Getting
the Highest Price in the Shortest Time
In order to get
the highest price in the shortest time, you need to know how to market
your home. The better you market your home, the more offers you will
get. And the more offers you get, the more choices you have to get the
price and terms you want.
The most important factor of marketing your home is pricing it right.
Your price should be adjusted to reflect the market, and the
property's worth. The key is to get many people checking out your
property at a fair price instead of having no buyers because your
price is set to high.
Another important factor is the condition of your home. Make sure that
your home looks ready to be sold. Fix any defects (peeling or faded
paint, cracks, stains, etc.) Condition alone can sometimes prompt fast
buying decisions. Not only should you fix any defects, but consider
upgrading your home by making major repairs and cosmetic improvements
before selling. A nice looking home triggers the emotional response
that can lead to a financial response.
Learn how to negotiate the best terms for all parties involved. Terms
are another factor which may be adjusted to attract buyers. If you
insist on getting your asking price, think of what you can offer to
the buyers, for example, improvements you've made, or even offering
seller financing at a lower than market interest rate on a portion of
the sale price. Convince them why they should be paying the price you
have set.
Lastly, get the buzz out about your home. List your house with a hot
agent that ensures your house is listed on the MLS and on the
internet. On your own, get the word out. It should be visible to
passerby’s that your house if for sale, whether it be signs, local
advertisements or you telling friends, family, and acquaintances.
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Making
a Good First Impression
If you want
buyers to be interested in your home, you need to show it in its best
light. A good first impression can influence a buyer into making an
offer; it influences a buyer emotionally and visually. In addition,
what the buyer first sees is what they think of when they consider the
asking price.
A bad first impression can dissuade a potential buyer. Don't show your
property until it's all fixed up. You do not want to give buyers the
chance to use the negative first impression they have as means of
negotiation.
Ask around for the opinions others have of your home. Real estate
agents who see houses everyday can give solid advice on what needs to
be done. Consider what architects or landscape designers have to say.
What you need are objective opinions, and it's sometimes hard to
separate the personal and emotional ties you have for the home from
the property itself.
Typically, there are some general fix ups that need to be done both
outside and on the inside. As a seller, you should consider the
following:
*Landscaping - Has the front yard been maintained? Are areas of the
house visible to the street in good condition?
*Cleaning or Redoing the driveway - Is your driveway cluttered with
toys, tools, trash etc.?
*Painting - Does both the exterior and the interior look like they
have been well taken care of?
*Carpeting - Does the carpet have stains? Or does the carpet look old
and dirty?
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Know
Why You are Selling
If you know
exactly why you are selling, then it is easier for you to set the
right plan of action to get what it is that you want.
If you are a seller who needs to close a sale as quickly as possible,
then you should know that getting the highest price possible is not
one of your priorities. It does not mean that you won't or cannot get
the highest price, but it means that the price is not the deciding
factor. A buyer who can give you a quick closing time will appeal much
more to you than a buyer who can offer you more money but the
negotiation and closing time drag on.
It's always good to know how low you will go, in terms of selling
price. This will help to eliminate some of the offers that you find
simply offensive or ridiculous. Even though you should consider all
offers seriously and take into consideration the terms of each offer,
sometimes, if you know the bottom line and are strict about it, you
can save yourself time.
Once you know what your limits and reasons are, discuss them with your
agent so that they can help you set your goals realistically. If you
decide to list your home on your own, make sure you do research on the
current market, and you get the proper advice you need in terms of
legal issues, etc. The key is to be realistic and to know what your
goals are so that they can be met.
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Setting
the Price
The price is
the first thing buyers notice about your property. If you set your
price too high, then the chance of alienating buyers is higher. You
want your house to be taken seriously, and the asking price reflects
how serious you are about selling your home.
Several factors will contribute to your final decision. First, you
should compare your house to others that are in the market. If you use
an agent, he/she will provide you with a CMA. The CMA will reflect the
following:
*houses in your price range and area sold within the last half-year
*asking and selling prices of houses
*current inventory of houses on the market
*features of each house on the market
From the CMA, you will find out the difference between the asking
price and selling price for all homes sold, the condition of the
market, and other houses comparable to yours.
Also, try to find out what types of houses are selling and see if it
applies to your area. Buyers follow trends, and these trends can help
you set your price.
Always be realistic. And understand and set your price to reflect the
current market situation.
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Plan
of Action
1)Analyze why
you are selling - If you understand your motives, you will be able to
better negotiate and to get what it is that you want, whether it be a
quick sale, high price, or somewhere in the middle.
2)Prepare you home for the buyer - Maximize the strengths of your
property and fix up it's weaknesses. You want the buyer to walk away
from your home with a lasting good impression.
3)Find a good real estate agent that understands your needs - Make
sure that your agent is loyal to you, and can negotiate to help you
achieve your goals. In addition, they should be assertive and honest
with both you and the buyer.
4)Be prepared for negotiation - Learn and understand your buyer's
situation; what are their motives? Can you demand a big deposit from
them? Try to lock in the buyer so that the deal goes through.
5)Negotiate for the best price and the best terms - Learn how to
counter offer to get more from every offer.
6)Make sure the contract is complete - Be honest with your
disclosures; you do not want to lose the deal because you were lying
or diminishing your home's defects. Insist the buyers get a
professional inspection. This will protect both you and the buyer.
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Finding
the Right Agent
Not all agents
work the same way. The most important attribute of an agent is that
he/she is well connected to the real estate industry. He/she should
know the market and provide information on past sales, current
listings, his or her marketing plan, and at least 4 solid references.
In addition, you also want to look for an agent that is honest,
assertive, and one that best understands your needs.
Try to go with a local agent. They can better serve your needs; they
are familiar with what the local market condition is, the local prices
are, and what's hot or not in your community.
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Considering
Offers
When reading an
offer, keep in mind that you are out to get the best price AND the
best terms for you. If you focus solely on the price, you may overlook
terms that could be favorable to you as a buyer.
Some terms that may work in your favor:
*higher-than-market-interest in a second mortgage for your home
*the buyer will pay for most or all of the closing costs
*the buyer will take care of any repairs
*quick close - the buyer is pre-approved and ready to close in a time
that best suits you
*all-cash deal
When reading through offers, remember to look at the whole package.
Take the time that you need to assess what is being offered and if it
meets your needs.
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Insist
on a Home Inspection
A professional
home inspection protects both you and the buyer. It allows both you
and the buyer the opportunity to learn about the property's defects.
A home inspection usually covers the following:
*Plumbing conditions - if there is leakage or clogging
*Roofing conditions - the extent of deterioration, if there is leakage
*Electrical conditions - if there are inadequate circuits or potential
fire hazards
*Structural problems - if there are problems with the underlying
foundation of your home
As a seller, the home inspection reports protect you because it
establishes the actual condition of the property at the time of sale.
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