Pricing the Property to Sell

The Two Most Important Factors when Selling a Home

Even in a down market, real estate experts say price and condition are the two most important factors in selling a home. So, the first step is to lower the price. Also, go through the house and see if there are cosmetic defects that you missed and can be repaired.

Home sellers should make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and a listing on the local multiple listing service.

If the seller is using a real estate agent and the property isn't getting proper exposure find another agent.

Choosing the Best Time to Sell

Because many buyers prefer to move in the spring or summer, generally the market starts to heat up as early as February. Families with children are anxious to buy so they can move during summer vacation, before the new school ear begins.

To attract the largest number of potential buyers, put your house on the market in late winter or early spring. Weather conditions are less of a consideration in some areas more than in other parts of the country. Consequently, we tend to see the real estate market pick up as early as February, with the strongest selling season usually lasting through May.

The market tends to slow down in the summer. July is often the slowest month because a strong spring will put pressure on rates and slow down the market. However, the market usually picks up again in the fall, making it the second-best time of year to list a property for sale and possibly the best time to buy. In the past, the most difficult time to sell a home was in November and December, when most people are busy with the holidays. But astute home- buyers now realize they can get better buys during the off-peak season, so this is no longer the case. And houses can look more attractive and inviting when they are decorated for the holidays. In addition, Sellers often wonder whether or not they should take their homes off the market for the holidays. Generally speaking, you'll have the best results if your house is available to show to prospective buyers continuously until it sells.

Preparing a Property to Sell

Making your home look as nice as possible may seem obvious. Apparently, it's not, because many sellers don't do much beyond vacuuming the living room rug and Maybe cleaning the ring off the bathtub.

Short of spending a lot of money, there are several steps people can take to make their home show better:

  • Sweep the sidewalk, mow the lawn, prune the bushes, weed the garden and clean debris from the yard.
  • Clean the windows (both inside and out) and make sure the paint is not chipped or flaking.
  • Be sure that the doorbell works. Clean and make attractive all rooms, furnishings, floors, walls and ceilings. It's especially important that the bathroom and kitchen are spotless.
  • Organize closets.
  • Make sure the basic appliances and fixtures work. Get rid of leaky faucets and frayed cords.
  • Make sure the house smells good from an apple pie, cookies baking or spaghetti sauce simmering on the stove. Hide the kitty litter.
  • Put vases of fresh flowers throughout the house.
  • Pleasant background music is a nice touch.
Setting the List Price

It's critical to price your home right in relationship to the current real estate market an d to the conditions prevailing in your local marketplace. Because the real estate market is continually changing, and market fluctuations have an effect on property values, it's imperative to select your list price based on the most recent comparable sales in your neighborhood.

A comparative market analysis provides the background data on which to base your list-price decision. Study the comparable sales material presented to you by the different agents you interviewed initially. If the analyses are more than two or three months old, have your agent update the report for you. If all agents agreed on a price range for your home, go with the consensus.

Watch for an agent whose opinion of value is considerably higher than the others.

How to Sell a Slow Mover

Even in a down market, real estate experts say that price and condition are the two most important factors in selling a home.

SO, the first step is to lower the price. Also, go through the house and see if there are cosmetic defects that you missed and can be repaired.

Secondly, home sellers should make sure that the home is getting the exposure it deserves through open houses, broker open houses, advertising, good signage and a listing on the multiple listing service (MLS).

Another option is to pull the home off the market and wait for overall housing conditions to improve.

Finally, frustrated sellers who have no equity and are forced to sell because of a divorce or financial considerations could discuss a short sale or a deed in lieu of a foreclosure with the mortgage lender.

A short sale is when the seller finds a buyer for a price that is below the mortgage amount and negotiates the difference with the lender.

In a deed-in-lieu-of-foreclosure situation, the lender agrees to take the house back without instituting foreclosure proceedings. But these would be considered more radical options than lowering the price.

What Repairs Should the Seller Make?

Most sellers like to make all minor repairs before going on the market in order to seek a higher sales price. In addition, buyers include a contingency inspection clause in the purchase contract which allows them to back out innumerous defects are found. Once the problems are noted, buyers can attempt to negotiate repairs or lowering the price with the seller.