Keys to Selling Your Home in Today’s Market
Homes are being purchased—how are sellers doing it?
All homes are different and there isn’t one simple strategy that works well for every home. However, the real goal is to understand that today’s real estate market is cash driven and very competitive. Home seller’s that understand the market and work with a well-qualified brokerage are the most likely to succeed with the successful sale of their home.
In March of 2012, nearly 1/3rd of all home sales were “cash” (the buyer was not dependent upon financing, the sale of their current residence, etc). Instead, a cash buyer has the ability to close the transaction quickly instead of waiting for financing to be prepared or the sale of the existing residence.
There are 6 basic rules which typically provide success with the sale of a home:
1) Curb Appeal: The majority of home purchasers want a home that looks great from the outside. It is a matter of perception since if the home looks good from the street then the potential buyer surmises that it most likely means the home is ready for a new occupant and does not need a lot of improvement. Potential home purchasers tend to bypass a home that doesn’t appeal to them from the road—not even bothering to look inside.
2) No Cluttter: Home owners must allow potential buyers to view a clutter free home. A clutter free home will present the interior space as “larger” and abolishes the need to get rid of “stuff” when in the midst of moving. It is very wise to reduce the clutter prior to the home being placed onto the market.
3) Working condition: The home’s systems being in great mechanical condition is a positive in today’s market since most distressed property cannot compete when it comes to the basics (heating, air conditions, appliances, etc). Homes that easily get through a home inspection are typically easier to financing and are generally more appealing to home purchasers which are afraid of future costs.
4) List and negotiate properly: A seasoned real estate broker can easily show home sellers how to market and sell a home according to factors such as location, price, condition, and financing types. Hiring a qualified real estate broker to help with the sale of your home will alleviate concerns due to the market knowledge and experience provided.
5) Seek Qualified Buyers: Although cash transactions have increased, the majority of sales still require financing to be provided to the buyer for the successful sale of the home. It is very, very frustrating to enter into a purchase and sale agreement with a home purchaser who ultimately is unable to obtain funds to purchase the home. The home seller, in turn, has lost time on market (and potentially money) and has to start from scratch to locate an alternate purchaser. It will be important to ensure that the buyer has a loan approval letter “in hand” prior to accepting an offer to purchase. Lender approval letters are not binding but the document will at least show that the buyer did take the time to meet with a mortgage brokerage to gain knowledge of their financing capability.
6) Distressed properties: Approximately 30% of all home sales involve distressed property (short sales, foreclosed property/bank owned homes). It will be important to evaluate the amount of distressed property and pricing in your vicinity so that your home can be priced appropriately. Distressed property typically sells at a discount yet as mentioned previously, most distressed homes for sale require TLC. Homes in good condition obtain higher purchase prices.
