Pricing your home is probably the most important decision a homeowner will make when selling their home. We have an adage that we use, that the worst house in the worst location priced correctly will have a bidding war. We realize this is a very emotional decision but first and foremost this is a business decision. Making a pricing decision based on emotions, generally leads to pricing a home to high in price. The key thing to remember is that you choose the price. Our job is a coach, we can advise you but the decision is all yours.
Our philosophy is simple, at any given time there is a pool of buyers waiting for that new home to come out, they have lost several homes in the past due to waiting or underbidding. They are at the point that they can’t lose another home. The fear of loss is a great motivator. When your house comes on the market the first 10 days are critical. You want buyers to bump into other buyers and create a sense of urgency for each of them. How do you think pricing your home too high would affect those buyers?
BEWARE ...of agents who tell you a high price to get your listing
Most common pricing objections heard from sellers, really have no relationship to value. Some of the most common ones are: "Another Agent said it was worth more.” "Our home is nicer than those houses.", and "People always offer less than asking price.". Others include "We can always come down on our price.” "We have to get that much out of our home.", "My neighbor was able to get his price.", "Let's try it at our price for a month or so.", "The buyers can always make an offer.", or "We paid more than that for our home."
Obstacles to proper pricing include incompetent Agents who will accept a listing at any price the seller puts on it. Sometimes neighbors will lead the seller to believe they got more for their home than they did.
Should I buy or Sell First?
There are several factors that affect this decision. One is, do you have a certain amount of money you need to profit from the sale of your home to make the move? Another is, where you intend to go, how is the inventory of homes when you looked? Have you seen things there you liked? Do you have down payment to go ahead if you do find a home before you sell? Would you consider taking an equity line of credit to get down payment funds if you needed it?
If you are looking in a neighborhood where inventory is really an issue or you only like 1 out of 50 homes you saw, you might want to consider buying first, but the key in this situation is to base the move on netting a conservative amount of money from the sale of your home, meaning if your home is worth $450k would you consider netting 435k-440k? which is super realistic and your worst case scenario. You may net more but if you got this, would this work for you? Than feel comfortable buying first.
Another scenario is that for you to make the move, you must net from selling your home $450 and if not you cant swing it, but market value shows a price of 430-435k, we highly recommend selling your home first.
When selling, then buying price is important, but terms play a very important role. Taking the $450k value scenario, and we get 2 offers one is $452k (over asking price) but they need to move, be in 30 days vs. $448k, but if you want to move in 30 or 100 days either is fine. Terms may sometimes out weigh price.
I can sell my house my self, why pay a commission?
BECAUSE, THAT’S WHY!!!
Seriously, People do sell privately but people do win lotto, people hit the jackpot in Atlantic City. But you would agree that lotto and Atlantic City aren’t great investments.
We're not going to give you the industries standard Blah Blah Blah. We are going to tell it to you straight and honestly.
The one key reason selling privately doesn’t work is that it is impossible to negotiate on you’re own home. Selling is finding buyers true objection and overcoming it. Unfortunately a buyer is never going to tell you the seller what they don’t like about your home. . Third party negotiating is what we do that you cannot.
Qualifying the buyer. Most for sale by owners say my attorneys handling everything. Keep one thing in mind you’re attorney works for your and there attorney works for them. Do you think the buyer’s attorney will tell you’re attorney any negatives or problems with the buyer... Nope
Let me ask you a serious question. If you were a buyer and had to find a house by a deadline that is coming real close, how comfortable would you feel about dealing one on one with a seller? Without any guidance and a feeling of trust that this seller really wants you to have the house. That if a better offer comes in he would take that one in a snap. That they did a search to find if they have certificates of occupancy paperwork from the town) for work done. That the appraisal from your bank weeks down the road will not come in under value. And the list goes on. Agreeing on price is the easy part, getting to contract and closing is the difficult part. Real estate agents have a vested interest in you’re purchase going through and fight tooth and nail for you.
Should I remodel to add value to my home?
How does this sound, “Don’t spend a nickel unless you get 10 cents back”? Now that’s not to say if you can put in a new bath for $2500.00 doing the work yourself we recommend doing it. But if you are going to hire a contractor and spend $ 10,000 maybe not the best choice. This goes for windows and siding etc. As you’re Realtor it would be great to have you renovate but we found that you will not recoup that money.
It’s definitely a good idea to spruce up the house meaning removing clutter... Cleaning carpets...replacing light bulbs...
My house will go on multiple listing it doesn’t matter which broker I give it too.
Hmmm. This is a favorite it seems as if most Homeowners put more thought into the gas that they put in their car than the Broker they choose to Market and Sell their home. Choosing the right Broker can make a $10,000 – $15,000 difference in a sale. People choose agents based on some interesting reasons such as it’s a friend I feel obligated even though they sell 3 houses a year. I have even heard “ we gave it to an agent because they were so nice” In today’s Real Estate market buyers are more sophisticated and savvy than ever before and to reach these savvy buyers you must truly MARKET a home.
The Real Estate business for 50 years has been a rough road as far as customer satisfaction goes. The reasons may range from many part time housewives and retirees working in the Real Estate industry, to homeowners placing their largest investment of their life to a friend of a friend because they feel obligated. I have even heard “we gave it to an agent because they were so nice”. In the past those reasons for choosing a broker seemed to be enough. In today’s Real Estate market buyers are more sophisticated and savvy than ever before, choosing the right Broker can put $15,000-$20,000 more in your pocket