Selling a home for the first time?
It is rare to put a property out in the market, receive multiple bids & get more than what you expect. Sales have dropped about 10.% from May 2009 and prices are starting slide downward as the number of properties in the market increase steadily. It clearly indicates that we are moving into a buyers’ market.
Top reasons why properties don’t sell:
- Priced too high
- Difficult to show
- Condition of the property
- Ineffective marketing
The implementation of HST is not going to make things any easier as some potential buyers are holding back to see its effect on the market. So, selling properties in this market is not going to be a sprint but a marathon - it’s going to take some time and the sellers have to be smart with their decision making. If you are selling a property, here are some of the smart actions that sellers can do to ensure that they can promote their property well. Be smart, not hasty!
- Home inspection – The basic inspection ranges from $350 to $500. The value of the home inspection is that you will have a better idea of things that need to be fixed prior to the sale. The buyers will usually have an inspection before closing the deal anyways but it would be helpful to have the upper hand and knowledge.
- Do basic work on the house – There is lot of competition in the market and it is important to put your best foot forward. Things to consider are a clean entry way, a new paint job and great landscaping. Your realtor should be able to refer you to a professional stager who will position your property for the best showings possible with proper staging.
- Pick the right agent for you. Do you need a real estate agent? – According to NAR Research, 85% of sellers were assisted by a real estate agent when selling their home. You might think that you can save some money by not having a realtor but in this tight market, having an expert on your side will help you price, market and show the place. It also saves you valuable time. Once you’ve decided that an agent is going to help you, choose the right one for you. Not all real estate agents are created equal. Ask them about the deals that they have closed, their marketing strategy and their network base. Find out what their track record is – a good industry measurement is Medallion Club status. This recognizes the top 10% performers in the industry by MLS. There are a lot of great, professional agents who aren’t in Medallion – but this is a simple way to check in on their success rate.
- Set a price – This is the tricky part - your home is valuable to you which makes it tempting to price it high but that may not be the smartest strategy in this market. Emotion can come into play when selling your home. Remember that this is a business transaction and the buyers may not hold the same value as you do. Even if a lowball offer comes in, it is still a starting point and not an insult (don’t take it personally). Have a countering strategy and be clear on your basement price. As the market changes, your realtor will work with you to adapt to fluctuations.
- Clear the unwanted – Buyers who walk into the house are going to be looking for space and light so remove the junk and store it in a storage locker. I strongly recommend hiring a professional stager to guide you on this process. It is well worth the fee and will make a big impact on the showability of your place.
- Follow the market – Keep checking on what is happening in the market to make the right decisions. A professional realtor will be proactively communicating with you to keep you in the loop!