|Special Home Seller
For Selling Your Home For
Do you remember the good old days, when anyone could sell their home at any time and make thousands…perhaps tens of thousands in profit?
Maybe you do or don’t. But I do.
Even though today’s financing programs make it easier than ever to buy a home, times have changed. Buyers are more sophisticated. They’re more discriminating in what they buy. They’re more skeptical.
And they have information sources available…like the internet…that simply weren’t available 5 or 10 years ago.
No question about it…the "easy sell" days are over.
If You’re Trying To Sell Your Home Today
…With Or Without A Realtor…
You Could Lose Thousands Of Dollars, And
Take An Enormous Amount Of Time
If You Don’t Know What You’re Doing
That’s why I wrote this report. Every day I see home sellers lose money, and waste precious time because they make critical mistakes they didn’t have to make. Here are just a few…
There are a lot of "old school" real estate companies who still believe all you need to do is put your home in MLS, pop up a sign, and the sellers will flock to your door. Or who say things like "we give you the highest level of quality, trust, integrity and service." (Isn’t that the LEAST you should expect from a Realtor?)
Or those agents who inflate your home’s value to "trick" you into listing with them. Or the ones who tell you, "I’ve got a buyer right now who would love your home, and if you list with me right now…"
You Need To Watch Out For These Dinosaurs, Because As Well-Intended As
They May Be, They’re About To Cost You Thousands And Waste Your Time!
Selling a home today requires a total integrated approach many real estate agents are simply not aware of.
You should expect detailed FACTS…not simple promises, opinions, and fancy pictures. And you should expect straight answers, not "sales pitches" or other hype that seduces you to hire a company who boasts they’re "the biggest" or "the best."
In fact, there are 6 important marketing steps in the home selling process YOU need to know about. We’re going to delve into each one right here, so you’ll know what you’re doing, and can receive Top Dollar proceeds for your home – whether you use a real estate agent or not.
Step #1: Understand What The TOTAL Market Is Doing, And Get The FULL FACTS.
One of the biggest mistakes people make when selling homes is they rely solely on "local neighborhood market analysis information" to determine the right price to list their home.
Your local real estate agent shows up with a "canned" analysis they took right off a computer screen. They typed in a few parameters, and out popped a report showing the homes that sold in your area.
They put it into a fancy folder with their "Colossal Real Estate Company" name on it, and try to pass it off on you.
In most cases, they didn’t view the homes. They didn’t call anyone. They don’t know WHY one home sold for $105 a foot, and another sold for $89 a foot. They don’t know how construction materials, siting, location, or other features have affected each home they just found.
In most cases, they simply haven’t taken the time to do their homework. They just average them all together and tell you that’s what you’re home’s worth.
Who are they kidding?!!
First and foremost, before you list your home for sale, INSIST on seeing a "total market overview" of exactly what is going on in the ENTIRE market. Then narrow your analysis to local market information.
Why do I say this? Because you want to know 2 things: 1) What is the ENTIRE market doing with values? Are they going up? And by how much? 2) What is the specific area doing with market values? How does it compare to what the total market is doing? Are the growth rates the same, lower, or higher than the overall market?
Next, insist on real world FACTS to justify the various sales prices of comparable homes. Was there a home that sold out of financial distress? A Divorce? If so, it’s going to affect how you price your home.
Was an add-on or remodel completed poorly? Was one of the homes on the best or worst lot in the subdivision? Is one made out of CMU (concrete masonry) compared with a frame/stucco home?
Understanding these parameters will save you thousands of dollars when list your home for sale. I perform both of these analysis for my sellers, in an easy to understand format, so you know EXACTLY what your home is worth.
With real world facts, not opinions!
Step #2: Set The RIGHT Price For Your Home From
Every seller wants to realize as much money as possible when selling their home. The natural inclination is to price your home high, thinking you can always come down in the future.
But a listing price that is too high can be a disaster, and frequently nets the seller LESS money then they ever anticipated – even after paying a real estate commission!
Why is this?
Because buyers will reject your home in favor of other homes in a reasonable price range. And if that doesn’t frustrate you, think about this: Buyers will use YOUR home to compare and justify the purchase of a similar, but correctly priced home.
But the problem gets worse…
It’s a fact that 96% of all homes are sold by Realtors. So whether you sell your home yourself, or through a professional, you MUST be able to attract the Realtor community to your home.
Problem is, agents who otherwise would readily bring buyers through your home will automatically cross it off their showing schedule because it’s priced too high. They don’t make money showing homes…they make money SELLING them.
They know market values in your area. And if your home is priced too high, they’re not even going to waste their time showing it.
And word spreads with the agent community. If your home gets "branded" as overpriced, not only will agents NOT show it, BUT you’ll have to lower the price further than you ever expected…just to get them back!
Agents Simply Will NOT Show Overpriced Homes
Because They Work By Commission.
Showing Overpriced Homes That Will Never Sell
Means They’re Working For FREE
But we’re not out of the woods yet…
You see, your home is MOST valuable when it’s new on the market. And if you delude yourself into thinking you can price it high and come down later, you’re in for a big surprise.
Here’s what’ll happen: After months on the market without even a nibble, you or your agent will decide to reduce the price. Even with your price reduction, there’s still little activity because your home’s been "branded" as overpriced.
So after a while longer you decide to lower the price a little more. Now you’re pushing the limits on what you wanted to receive in the first place.
Finally, you start to get a nibble or two.
Problem is, your home’s been on the market for months now. And when you finally receive an offer, you can bet your bottom dollar it’s going to be discounted further.
Because buyers usually want to know how long a home has been on the market before they decide how much to offer. And the longer your listing has been sitting unsold, the more desperate your home looks.
Like sharks smelling blood, buyers will see your home as prey.
And their offers are going to knock you over. But you’ll have little choice but to negotiate. You have no other options.
How could this all have been avoided?
By simply pricing your home correctly in the first place.
Homes That Sell Fast Also Sell For The Most Money!
It’s a known fact: the very same reasons that make a home sell fast will make a home sell for the most money. Homes are best positioned to sell when they’re new on the market.
Here’s a little help for pricing your home…
The first thing you need is VALID local market information. Take a look at homes that have sold in your area. Compare the price sold as a percentage of list price. This will help you get a feel for the average discount in the area.
Generally, your list price will be within 2.5 to 5 percent of what you expect the final selling price will be. But be careful!
The amount of discount should be dictated by real world FACTS from YOUR AREA, not some real estate agent’s guess on what he or she expects offers to come in at. If the selling market is hot in your area, there will be little or no discounting. There may even be bidding wars, and homes selling for more than list price.
On the other hand, if homes are not selling well, you will need to be flexible.
Next, DO YOUR HOMEWORK to determine what your home is worth. You don’t just use a CMA like many agents use. Do a total market analysis.
When you narrow down your area, you need to correct values for distressed sales, divorces, remodeled homes, and other events that affect the value of other homes that have sold.
Each factor (distressed sale, condition, siting, location, etc.) will add to or detract from the value of your home. And in most cases, the only person who can really give your this information is a GOOD agent – someone who has extensive experience valuing homes.
Notwithstanding all your hard work, in the end…
The MARKET Is the Only Determinant Of The VALUE Of Your Home
There’s an old saying in real estate: "Sellers are NOT the deciders of what their home is worth, but they ARE the deciders of how quickly their home will sell."
The REAL value of your home is what a willing buyer will pay for it, and what you will accept. Nothing more. Nothing Less.
OK, so let’s say you’ve determined that the average discount on homes in your area is 2.5 percent of expected selling price. And sales information shows that your home is worth $300,000. To determine a list price that is within 2.5 percent, divide $300,000 by .975 (1.00 less .025 = .975). This gives you a list price of $307,000.
But remember this: Markets and the economy change. If interest rates rise by a point, people who could otherwise afford your home, may not be able to any longer.
And this will ultimately affect the value of your home. So you may need to adjust your price over time. Stay on top of market events, both nationally and locally.
If the market’s declining, it’s best to discount your price up front. If the market’s rising, be prepared for full price offers, or even bidding wars.
Step #3: Calculate The NET Proceeds From The Sale Of Your Home.
Here’s a fact you need to understand up front: Never attempt to price your home based on what you "want or need" to net out of the proceeds.
If you spent $40,000 on a remodeling job that will only increase your homes value $30,000, you will lose $10,000. If you paid too much when you bought your home, and need to sell it within a year or two of buying it, chances are (unless your market is red hot) you will lose money on your net proceeds.
I’ve seen these sad situations, but there’s nothing anyone can do about it.
Never Confuse The Difference Between Cost And VALUE
That said, however, you DO need to understand what your net proceeds will be from a sale of your home. And to calculate them, you need to consider 5 factors.
In many cases, the net proceeds can be as much as 10% or more off your listing price. And interestingly, this amount does NOT change even when sellers attempt to sell their homes WITHOUT a Realtor.
Guess what the first thing any buyer is going to do with a "For Sale By Owner?" They’re going to knock off the equivalent of the real estate commission you would normally pay anyhow. They hate the fact that you’re trying to pocket that money…and they’re going to fight over it.
Then they’re going to keep discounting based on other home and market criteria.
Before you know it, you’re back at the same place as if you used a professional. Only now, you’ve lost the resources a Realtor could have brought to the transaction…negotiation power, important home value information, market power, marketing resources…and much more!
So be careful. There’s a reason why 94% of all For Sale By Owners end up using a professional to market their home…It pays off in the net proceeds!
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