Selling
Avoid Sellers’ Worst Mistakes
Homes in Belmont Bay
In a buyer’s market, sellers have little room for error when putting their home on the market or they risk having their property linger. Sellers should take caution to avoid the following common traps, according to a recent article at MSNBC.com.
- Overpricing the home. Home values have dropped considerably since its peak in 2006, but sellers still are often tempted to list a home based on what they paid for it. Eventually they realize their error and have to reduce their price, sometimes several times. In the past month, 23 percent of homes listed for sale on Zillow have reduced their price.
- Relying too much on just comps. Size up your competition currently on the market, not just the homes that have already sold. Evaluate homes with a listing price similar to yours to see how well yours stacks up against the competitions and how you can differentiate.
- Failing to take into account the home’s web appeal. Photos are key when marketing a home online. Be sure to include lots of high-resolution photos of the interior, including of the areas in a home that buyers most care about, such as kitchen, living spaces, and bathrooms, experts say.
- Hovering during showings. Sellers certainly shouldn’t be home for showings, but as a seller’s agent, either should you. Lurking sellers or seller agents may make buyers nervous. Other real estate agents often want privacy with their buyers so they can gather true feedback about the house.
Source: “Six Common Mistakes That Home Sellers Make,” MSNBC.com (April 11, 2011)
Survey: Sellers Fare Better With Agents
Your Realtor Diane Gussie
Sellers have a better chance at getting their house sold by using a REALTOR® than opting for the do-it-yourself approach, according to a survey of 1,000 home owners by HomeGain.com, an online real estate resource. Nearly 60 percent of home owners who used a REALTOR® to sell their home were successful compared to 39 percent of FSBOs, the survey found.
In the survey, 83 percent of home owners said they used a REALTOR® to sell their home, whereas 17 percent said they tried to sell it themselves. This corresponds to results from NAR’s 2010 Profile of Buyers & Sellers, which found 88 percent of sellers were assisted by a real estate agent. (Additionally, 83 percent of buyers bought their home through an agent.)
“It is especially striking that home owners fare significantly better in selling their homes using a REALTOR® than selling on their own,” says Louis Cammarosano, general manager at HomeGain. “Due to that relative success, the level of satisfaction in the home selling process is also higher for home sellers utilizing the services of a REALTOR® than those who try to sell their homes on their own.”
Among the findings in its For Sale by Owner vs. REALTOR® survey:
- 88 percent of home owners who sold their homes using a REALTOR® said they would use a REALTOR® again.
- 24 percent of FSBOs eventually contacted a REALTOR® to help sell their home.
Source: “HomeGain Survey Finds Home Sellers Fare 50% Better in Getting Their Homes Sold Using a REALTOR® Than Selling on Their Own,” HomeGain.com (Feb. 24, 2011)
Imagining the Possibilities, With Help
There is debate among real estate pros about whether homes being shown to buyers should be vacant or if they should bear a lived-in appearance, even if they are empty. While some believe vacant homes appeal to buyers because they look bigger and enable house-hunters to better visualize their own belongings in the space, others say that adding strategically placed items can make rooms that are a little dated look more appealing.
Even when homes are unoccupied, practitioners often do not leave them empty, either rearranging some of the seller’s belongings or hiring a professional stager to bring in furnishings that showcase the property’s best features. A consultation with a stager can cost a few hundred dollars, and full-out staging can require an investment of a few thousand dollars per month.
Some stagers offer more affordable plans in which living rooms, dining rooms, and kitchens are staged, while bedrooms are left empty. Staged properties often sell more quickly, and pictures of staged homes are more appealing than empty rooms to buyers conducting online searches. Some practitioners include staging consultations in their basic commission and require sellers to cover staging costs, while others will increase their commission rates based on how much they spend on staging.
Source: “Trying to sell your home? Take a theatrical approach,” Washington Post, Sandra Fleishman (02/05/11)
Sell my home now!
It’s easy to sell property. The hard part is selling real estate now. When there are more sellers than buyers, properties still sell. Staging your home is important, but not so important as some might lead you to believe. Advertising your property is critical and brochures can be beneficial. Ultimately, the most important factor is to get the home in the MLS and to price the home properly.
If a home is priced too high, few potential buyers will even see your house. After the home has sat on the market for a long time, buyers will expect a price drop even if the price has already dropped! For this reason it’s important to price your home at a point where it will attract attention.
In a tough market like the services of a good Realtor are needed more than ever. Your agent should be a hard worker who has the temperament to guide you through the process. You agent should be your advocate, actively negotiating your best deal. Sometimes this means getting top dollar. But sometimes this means know what to trade-off to get what you really want from a deal.
Selling your home quickly.
Here are a few quick tips to sell your house quickly.
- Choose a selling agent that cares about you and your situation.
- Price it right. Price is the biggest differentiator in a tight market. Set a price at the lower end of your property’s realistic price range.
- Put your house in order. Your property should be ready for the market before you begin showing it.
- Be flexible about showings. Home selling is often disruptive to daily life. And it’s a lot of work to have your house ready to show on the spur of the moment. But prospects that can’t see your house won’t buy your house. The more often your home is shown the greater your chances of selling the property.
- Be ready for all offers. Decide in advance what price and terms you’ll find acceptable. Don’t take offense at a ludicrous offer. Respond with a counter-offer to keep the ball moving.
In addition, Will Nesbitt has devised unique strategies to overcome the buyer’s market and to sell your home quickly. Ask him how he can save you money and sell your home quickly at the same time!
Net Proceeds
To find out how much money you’ll net from your house, add up your closing costs and subtract them from the sale price of the house.
Closing Costs for Sellers
Mortgage payoff and outstanding interest
Prorations for real estate taxes
Prorations for utility bills, condo dues, and other items paid in arrears
Closing fees charged by closing specialist
Title policy fees
Home inspections
Attorney’s fees
Survey charge
Transfer tax or other government registration fees
Brokerage commission
Total
Selling Homes With Pets
Good ole Fritz
Owning a pet, which six out of 10 U.S. households do, can be a problem for both sellers and practitioners seeking buyers.
Sellers with pets should do their best to eradicate pet odor. “Odor is the biggest obstacle,” says Trudy Severa, an associate with Long and Foster’s North Hills office in Reston, Va. “Anyone who is sensitive or with allergies is going to be put off.”
Pet hair is another turnoff for fussy people or those with allergies. A professional cleaning as well as frequent vacuuming can help.
It is also a good idea to remove the evidence of pet residents, including getting rid of dog doors, linoleum in unlikely places, even pet crates.
During showings it is smart to relocate pets because some potential buyers may find them objectionable, no matter how cute they are or where they are contained.
Source: Washington Times, Lisa Rauschart (12/03/2010)
A little thank you goes a long way …
Lola, Urban and Will
One of the best things about being a real estate professional is that many of the folks we serve become friends. For a period of time when we managed Lola’s condo in West End Alexandria. Eventually, she decided to move to Sweden with her husband Urban so she asked us to help her with the sale of her property. The overseas transaction was just one of the difficulties with this sale, but in the end it all turned out for the best.
Will, Lola and Julie
Gifts from Sweden
Urban and Lola live in Stockholm Sweden now—Urban is Swedish afterall. But When Urban and Lola came to Northern Virginia for the holidays and to visit family they were kind enough to bring gifts. The little thank you‘s of life make a big difference.
3 Reasons to Sell a Home Soon
What do you tell a client who asks whether to sell a house now or wait? Steve McLinden, real estate adviser with Bankrate.com, offers these three good reasons not to wait, even though the holidays are approaching:
- The market is improving. Most markets have either turned or are close to turning.
- All real estate is local. Homes in great locations are always in demand.
- Spring is coming soon. Many potential buyers are starting their online searches right after the holidays, making mid- to late February a great time to start marketing.
Source: Bankrate.com, Steve McLinden (11/15/2010)
Great Property Marketing Requires Sacrifice
Renovated kitchens are always popular.
How do you craft a compelling marketing message that draws the perfect buyers to your listings? It’s all about the principle of sacrifice, said Laurie Moore-Moore, founder of the Institute for Luxury Home Marketing, based in Dallas.
“Don’t waste your time bringing in people who won’t buy the house,” Moore-Moore told REALTORS® on Friday during a session on how to develop a successful marketing plan for luxury properties at the NATIONAL ASSOCIATION OF REALTORS® Conference in New Orleans. “Sacrifice those people and focus on the ones who will buy.”
For example, if you’re struggling to get offers on a beautiful home because it has a miniscule backyard, create a message that targets the small pool of buyers who would see that negative feature as a selling point. The headline to use in your marketing messages: “Backyard Removed for Your Convenience.”
Or, if you can’t seem to find any positives for a condo that’s just like all the others in the building, only it looks out onto a brick wall rather than the city skyline, try a headline like “Willing to Trade View for Value?”
How about proximity to Metro?
“Target the prospects for whom view is not an issue,” Moore-Moore said. “Sometimes the negative is your best hook—it becomes the reason to buy.”
Moore-Moore emphasized the importance of writing an interesting and descriptive headline that’s used in your printed marketing materials, your social networking communications, and possibly even on your For Sale signs. (Tip: Never use the property address as the headline!)
Once you draw the prospects in with a great headline, follow up with a story that defines the home’s lifestyle and calls out the most unique aspects of the home.
“Recognize that marketing is storytelling,” Moore-Moore said. “Ask yourself: What is different about the house that competitive homes can’t say? You have to find that special story.”
—Kelly Quigley, REALTOR® Magazine
