If you are thinking about selling your home, I’m sure you’ve been anticipating the rest of these recommendations. In addition to the first five suggestions, here are a few more that should make your selling experience a great one:
6. Don’t look just at the price the buyer offers. A good Realtor will help you understand that a great offer is the sum total of all of the terms proposed. Of course, price is important since it will be the largest variable. However, other key factors are the timetable, type of buyer financing, and special stipulations or requests that the buyer makes. A “clean” offer, i.e., one with no requests for closing cost assistance, repairs, warranties, personal property, etc., may be much more important than getting the asking price. This would certainly be true if you only had a few weeks to get to that new job, or want to make a move before the new baby arrives, or before school starts. It is critical that all offers be put into the context of a Estimated Net Proceeds Worksheet that will allow you to get a clear picture of your bottom line, especially if you receive multiple offers.
7. Don’t list your property with a real estate agent just because they charge the least (or the most). As you would with any other major investment, look for the best value. There are different levels of representation that you can accept. Limited brokerage companies may charge a flat fee to put your home in the multi-list and then it’s up to you to negotiate in a “don’t know what you don’t know” environment, matching skills with a trained negotiator. Unless you are a real estate veteran of multiple sales or have a portfolio of investment properties, you will likely need a full service brokerage. Once you’ve made that decision, you will learn that there’s no such thing as a “standard” commission. However, most brokers will set a policy for a minimum commission. Depending on the scenario, Realtors may charge a flat fee or a percentage of the sales price. Commission may also vary based on whether the listing agent also sells the property or whether that agent is participating in the new home purchase once the current home sale is consummated. Most Realtors are comfortable discussing what is and isn’t acceptable. After all, it’s the way they make a living and put food on their tables. In a typical home sale, a Realtor will perform at least 200 tasks to get the job done. If you are making a decision to choose the least expensive cost option, take the time to ask what tasks will be left out of the mix.
8. Don’t forget that buyers will shop around looking for the best buy. You are in competition with other sellers to get the buyer’s attention. It is often very helpful to have your Realtor show you what he/she considers to be the “best buys” in your price range before you make a final determination on price. If the price is not the issue, compare the competing homes in categories such as staging, new or “fresh” features such as appliances and paint, yard size and fencing, and the type of restrictive covenants that may govern use of the property. Pretend that you are shopping for a home and take an objective look at how your home measures up. Before launching your marketing activity, be sure you and your Realtor have taken a good, hard look at any repairs or changes that should be made in your home. You know the old saying: You never get a second chance to make a good first impression.
9. Don’t forget that you control the pricing of your home, how it looks, and the overall marketing plan, but the buyer controls value. If buyer’s won’t pay your price, the house remains yours. When you are negotiating an offer, remember that every time you counteroffer a buyer’s proposal, you are essentially buying your home back at the new price. Take the “value” concept out of the real estate context and think about shopping. You are walking through the mall and want to buy a new outfit. Something catches your eye and you check the price tag. If the outfit is phenomenal, just your size, your “best” color, and fits perfectly, you probably won’t have a problem paying full price because you don’t want to take a chance that it might not be in the store next week. However, if the outfit is good, but you think it’s a little overpriced compared to what you saw in the last store or the price just isn’t in your current budget, you might wait until it goes on sale and becomes a better value for the money. While that scenario is simplistic, it is applicable to real estate. Once a buyer believes your home is a good value, he will act.
10. Don’t forget that a home is basically sold twice: first to the other real estate agents and then to the buyer. Most multi-list systems are set up to notify Realtors of new listings. There are internal tracking systems that can identify whether the Realtors took any action, based on the availability of your home. In the Savannah MLS, this system quantifies how many times your property matched a buyer’s search criteria, how many times a local Realtor emailed your property to a prospective buyer, etc. If an agent doesn’t see the value, then your property will not be recommended as a viable choice to a buyer as a showing option. Be sure that your Realtor is sharing that information with you periodically. My experience has been that the most valuable marketing is the agent-to-agent communication and getting agents across the threshold (with or without a buyer in tow). If an agent personally experiences your home and finds it good value, then he/she will find a buyer for it, even if the buyer they initially brought isn’t interested.
The top ten “don’ts” in these two posts should help set a good mindset for selling. Certainly, there are scores of other elements involved. However, a seller’s attitude and approach to the sale makes all the difference. If you are considering selling your home, call me. I’d be delighted to talk with you about these and other strategies that will make the process as stress-free and successful as possible.
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