Selling your Home
Setting the Right Price
All sellers would like to sell their house for as much as possible, while all
buyers would like to pay as little as possible. Market conditions, the desirability
of the house, as well as now quickly you want it to sell. Most of the time,
buyers and sellers find a middle ground, but there are always ways to pull the
situation in your favor.
- Get the facts.
It's not necessary to spend money on a formal market appraisal, Realtors specializing
in your area have enough information to do an accurate comparative market
analysis. Agents take data from recent home sales, your home's attributes
and the neighborhood to determine a fair value of your house.
Click here for a free comparative market analysis.
- Set your price judiciously.
It is prudent to set your price 5 to 10 percent above the market price in
order to end up with your home's actual value when you sell it. You can also
figure out a price per square foot by looking at the prices of other homes
on the market already - you can do this by diving the list price by the square
footage. Of course, more desirable qualities and features allows you to set
a higher price. One more thought, follow the retail hook by setting the price
just above a whole numbe, ie. $189,000 instead of $190,00, there's a reason
why this practice is popular.
People look for the new listings when buying a house, so the longer your house
is on the market, the less likely you are to be satisfied by agreed price.
List your house in the spring or fall, when more buyers are looking. avoid
slow periods in mid summer or mid winter.
- Have your house inspected.
Be ahead of the game, getting your home inspected at the beginning of the
process allows you to address issues and make repairs before you sell your
house. This also reduces surprises, and reduces any price reductions you would
have to make in order to make last minute repairs that can be costly.
- Make your home a model home.
After you've made repairs, you want to dazzle potential buyers who are willing
to pay for a home in perfect condition. A little paint, floor polish, new
fixtures, and new plants inside and out can make your home that much more
appealing, and therefore more profitable.
- Simplify the Contract
In the purchase contract, avoid expensive terms such as paying a buyer's closing
costs, and watch out for contingencies that could cost you time off the market.
If a buyer wants to close the sale contingent on selling his or her current
house, include a kick-out clause that allows you to back out of the deal within
72 hours if you receive an offer that does not contain contingencies.
So, you're accepting an offer, is it possible you are missing
out on a better one by doing this? If the price is in your range, consider market
conditions and how quickly you want or need to sell. In a seller's
market with few listings, you may get other offers right away. But in
a buyer's market with many listings,
you risk offending the buyer who may then withdraw the offer. If local practice
and custom is to entertain all offers as they are received, follow convention
and counter at a higher price. If custom dictates that no offers will be accepted
until after the first open house, you have a reprieve.
Nothing to Lose
In a buyer's market with many listings, you may be presented
with a low offer. Such offers can be annoying, but consider testing the buyer's
interest by countering the offer. (The buyer could be testing you, too.) If
your home is in a desirable location and in excellent condition, and the buyer
is genuinely interested in purchasing a home, you have a golden opportunity
to sell. Find out what the buyer really wants and shape the counteroffer accordingly.
Signal your flexibility on contract terms or, if you can, offer seller financing
in exchange for a higher price.