Selling Guide

Selling your home is a hard thing to do.  We know this because we have walked this road with so many homeowners. Not only is there an emotional consideration, but also a technical consideration.

Once the decision has been made, that the right move is to sell, it is time to transition from “home-owner” mode to “seller” mode. This could translate to a productive “to-do” list, that will help you prepare the house (and yourself) for the sale while also making the home as attractive as possible to potential buyers, which will translate to a hassle-free transfer and more money in your pocket!

So, where do we start?  That is a great question!  If you follow the steps below, you are on your way to a great launch.

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Pricing

In an ever-changing market climate, whether we are in a seller’s market or a buyer’s market, one thing we can count on is that buyers are immersed in the market. In this “age of information”, buyers have access to excellent research tools and, as such, have a wealth of knowledge on the values that are attributed to your neighborhood. A seasoned buyer has most likely toured all of your competition and will know instantly if your home is priced above, below, or if it is priced at fair market value. This point is an important consideration when choosing your pricing strategy. Read more below.

Pricing Strategy

Homes that have been on the market too long end up being stigmatized by agents and buyers who conclude that something must be “wrong” with the property. It’s best to avoid this scenario when selling.

A selling strategy that involves setting a price too high, or too low may result in the following scenario’s

High Priced Home Scenario's

  • It could drive potential buyers into the arms of your competition (other homes on the market similar to yours)

  • It could generate low showings, no offers, no negotiations, and no celebrations at the closing table

Low Priced Home Scenario's

  • You end up leaving money on the table instead of in your pocket

  • In a low inventory market, sometimes a low priced listing generates multiple offers, and buyers outbidding each other. Many times in these situations, you end up with a higher than asking price and very good terms of the sale.

Positioning your home competitively should help you sell quickly, regardless of market conditions.

Market Research

To help your position your home competitively we will research the market and prepare a report to know as a Comparative Market Analysis, or a CMA. The method we use is similar to how bank appraisers determine the value of a home. This is important to you because when we do find a buyer to purchase the home unless they are paying all cash, they will need to borrow money from a bank. A bank will not lend more money than a home is worth, as that wouldn’t be a prudent investment for them. They, after all, have no emotional commitment to the house, they are simply making a business decision.

The information we will research to determine what the current fair market value is:

Comparative Market Analysis (CMA)

  • Similar homes that have sold within the last year that share similar attributes to your home (square footage, property size, school district, type of home, age, condition, etc.)

  • Homes that are currently listed, also with similar attributes to your home

  • Homes that could also be considered are homes with pending sales (these are important to us because they will likely be your comparable sales when the bank is searching for comps for the appraisal) and homes that have expired from the market (its important to research these to try and understand why the market rejected them)

Once we locate all the appropriate comparable properties we compare and contrast to determine a range for you to consider as a pricing strategy. While we provide you with the information in an effort to help you make your determination, it is important to note, that where you position your home is totally and 100% your decision.