TIPS FOR SELLING YOUR HOME
From Industry Expert Donna Fuller
Fuller Service Realty Corp.
Contrary to popular sellers belief there is one thing and one thing only that determines the selling price of your home. What it simply boils down to is, Market Value. And how you ask is market value determined? Easy, in a nutshell what the buyer is willing to pay for the home and what you are willing to let it go for.
Speaking from my past own personal experience on selling my own home. Even though I was in real estate, I was what you could call naive in the fact that I had a recent home appraisal from my mortgage holder on hand. I listed the home and thought I would be a smart move and use the appraisal as an incentive to show buyers what the bank said it was worth. Guess what happened? Boy was I wrong! In the end after many showings and reductions, I ended up selling it for about $15,000 less than that appraisal showed! Moral of the story is, that unless the bank is willing to write you a cheque for the amount the appraiser says it is worth, an appraisal ahead of a sale isn’t worth the paper it is written on when it comes to selling! It is only worth the paper to refinance, period! This is why appraisals are generally done when an actual sale is made. Ironic isn’t it how the appraiser gets the value fairly close then? (Makes his job a lot easier knowing what the actual offer price was by checking first with the buyer – ie: Market Value)
So here is the secret to selling your home, it is not worth what you, your bank or even sometimes your real estate agent thinks it is worth. Your Agent you say? That’s right you’re hearing right - you can even get 3 different Agents in to do an evaluation and get 3 different answers! Please forgive us, but remember, real estate is not an exact science. All properties are unique and you can’t compare one to another exactly. I use the example of selling a used car. Do you know “exact” value of your car when comparing it to others? No, but you can get a vague idea by researching the exact model, make, options, mileage and condition and mileage of the car and go from there. However you will never know the exact “Market Value” until a buyer makes you an offer and you both accept. Market Value is essentially selling price, what a willing buyer is willing to pay for it and a willing seller is willing to let it go for. You can argue till you are blue in the face, “well my car has a nicer options than the one down the block or at the dealership” to justify your price, however guess what? The buyer doesn’t care if he can buy the other car for cheaper and still add those options on for less! I am sure we have all been there, whether buying or selling a car or home it’s a simple concept and the same with Real Estate. There are 3 things that cause a property to sell and those are: Location, Condition and Price.
Here is the trap a lot of sellers of homes fall into. They place an emotional value on it – ie: the highest value. However, here are some facts to consider…The average buyer will see between 12- 14 homes before they make a decision. On top of that an educated Buyer’s Agent will do a Buyer’s Evaluation (or CMA – Comparable Market Evaluation) for the buyer of comparable properties and recent sales. If they wish to purchase your home this will give them a fair idea of what it is worth. If you are too much above the Market Value and other Comparables you risk losing them as a buyer or you may even get lucky enough for them to still consider it. However chances are you will receive from them what you may consider to be a low ball offer, but is it really? Take a minute to consider the facts - put yourself in the buyer shoes. The best thing to do before pricing your home is to strip yourself of emotions and take a good look at the facts of your Real Estate Agents Evaluation. If you were this buyer would you pay that much for the home? You may think well, I can hold out for my inflated price and maybe the market will come to me. Wrong thinking! No amount of advertising, signs, open houses, fancy flyers will sell a home if it is overpriced. When was the last time you bought an overpriced car for its fancy marketing? Herein lays the mistake sellers make and throw their Agent away at the end of the listing if it didn’t sell. Remember location, condition and price? Okay, well let me explain. If the location is good, the condition is good, then the only way the home can be moved is by fixing the PRICE. Because no matter how much a seller yells and kicks and screams it was my Real Estate Agents fault, remember we cannot do miracles. Successful sellers understand we as Agents provide professional market advice & direction and you still make the decision in the end because it’s your home. The best thing you can do is take ownership – literally. Keep your Agent and work with him or her. Don’t decide, “Well I will just fire the agent!” Sure you can find a replacement, but guess what’s the first thing they will likely say to you after they got the listing?...yes, you guessed it, “Lower the price.”
Successful sellers take the time to consider all the facts to learn how to price their home properly from the start. They work with hand in hand with their professional representative, they don’t start out with a pre-conceived price they think the market must pay them, they don’t place blame on the Agent, the market nor the buyers if their home doesn’t sell within a reasonable time, but rather accept the facts and reduce the price and move forward. They get inside the buyers skin and take a look at the facts through the buyer’s eyes.
For other Real Estate Selling/Buying tips, go to: www.fullerservicerealty.com click on Buyers or Sellers info.
“Our Service will Move you!”
Copyright Fuller Service Realty Corp. 2010