Remember the 80’s and the early 2000’s - when you could make your fortune in real estate? It was nothing then to buy a home, wait a short while, sell it at a tidy profit and then do it all over again.
Selling a home can be very challenging. It is more critical than ever to learn what you need to know to avoid costly seller mistakes in order to sell you home fast and for the most amount of money
Selling your home is an important and complicated financial transaction. This 8 step system will give you the tools to maximize your profits, maintain control, and reduce the stress that comes with the home selling process:
1 - Know why you’re selling, and keep it to yourself
The reasons behind your decision to sell affect everything from setting a price to deciding how much time and money to invest in getting your home ready for sale. What’s more important to you: the money you walk away with or the length of time you property is on the market? Different goals will dictate different strategies.
However, don’t reveal your motivations to anyone else, or they will certainly be used against you at the negotiating table. When asked, simply say that your housing needs have changed.
2 - Do your homework before setting a price
Setting an asking price shouldn’t be done lightly. Once you’ve set your price, you’ve told the buyers the absolute maximum they have to pay for your home, but pricing too high is as dangerous as pricing too low. Remember that the average buyer is looking at 15-20 homes at the same time they are considering yours. This means that they have a basis of comparison, and if your home doesn’t compare favorable with the others in the price range you’ve set, you won’t be taken seriously by prospects or agents. As a result, your home will sit on the market for a long time and knowing these new buyers will think there must be something wrong with your home.
Do your homework. (In fact, your agent should do this for you). Find out what homes in your own and similar neighborhoods have sold for in the past 6-12 months, and research what current homes are listed for. That’s how prospective buyers will assess the worth of your home.
3 - Find a good real estate agent to represent your needs
It’s a proven fact that home sellers who use a Realtor net more money than homeowners who sell their home themselves. Selling a home and making sure it closes escrow are not easy tasks, and a good Realtor can help you avoid costly mistakes and save you a great amount of time, money, and headaches.
4 - Maximize your home’s sales potential
Each year, corporate North America spends billions on product and packaging design. Appearance is critical, and it would be foolish to ignore this when selling your home.
You may not be able to change your home’s location or floor plan, but you can do a lot to improve its appearance. The look and feel of your home generates a greater emotional response than any other factor. Pick up, straighten, uncluttered, scrub, and dust. Make
Sure that all systems, appliances, etc. are in good working order. As a finishing touch, add fresh plants and flowers at the front entry and strategically throughout your home. Present your home to get a “wow” response from prospective buyers.
5 - Allow the buyers to imagine themselves living in your home
The decision to buy a particular home is emotional, not logical. Prospective buyers want to “try on” your home just like they would try on a new suit of clothes. If you follow them around pointing out this improvement or that, or it your décor is so different that it’s difficult for a buyer to strip it away in his or her mind, you make it difficult for a buyer to feel comfortable enough to imagine themselves as an owner.
6 - Effectively market your home and make it easy for prospects to get information about your home and access to it.
Where is your time and money best spent in promoting/marketing your home for sale? Statistics indicate that sales resulted from the following: other real estate agents, about 60%; “For Sale” yard signs, more than 12%; print media advertising (newspaper/homes magazines), about 10%; Internet, 10%; and other sources make up about 5%.
Serious buyers have little patience for pursuing homes when information about the property is not readily available and when there is not a reliable, efficient process in place 7 days a week for setting appointments and viewing the property.
7 - Know your buyer
Knowledge is power. Learn as much about the prospective buyer as you can—(while revealing little about your circumstances). You will be much more effective in controlling the negotiation process and assuring a sound contract if you know the following: what is the buyer’s motivation? Is the buyer’s purchase contingent upon the sale/closing of a home? Has the buyer been pre-qualified/pre-approved with a lender? Know thy buyer!
8 - Make sure the contract is complete and disclose, disclose, disclose
Make sure all terms, costs, and responsibilities are spelled out in the contract of sale, and resist the temptation to diverge from the contract. Be sure that all “due diligence” dates in the contract are met by you and by the buyer. A carefully prepared sales contract is your protection and roadmap for closing the transaction smoothly. Additionally, carefully complete a Seller’s Property Disclosure form for the buyer to review and sign. If the buyer knows about a problem/issue in advance of closing, he is unlikely to come back with a lawsuit later on.
