How We Can Help
As the real estate industry evolves it seemingly becomes
easier to market your house without the use of a professional.
Knowing whether to use a REALTOR® or sell privately (FSBO)
can be difficult to determine. It is important to understand
what a good agent will bring to the table. Some of the main advantages
of using a professional include: emotional objectivity, knowledge
and marketing reach.
Before you decide to take on the job of selling your house
privately ask yourself a few key questions:
- Am I ready to emotionally detach myself from my house?
Sellers generally become attached to their home. Most consider their home
a sanctuary where they create an environment of relaxation and exhibit their
own style. It is difficult to let go of something that has become a part
of you over the years.
A home becomes your canvas; a painting of your life. Albums are filled with
photos from 10 years of holiday family events: Christmas mornings, Easter
egg hunts and 4 th of July barbeques with hamburgers, hotdogs and fireworks.
Walking across the floor you instinctively know what boards will creak, how
to get the toilet to stop running and how to open the screen door in a second
flat when no one else seems to have a clue. While some things may have once
seemed like an annoyance they are now a part of what makes a home your own.
Additionally, it can be difficult to maintain objectivity as buyers critique
your home. Something you find endearing, that make it so special to you,
may be the opposite for a buyer. It is important to listen to buyer criticisms
and to be open to suggestions for improvement. A REALTOR® will serve
as an emotional bridge helping you maintain an air of calm during the selling
experience.
- Do I have the proper knowledge to price my house appropriately?
The first step is reaching a listing price. Some sellers have an unrealistic
idea of the price their house may sell. Whether your idea is low or high,
your agent will play a crucial role in helping come to a sensible price range.
After completing a comparative market analysis (CMA) and examining other
data, they will offer their respectful suggestion as to the price range you’ll
be able to obtain. Once the listing price has been settled the marketing
of your house begins.
- Am I able to market my home effectively?
The initial marketing of your house is the most important aspect of the marketing
process. You’re not just selling a house, you’re selling the
intimacy and peace a home should make one feel. Once your agent has viewed
your house, he or she writes engaging ads focused on the key elements of
your house that make it saleable. These ads may be placed in newspapers,
magazines and the local MLS and are crucial to successfully selling your
house. While you may be particularly fond of the 1970’s feel of your
rust-colored carpet, a modern REALTOR® understands that today’s
home buyer will be less fond of this characteristic. Instead they may focus
on the uniquely large size of secondary bedrooms, the proximity of your home
to parks and schools or significantly lower taxes. Even if you’re able
to detach yourself from your house and market it appropriately, will you
be able to tackle problems presented during escrow?
- Can I anticipate and respond to problems quickly?
REALTORS® are trained to anticipate and avoid problems or respond to
difficult situations quickly. They’ve likely handled countless transactions
and run into near deal breakers throughout their careers. The ability to
quickly handle problems during escrow can be the difference between a closed
deal and one that falls through. Real property vs. personal property can
present issues during the closing process. For example, if you are selling
your home FSBO and do not stipulate your expensive, antique chandelier will
be moving with you, you could run into trouble. An accomplished agent would
ensure any questionable items be listed in the Bill of Sale.
- Do you have time to show your home to buyers and will you
make yourself scarce?
Most often FSBO homes do not offer access to their home via a lockbox. This
cripples the ability for agents to show your home to potential buyers while
you are at work. Further, home buyers generally feel intimidated by the presence
of the seller during their visit. They rush through the house and tell you
how wonderful it is even if they hate it. They feel uncomfortable looking
through every nook and cranny even though this is one of the most important
avenues a buyer must travel to make the decision to purchase your house.
Hence, your presence hinders the sale of your house.
These are but a few of the issues sellers can run into during
the selling process. Depending on your personal situation, knowledge
and availability, it may be in your best interest to enlist the
help and expertise of a professional real estate agent. In doing
so you should interview multiple agents prior to signing a contract
to ensure you find the agent that is best able to serve you.
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Setting The Price
When pricing your home, you may consider the price you originally
paid, add a substantial markup and presume you’re done.
This would be a grave mistake; one that could wind up costing
you thousands or end in no sale at all. In order to price your
home to sell there are many things that should be considered:
1. Obtain A Few CMA’s (Comparative Market Analysis):
When interviewing agents, you should obtain CMA’s from each agent offering
an idea of the price your home should sell. A CMA details the prices of similar
homes recently sold, on-the-market homes as well as homes that simply did not
sell in your area.
Be wary of agents attempting to “buy” your listing.
An agent practicing this technique will often sweet-talk you with their elevated
price recommendation waiting only a few weeks to insist on a price reduction.
Be mindful: a home on the market for extended periods become less saleable.
People begin to wonder if there are significant defects with the property
or whether the seller is truly motivated.
Some agents suggest under pricing your home hoping to start bidding wars amongst
hungry home buyers. While this technique may work to an extent in some markets,
it is often a wiser decision to market your home at an appropriate price from
day one.
2. Calculate the Price per Square Foot
The average square feet of homes in your area can be considerable help in determining
a proper listing price for your home. However, it is not recommended you rely
on this tidbit of information solely.
3. Evaluate Market Trends
How quickly are homes selling in your area? Are prices
increasing or decreasing? Are you in prime selling season (typically
during spring) or attempting to sell in the drooping winter season?
How many offers are sellers typically receiving once on the market?
These are only a few of many questions that your agent can help
answer.
4. What Major or Minor Problems Exist Within Your Home?
If you’re in a sellers market you may not need
to worry about fixing most problems in your house. Buyers are
much more open to problematic homes when they are having a tough
time finding one in the first place. However, if you’re
in a buyers market it would be wise to fix as many problems in
the house as you’re financial able to.
Either way, a home with problems will not generate as much value as a home
in almost perfect condition (no home is perfect!). An advisable solution would
be to evaluate the potential cost of repairs. Determine whether these costs
could be recouped during the sale of your property. It is certainly worthwhile
to consult your agent as well as other professionals for matters such as these.
5. Jazz Up the Deal
Often, buyers come to the table with terms that some
sellers are not open to accept. Some include quick sales, lease-options,
or asking that closing costs be paid by the seller. If you are
motivated to sell offer something up front to attract buyers
that may be interested in such terms.
Reaching a listing price can be tricky; however, using reliable
information with personal feelings aside, you can reach an acceptable
agreement.
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Creating an Effective Home Marketing Plan
While some agents may put an ad of your home in the local paper
and list it in the Multiple Listing Service (MLS), there are
many additional steps that should be taken to effectively market
your home enabling a quick sale at the best price. A devoted
REALTOR® will actively market your house using at least a
few of the following methods:
- Advertising in the MLS
Advertising your listing in the Multiple Listing Service (MLS) is imperative
in any marketing plan! It is typically the first place your agent will begin
marketing your house and most often directly responsible for the sale of
your house. Years ago, it was used as a medium for agents to market homes
to buyers agents, however, with the internet evolving it is now available
for buyers to search themselves on many real estate websites.
- For Sale Sign in Yard with Brochure
Box
For sale signs with professionally designed brochures displayed
in a brochure box in your front yard is also essential. This
is an inexpensive way to ensure all passersby’s get
a chance to notice your house.
- Prominent Advertising on Your
Agent’s
Website
While the MLS is available for buyers to search it is of
utmost importance your house also be prominently featured
within your agent’s website.
While your house is not likely the only listing your agent features you may
want to kindly suggest they rotate each listing from the “featured
properties” page to the homepage. The added exposure just may help
you sell more quickly and your agent will likely appreciate your interest
to help.
- Advertising in Local and/or National Newspapers
Advertising in newspapers is considered traditional advertising
and continues to provide REALTORS® an opportunity to
market listings. The downside is the potential cost, especially
on Sundays, and rarely results in a sale. It is advisable
to request your agent put more effort into other marketing
avenues instead.
- Advertising in Real Estate Magazines
Many specialty real estate magazines exist for the purpose of marketing
listings as well. Most often, these publications feature high end homes.
However, just as with newspaper ads they rarely produce qualified leads
or end in a sale. While you may like seeing your house marketed
in this manner a better option would be to opt for additional website marketing.
- Holding Open Houses
There are two types of open houses. One if for the public and generally
are held on Sunday afternoons. The other is for agents.
Ordinarily, public open houses don’t result in the sale of a
house either. Part of the reason public open houses have failed to
lead to sales in the past is the lack of visitors. There are two things
that can and should be done to promote the open house and persuade
buyers to actually visit.
The first of these is website and search engine marketing. Your agent could
easily display an invitation to the open house on the homepage of their
website a week prior to the event. Additionally, using online ad programs
such as Yahoo! Search Marketing and Google AdWords to further advertise
the open house will help draw people at a fraction of the cost of most
newspaper ads.
An ad by itself is not likely to draw in a large crowd but the promise
of something special to eat will always win over a discerning buyer. This
is the second way to increase visitors at your open house. Help your agent
prepare a menu of items to attract larger crowds of people.
However, having a public open house is not as likely to bring in many serious
buyers as a Broker open house. Broker open houses are held for agents instead
of the general public. Since agents viewing your home during a Broker open
house already have pre-qualified buyers your chances of selling are heightened.
- Providing Buyer Feedback
While this is not technically marketing, it is a valuable tool to use to
help make your home more marketable. Most agents will leave their
business card on a kitchen counter or table after a showing to offer buyer
feedback to your agent. Your agent will then gather all cards from you
at least once each week. After calling each buyers agent your REALTOR® may
provide suggestions to help improve your homes appearance. Discerning buyers
will likely disclose their likes and dislikes about your home. These details
are very important to the sale of your house.
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