholas says it happens so often, Realtors use them to prospect for new customers.
5. Freshen up. With the clutter gone, you'll probably see how much the place could use a fresh coat of paint. Stick with light, neutral colors -- but not white -- that go with everything. "Some buyers just don't have a 'vision' and if they see a green wall, they only remember the green wall," says Elizabeth Marquart, a real estate agent with Sotheby's International Realty in Beverly Hills, Calif.
6. List and show the property. With everything spiffed up, it's time to take the plunge and tell the world about your house. Once the house is on the market, you need to be prepared to show it at any time, keeping it clean, uncluttered, and smelling fresh, Nicholas says. When you have a showing scheduled, turn on the lights and open the drapes. Put out some fresh-baked cookies -- and a sign-in sheet with a place to offer comments and feedback. Invite them to write their comments on curb appeal, the condition of the house and whether they think it's priced appropriately. And then leave. Buyers feel much more comfortable looking at a home when the seller isn't standing over their shoulder.
7. Consider the offers.
A listing agent is required to present all offers to you from qualified buyers, so even if he thinks it's a bad deal, he has to show it to you. You'll have a short amount of time, often 24 hours, to respond to an offer. You can decide to accept the offer, reject it, or make a counter offer, Marquart says. A counter offer is when you make an offer of your own. Any offer is a starting point for discussion, and everything in it is negotiable.
Before you accept an offer -- and take your property off the market -- make sure the buyer has been pre-approved with a bank, and they have shown proof of down payment and the initial deposit.
Once both you and the buyer are happy with the terms, it's time to sign on the dotted line. Congratulations! You just sold your house!
By Pat Curry • Bankrate.com
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Avoiding 7 Costly Mistakes of Selling Your Home
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There are inappropriate steps sellers can walk down when it comes time to put their house on the market.
For instance, the seller in Virginia, who thought the half bath the builder had located at the front of the house would really be better situated toward the back of the main level (though all the other similar models had the powder room in the same place for the previous 20 years). He got hung up on this detail so much, that he just had to move it -- and did -- for thousands of dollars, just so he could get it on the market the "right way." His hang-up may have settled some deep-seated emotional need for him, but it didn't draw any more buyers, and it drained his bottom line. You might say, that was a costly mistake.
Real estate broker and author Sid Davis has identified in his book "A Survival Guide to Selling a Home," another seven costly mistakes that many sellers make when it comes time to put their home on the market. In my business, I've seen each one of these mistakes played out and it just makes me shake my head as to why, sellers forge ahead with unwise strategies, instead of listening to the voice of an experienced professional.
Mistake 1: Putting the home on the market before it's ready. Most times this happens because the seller gets impatient or is a procrastinator and has pushed himself up against a moving deadline without getting the pre-sale work done. So it comes on the market with the horrible carpet (that gets replaced during the marketing of the home); or they are painting it while it goes on the market. Presentation is everything -- so get the work done before marketing the property.
Mistake 2: Over improving the home for the neighborhood. This happens with additions, bump outs, and upgrades that make the home stick out from among its competitors so much that it's an anomaly, instead of a nice addition to the community.
Mistake 3: Pricing the home based on what the seller wants to net. This pricing strategy always ends in failure. Sellers can control the "asking" price, but they don't control the "sales" price. The market does. It doesn't matter what the seller wants, the price is determined by the black-and-white, matter-of-fact reality of the market.
Mistake 4: Hiring an agent based on non-business factors. Make sure you're hiring a professional with a proven track record. It might be nice to hand over your largest asset to your nephew who just got his license -- but make sure he has a mentor to keep your deal from going south.
Mistake 5: Getting emotionally involved in the sale of the home. This is one of the biggest challenges home sellers face when putting their house on the market. Once you decide to sell your house, it's no longer a home, but a commodity. It needs to be prepared as a commodity, marketed as a commodity, and priced as a commodity. It doesn't matter what you "want," only what the market can bear on pricing. People are going to come in to kick the tires, so to speak, and you can't get emotional about how they may or may not appreciate the nuances of your home of seven years.
Mistake 6: Trying to cover up problems, or not disclosing them. Most states have a property disclosure/disclaimer form -- use it wisely. Just because you disclaim doesn't mean you cannot be sued later for the leaky basement, or dilapidated heating/air system that's discovered 30 days after settlement.
Mistake 7: Not getting your ducks lined up before trying to sell. This would involve financing, reading the fine print on your current mortgage to ensure no pre-payment penalties, not listening to the particulars of your local market, etc. If your local market is dictating lower home prices, then lower it early, not later -- it will cost you more. If the local market dictates selling your home first, then buying second, do it in that order, or vice versa.
Avoiding these mistakes is not that difficult. Your REALTOR® is there to help you step over the pitfalls.
Written by M. Anthony Carr
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How to effectively 'show' your home
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Showing your home is a lot like a first date: You get your house all gussied up, put the prettiest face possible on the property and try to impress the heck out of someone you barely know -- the potential buyer. The objective, however, is not to get a phone number or a peck on the cheek. It's to make a sale, which in most cases, is a far greater challenge.
But showing a home does not have to be an overwhelming, costly process. Regardless of your home's size, age, style, and location, there are ways to spruce it up and effectively showcase its assets. So grab your paintbrush, carpet cleaner, lawn mower, and Lysol -- the four ingredients to a great first date -- and get to work on your house. The condition of your home is one of three factors that influence a buyer's decision, says Judy Wakeley, an accredited staging professional and owner of Refined Spaces, a real estate staging and interior redesign company based in Westchester, Pa., and Lewes, Del. "Unlike location, this is one factor you can control," she says. But the idea is "not to improve the condition of your home to your liking, but to improve it to sell it." Creating good flow There are four main areas of the home sellers should focus on, according to Lori Matzke, owner of Center Stage Home, a home presentation company based in Minneapolis, Minn. The first is the entryway. "That is your first impression of the house. Anything visible from this standpoint needs to look great," Matzke says. "If you don't impress them immediately it will be an uphill battle from then on to regain their interest." The family/living room, kitchen, and master bedroom are the three other crucial areas. The key to showcasing these rooms is to create good flow. "Buyers want to move easily from one room to the next," she says. But at the same time, they need direction. "It's important to assign each room a purpose -- a commonplace purpose," she says. "Even though you may use your formal dining room as your office, you must show the dining room with its intended purpose.
" De-personalizing Sellers should personalize the experience for the buyer. "The buyers have to be able to see past your life and your stuff so they can visualize what it would be like for them to live in your home," says Allyson Bernard, regional vice president for the National Association of Realtors' New England region.
"Minimizing clutter and packing up personal belongings helps them do that."There are two schools of thought on de-personalizing your home. "A lot of people say to take down the family photos, but I disagree. You're not fooling anyone by pretending you don't live there," says Matzke. She does, however, recommend that wedding and graduation photos, as well as collections (i.e. stuffed animals, teapots), be removed. "Those are too personal," she says.Wakely, on the other hand, believes anything that could potentially pose a distraction should be put away. "Buyers only spend 10 to 15 minutes in a home. You don't want them to be distracted by unimportant details like personal mementos. That won't help you sell your house," she says. Cleanliness is godlinessAt the same time, it's not possible to fully neutralize a home that's being occupied. Furthermore, "vacant houses do not show well. A room looks smaller without furniture and stuff in it," says Wakeley. But it must be understood that each person has a different sense of style. That style is often reflected in the type of furniture one chooses and in the way that it is arranged. "As long as the house is clean and well-maintained, buyers can look beyond the purple bathroom or the floral wallpaper in the bathroom, which might not be their style," says Bernard.
Ultimately, a homeowner is selling his or her space, not his or her things. "Rearranging the furniture can help showcase important features of the house or minimize less attractive features," says Wakeley. She also stresses the importance of accessorizing. "Adding a burgundy throw to a neutral-colored couch, or a vase of fresh flowers on the coffee table or fresh towels in the bathroom creates a welcoming environment."
Boosting curb appealAs far as the home's exterior, it's important to pay attention to curb appeal. "Here is where you can get the most bang for your buck," says Terry Hankner, a Realtor for Comey & Shepherd Realtors based in Cincinnati, Ohio. "It's relatively inexpensive to de-clutter your garage, sweep the driveway, paint the front door, mow the lawn, and plant some flowers," she says. "But it goes a long way and means a lot to the buyer psychologically." Landscaping is also key. "You don't want to have a lot of brand new plants. You want something that looks more mature and established. Stay away from starter plants -- they look like they've just been dropped in the ground," says Matzke. She says to avoid the other extreme, which is to have too many plants and flowers to the point where the yard looks overgrown. It's also important to be aware of the condition of your neighborhood. "For most buyers, it's all about location, location, location," Bernard says. While you can't control other people's yards, she says you can make sure there's no garbage in the streets or suspect abandoned cars. But she assures, "If you really take pride in your house, that can be contagious," she says.
10 showing tips:
Don't mask smells with candles or potpourri. There's no sense in replacing one odor with another. Buyers will wonder what odor you are trying to hide. But keep the exotic spices and fish to a minimum when cooking the night before a showing. Work towards achieving a "clean" smell.
Remove animals and litter boxes from the property. Find "Spot" a temporary home. Dog smell is not going to entice potential buyers.
Don't turn on all the lights. Nobody looks his or her best under stark light, including your house. Offer a nice balance of natural lighting, table and floor lamps, or tasteful overhead lights. The idea is to create a mood.
Don't paint all walls white. White walls can look too institutional. Besides, colored walls are en vogue. Try a neutral color like beige with yellow undertones or a mossy green. Get rid of dated wallpaper. While wallpaper is making a comeback, dated wallpaper will always be, well, dated. Since it's not easy to paint over wallpaper, removing it is the best option. ·
Be mindful of the carpeting. If the carpeting is in bad shape, shampoo it or replace it. Never give the buyers an allowance to replace the carpets. Do it yourself and do it before the showing. ·
Remove window screens. Screens take away from allowing natural light inside. Plus, no one will notice they are missing.
Remove all knick-knacks under 10 inches tall. We all have random, small objects that clutter our home. Pack them up and put them under the bed. ·
Put away holiday decorations. Unless you are showing your home during the holiday season, make sure to put away all holiday paraphernalia.
Don't spend a fortune on improving your home. It's worth the investment to spend some money on enhancing your home, but don't go overboard.
Alana Klein is a freelance writer in Connecticut.
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