And I mean that in the nicest way possible!
I know I post a lot of articles about short sales. In those cases, sellers are in a completely different mindset with circumstances that are usually completely different than when a homeowner is selling their home in what we in the Real Estate biz call a “standard sale.”
A “standard sale” refers to a home selling situation where typically the homeowner is not in a distressed situation. Their home value is higher than their loan amount, and they stand to gain financially from the sale. Now that we have that out of the way…
Depending on your reasons for selling your home, as well as the length of time you have lived there, can affect your motivations for moving. For example, if you are moving UP (meaning into a larger or more expensive home), you may be more excited about moving as opposed to moving DOWN (Wherein you are selling your larger home and moving into a smaller one for whatever reason). Either way, when selling your home, the trick is to appeal to as many potential buyers as possible.
First and foremost, the listing price of your home is extremely important. We’ve discussed this in previous articles. How you price your home can make a difference in getting multiple offers vs. having it sit there on the market like a poor, lonely bump on a log.
Secondly, staging your home for showing to potential buyers is nearly as important as how you price it. Remember, you want to appeal to AS MANY buyers as possible. A lot of sellers try to stage their home to say “Welcome to OUR home,” when in reality, you should stage your home to say “Welcome to YOUR home.” Home buyers, upon walking in to your house, are already imagining themselves living there. If your home is too personalized with your own family photos, or other personal mementos, the potential buyer has to mentally overcome those challenges in order to continue to imagine themselves living there.
Also, consider neutral colors when staging your home. Hot pink may be YOUR favorite color, but it may not appeal to the senses of the average home buyer. Yes, THEY can always repaint, but again, they have to overcome the challenges of their own imagination in an effort to believe they want to live in THIS house, and not the one for sale down the street or across town. Remember, even in this economy, home buyers have PLENTY of choices. Custom colors can be a plus, unless they are outdated or extreme. Questions about colors and staging? Contact me!
Staging your home properly for sale can make the difference in how long it stays on the market.
No matter how big your home is, it’s much easier to “accentuate the positive” by making it look even bigger. Too many furniture pieces and/or other clutter around makes even the biggest home look cramped. Consider selling or storing extra pieces of furniture, coffee tables, etc. Clear bookcases of the extras you no longer read, clear kitchen and bathroom countertops of extra items you don’t regularly use (or put them in a spot where you can easily access them, then put away when through). I can’t stress enough ESPECIALLY in bathrooms how important it is to clear countertops of your personal items. Trust me!
We realtors like to overuse the term “Curb appeal”, but it’s true that a first impression is also the last impression. Make sure the front of your house is as appealing as possible. Manicured lawns, clean driveways, and clear paths to the house can make all the difference in whether your potential buyer wants to step inside to see the rest.
This is sometimes awkward to talk about, but how a home smells is very important. The sense of smell triggers memories and emotions almost as much as any of the other senses. Make sure garbage is taken out before showing the home, litterboxes are scooped, yards picked up after puppy does his…ahem…business, etc.
Lastly (and here’s the “get out of your own way” part), if you are home when a buyer stops by with his or her agent (NEVER let someone see your home without an agent!), step outside. The front yard is best, as the buyer has already seen it, and then they can stroll through your home and backyard imagining themselves making an offer and closing the deal…Which is ultimately what you want, right? If the weather does not permit going outside, find a spot out of the way. PLEASE don’t follow the buyers around, telling them every little detail about the house. Again, trust me on that one!
Do you have a home to sell in Santa Clarita? Are you looking to buy? How about both? I’m your realtor! You’re home with Lisa Kaul. Learn more by going to http://kaul4homes.com, or call me direct at 661-209-7447.
So you’ve decided it’s time to sell your home. It’s a straight up sale, no short sale worries, etc. You have equity and it is time to either move up, or move down, or move away. Whatever the reason, you want to sell your home.
Now, I understand that you have all the modern upgrades. Perhaps a swimming pool, a nicely manicured landscape, large backyard, custom moldings, etc. And you tell me because of that, your home should sell for mmmm….$30-50K ABOVE what’s currently selling in your neighborhood. Stop right there…
I know, your house is beautiful and believe me, I want to sell it for you. But here are some straight up facts that we must hash out beforehand: When it comes to selling your home, focus on that which you can control, not that which you can’t.
You CAN control: The price at which you want to list your house.
You CAN’T control: The price that will be offered to you by a potential buyer.
You also CAN’T control:
- Market conditions and the Competition
- Interest rates
- The location of your property
- When the perfect buyer will show up
Let’s talk about these items in detail…
Market Conditions and the Competition
As you may know, the real estate market has taken a dramatic shift in the past few years. Five years ago property rates were climbing as high as 50% per year before it all came crashing down a few years later. Home prices (including yours) have declined, and that’s the reality. Even though news and realtor reports state claims of a ‘home inventory shortage’, it doesn’t necessarily mean a total seller’s market. You are now competing with short sales and bank-owned properties as well as other sellers who, like you, just wish to sell and find another place to live. Even though short sale and bank-owned homes are listed at Fair Market Value (FMV), their condition still dictates their final appraisal value. They are still considered comparable properties as they are the ones that have actually sold in your neighborhood, and there is a huge difference between what homes may be listed at, and what they actually sell for.
Interest Rates
Fortunately as of this writing, interest rates are at historic lows. Also, most buyers who have been pre-qualified by a lender are REALLY pre-qualified, which can be good news for you. An offer that comes in from a qualified buyer has the best chance of success and sale. That being said, we do not have control over interest rates and any number of national financial or economic issues can change that at a moment’s notice. Remember that the higher the interest rate, the less dollar amount the potential buyer can qualify for.
The Location of Your Property
Perhaps when you bought your home it was located in a lovely, quiet neighborhood that backed up to a wonderful meadow complete with wildflowers, bunnies and green hills. A few years later, developers and city planners build a road behind your home and a new housing tract goes up. Now your idyllic dreamhome backs up to another neighborhood and traffic.
OR…Maybe you bought that home on the street corner because of its lovely swimming pool, huge backyard and modern, upgraded interior AND…because it practically a STEAL! Now, consider that fact when you now have to sell your home that might not be as appealing from a location point-of-view.
When the Perfect Buyer Shows Up
Face it. When I list your home you will undoubtedly have a lot of people walking through your home, and you won’t know who that one perfect buyer is until an offer has been submitted. However, if your home is priced out of the market, you’ll never see that offer. A lot of times if your home is overpriced, other agents will show your home to compare it to the one down the street (possibly their listing) that’s more reasonably priced.
So what is the rule when pricing your home? Now, this goes against most sellers’ thinking, but the rule is to actually price it LOWER than your competition. Why? Here are some more factors affecting the price of your home:
- Availability
- Timing (AKA Your motivation to sell your home quickly)
- The condition of your home
- Terms
- Warranty
- Amenities
- Lot size, trees, views, privacy, etc.
The importance of pricing your home competitively cannot be stressed enough. In most cases, your first offer may be your best offer, and pricing misconceptions occur because sellers try to price their home based on any of the following:
- The amount of money you paid for the home.
- The amount of money you invested in updating your home.
- The amount of money you want or need to buy a new home.
- The amount of money you want or need to rebuild this home.
- What you neighbor told you he sold his home for.
- What another agent tells you he can sell your home for.
With that, the longer your home sits on the market, the less you may net from the sale of your home. Below is a graph that details how home pricing affects buyer interest:
Note that the more competitively you price your home, the more potential buyers you will have coming through your door.
More potential buyers=more potential offers=more potential counter offers from you=potentially higher sale price.
Just as the principle of value drives any other marketplace, the same principle applies in real estate. Listing your home above current market value WILL NOT get you a valid buyer…period!
I know, it sounds harsh. It sounds like obviously I might not be telling you what you want to hear. But my job is to get you the best price for your home through my education, experience and expertise; and not by providing you lip service or just taking your listing at any price just to plop a sign in your yard and sell everyone else’s home but yours (believe me, there are realtors out there who do this). These are the real facts and they WILL get your home sold fast! Trust me, I’m a professional! Now let’s list your home! Call me at 661.209.7447, or click here for your FREE Comparable Market Analysis of your home. I’ll give you the real deal and get your home sold FAST!
Lisa B. Kaul is a licensed real estate agent serving the Southern California communities of Santa Clarita, the San Fernando Valley, the Antelope Valley, Simi Valley and the Conejo Valley. Lisa also has a vast network of thousands of realtors who are ready to help you anywhere in the U.S.A. For more information, go to http://KaulGirl.com. For more information on avoiding foreclosures, go to http://Kaul4Homes.com
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