1. Preparing the home for sale
Homes need to be in top condition to compete in today’s market.
- Dark is the enemy, light is our friend
- Paint is the easiest way to bring a home from the 80’s to 2016
- Lighting and dates a home.
- Decluttering makes space look larger
- Thin out furniture
- Clear off all counter tops, tables and dressers
- In the winter, exterior lighting is critical
- 50% of people will only see the home in the dark
- Featured lighting systems (front rooms and exterior lights) should be on timers.
- Up lighting in key areas, light a home up
Example of the power of paint.
Example of the power of light
Buyers are driven by two emotions: Fear and Greed.
If they think there are other buyers looking at the home and they may loose it, they are driven by fear and pay a little extra. The average sales price for our listings on the market less than 14 days is 100.7% of the list price.
Correct pricing determines which category we will be in, so we must get it right the first time.
Here is how we do it.
Although each home is unique, Real estate is a comparable purchase. Buyers will compare space, features, function location, lot etc., of the homes in their geographical area and price range
Select homes with similar attributes.
- Comparable samples
- Active, Contract, and Sold homes within last 120 days within 1 mile.
- Homes of comparable
- Size (Sq Ft)
- Upgrades-Some are customary, some are extraordinary
- School districts
- Calculated attributes
- Price per sq ft
- % of assessment
- Are there any negatives?
- Heavy Traffic patterns
- Poor condition
- Functional issues
- Understanding Market conditions
- Absorption rate
- Active inventory
- Average days on market
- % of sales price to list price
Internet sites can not place a price on your home. Only a qualified Realtor can put a price on these items. I developed a Pricing Model and Growth Chart to help give visibility on pricing.
The Pricing Model zeros in on average Price Per Sq Ft (PPSF) and % of Assessment (%oA) of the closest comparables. These averages allow us to determine the the baseline. From there, we apply the intangibles you see above. Experience allows us to lock down pricing. Our listings in 2015 sold for 99.1% of list price in an average of 31 days.
The Growth Chart tracks how neighborhoods progress over the years.
To find out what your home is worth,
The Internet has change the way buyers find their homes so the Internet presentation needs to be top flight.
- Professional photography is critical
- Fusion photography if the home is large enough
- Night shots
- Seasonal shots
Fusion photography is state of the art.
- Zillow and Realtor.com are the key sites
- Enhanced listings
- Property Information
- Standard features
- Links to virtual tours
- Unique property URL-http://www.2303sawdustrd.com
- 3D Models are state-of-the-art and allow buyers to see:
A doll house version buyers can manipulate.
Allows buyers to walk through the home
When appropriate we use drones to give a feel for the home and neighborhood
- Updates every other day
- Target buyers
- Announce open houses
- Open Houses
- Once every other week for first 2 month
- Buyer traffic
- Buyer comments/feedback
- NEW for 2016: Facebook or social media advertising
- Target age group and geographical location
- Get out the proper message
Facebook tracking allows us to know who our buyers are.
- The add was seen by 2835 people in 3 days.
- 87% of the people interested in this home were 35-44 years old.
- 75% of them were women.
This is where a professional negotiator is most valuable. Every contract is negotiated by me.
- Attracting Multiple contracts
- Highest and best offer
- Disclosure of other interested parties
- Important Elements of the contract:
- Down Payment
- Type of financing
- Experience of Agent
- Settlement date
- Termite ad rest control
The #1 reason for contract kick outs. Risk must be managed and I negotiate every inspection release.
- Home inspection
- Pre-inspection of major systems-
- Most destructive words in transaction-“Past, or close to past useful life”
- Setting buyer and seller expectation
- Controlling emotion
- Buying out the inspection
- Seller MUST be in control of Termite report
- If Buyer’s inspector Seller at their mercy
- If Seller’s inspector, second opinion and control costs
- Home should be on Combo box so access is through listing agent only
- Agent provides comps
- Agent provides adjustments to prove costs
- Seller MUST be in control of Termite report
- Maintain business atmosphere-Settlements can be tense. Remain calm.
- Receipts for Repairs
- Warranties for household items
- Patch and paint major holes if any
- Deliver home in swept out condition
- Keys and remotes
- Seller letter to buyers with any specific instructions
- List of vendors
- Bring ID and canceled check to settlement so precedes get to the proper place.