Thinking of Selling?
There are many reasons why you may want to sell your home, if you are considering selling your home there are some tips to ensure a better transaction. Three main points to keep in mind when you consider listing your home are Price, Time, and Condition. Price, in terms of what the highest potential sale price could be. Time, in terms of how long will it take to sell your home given market factors. And condition in regard to how a buyer would perceive the value of your home by its overall condition. Here are a few ideas you can apply when considering the sale process.
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Feature Home Selling Video of the month
How to get your Calgary home SOLD in the fall of 2010
Before listing your house on the market
- Know why you are moving. i.e. need bigger/smaller home, kids moved out, relocating to a more desired area etc. (having a strong sense of "why" you are moving will assist in making decisions along the way easier)
- Prepare your home for sale BEFORE listing it. You want to be able to show your home with confidence right down to the first buyer that walks in. (this often times is within days of listing your home on the market)
- Home staging is essential to receiving the highest return for the sale of your home. This is perhaps the easiest way to get more money for your home. Click here for Staging ideas and tips
- Find a Realtor® that you feel comfortable communicating with, there are a lot of considerations to be taken into account and a good Realtor® can make the process much more enjoyable. Save time, get more for your home, get the advice and knowledge a proficient Realtor® can provide. Why choose a Realtor® Click here
When listing your home
- Consult your Realtor® for a proper
- You and your Realtor will determine when you want showings scheduled. i.e. evening/ daytime, "after
- Your Realtor will suggest a price to list at; this price should reflect a value that your home should sell at in terms of the average
- Your list price is 100% what YOU want, however your Realtor is very important as they can outline the risks with listing too high or too low.
- Disclose to your Realtor all known material latent defects in your property.
- It is a good idea to anticipate low offers and in what way you will negotiate these offers when they come. Always thinking ahead will help you through the sale of your home. Your Realtor should have good advice on what to do in these situations.
List price considerations
- Cost of listing too high
- Your house on the market for a long time (if the price is not justifiable buyers will not show interest, the longer your home is on the market the stronger the message becomes that you are not priced reasonably)
- The longer your home is on the market the higher the chances are that the first offer you get will be substantially lower than if you list closer to market value (the buyer will justify the low offer with your inability to sell at your higher than average list price)
- Most buyers themselves will be working with a Realtor®, one whose job is to know the market, and analyze the value of homes within their buyers needs. Overpricing will reflect poor showings after you list.
- Even if a buyer does accept a higher price than market value they still must get a lender to place a mortgage on the home. If the bank appraisal determines that the price is not justifiable given comparables and sales history, the home simply wont appraise resulting in re-negotiation.... if the buyer is willing
Misconception: "The buyer will offer me a lower amount than list price anyway, if I list $20,000.00 higher than I will probably get market value or slightly more for my home"
** At the end of the day fair market value will always play a significant role in determining value for your home. The fair market value price will always be a benchmark for both buyers and sellers when determining value in a transaction. The only message you are sending with an un-justifiable list price is that of an unreasonable seller, which in turn will focus buyers’ attention to more reasonably priced properties (the competition). That is not to say that if your home has more improvements and is in better condition that it wouldn’t garner a higher sale price.
2. How important is a quick sale?
- Depending on your situation you may need to sell you home quickly (perhaps you have found the perfect home to move up to). Obviously the lower your list price in relation to FMV the quicker your home should sell, in certain situations it may be wise to take less for your home and try and seek favorable terms in the contract. (As in the case of finding the perfect home, for a steal of a deal!)
- If you are concerned with seeking the highest return for your home, then listing at or slightly above list may be the best option. This may prolong you homes exposure on the market more so than listing for less but may result in a higher offer price.
3. List it, Sell it.... the First Try!
- The best exposure when listing your home is the first exposure it has to buyers in the market.
- It may be a logical conclusion that you can reduce the list price if your home doesn’t sell. However, your home may already be looked at as old news, if it hasn’t sold what’s wrong with it? You want to take advantage of the first flurry of activity your new listing will attract; part of this is pricing right, and presenting your home in the best condition possible.
- Reducing your price after your home hits the market may send the message to buyers that you are desperate, causing them to put in low offers on your home, this in-turn may actually result in you accepting a lower price than you would have normally accepted.
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