When buyers are looking for a new home, they use the listing price to determine which houses they will look at. The set a price range within which they will look. If you are outside that range, your house will not make the viewing list. It is a fact of life that most houses in a given neighbourhood sell within about 10% of each other.
It is important that you get the price right the first time. The longer a house sits on the market, the harder it becomes to sell. Buyers begin to think something is wrong with the house that it has not sold… especially if it is a hot market.
Market conditions can change the value of a property very quickly, both up and down. Get either a Comparative Market Analysis (CMA) from one or two Realtors. If you are considering listing your property with a real estate agent, do not necessarily pick the highest price you receive. Listen to the reasons the Realtor gives you for setting that price. Is he or she justifying the price by showing you recent sales and expired listings.
Recent sales tell you what buyers are willing to pay for a house like yours in today's market. Expired listings tell you what buyers are not willing to pay at this time. If a property is priced properly, it will always sell, regardless of its condition or location.
If your property has been on the market for longer than the average market time for your area, it is time for an up-dated CMA. Be prepared to lower your price.
Remember that is the buyer who ultimately determines what the selling price is, no matter what the listed price is. It is the market that will tell you what the selling price is going to be.
Factors that contribute to the listing price include:
• Realtor input. It will be your decision, but the Realtor will give you market information to help you pick the right price. They look at a number of factors, including: property condition, other sales in the area, size of the house, location, etc.
What happens if you under price the property? That could happen, especially if the market is rising quickly.
Well, you will be flooded by a lot of showings. Buyers and their Realtors know good value when they see it. It is possible that you will get multiple offers to consider at the same time, some above asking price.
What happens when you over price the property? This is the worst thing you can do. Buyers have a set price range. Houses in a neighbourhood often fall within 10% of a price range. If your property is over the price set by the buyer, the buyer will probably chose to ignore it.
Realtors will use your property to show their Buyers what an overpriced listing is. This will help convince them that the property around the corner is a better value. It is the property which the buyer perceives as having better value to them that determines which house an offer will be made on.
A house that is overpriced will sit on the market a long time. Realtors tend to ignore over priced listings, and the number of showing declines rapidly after just four weeks on the market. That time frame decreases even more quickly in a hot market. Buyers often know that listing has been around for a while, and the first question is often, “What is wrong with it?”
The house needs to be priced properly the first time. It will get the most showings within the first two weeks. And statistically, if a house sells, it will sell within the first 4 – 6 weeks of its being listed.
And REMEMBER… the seller sets the asking price. The buyer determines the selling price… plain and simple.
Friday, April 16, 2010
Wednesday, April 14, 2010
WHAT TO DO IF YOUR HOUSE IS NOT SELLING!
First, selling your house is like going to a job interview. The presentation is critical. Presentation is the way of life in the world of real estate. Buyers in today’s market are looking for good presentation, with many basing their final decision on it.
When average home buyers buy, they buy on emotion. Buyers often know within 10 seconds of walking in the door whether or not the house was for them. They need to feel that emotional attachment as soon as they walk into your house. The buyers need to be able to see themselves living in your house. You need to make it appealing for that first glance.
There are things you need to consider when putting your house on the market:
• Clean and organize your garage. Get rid of that junk that has piled up over the years. You know how large the garage is. But, all the buyer sees is small clogged space. Pre-pack and send on needed “stuff” to storage or recycling.
• Make sure all your light bulbs are working. A well lit house looks bright and cheery. Be sure to turn on all the lights before the buyers arrive.
• Clear out all the clutter. You love your memorabilia and knick-knacks. But, a buyer wants to be able to visualize their stuff in your house.
• Clean out your closets of unused clothing. A closet that is jammed with clothes looks small to the buyer.
• Take down posters and other such art in the children’s rooms. Doing so opens the room up, and helps the buyer see what it will look like with their “artwork” on the walls.
• Remove stuff from kitchen counters and closets. Again, this opens up the room, giving it a bigger feel.
Curb appeal is really important. Many buyers will drive by your property before they make an appointment to go through it. If they do not find the property attractive on the outside, many will not go inside. Realtors often have appointments to visit houses, only to have the buyer refuse to go inside when they arrive at the house because the buyer dislikes the outside. Consider the following:
• Be sure that the lawn is impeccable condition. Keep the grass and gardens trimmed and clean of toys, etc.
• Front entries should look fresh and inviting. Repaint trim and doors if the paint is faded or chipped. Paint lawn furniture that may need attending for the same reasons.
• If you have trees or shrubs that are blocking the front door or windows, trim them back, or even replace them with smaller plants. This will open the front of the home up making it more attractive.
• Pay attention to any gardens. Renew mulch. Get rid of weeds and dead plants.
• If it is winter, and you live in a snow belt, keep the drive and walk ways clear of snow and ice.
Carrying out necessary repairs before putting the property on the market is essential. Buyers pay a great deal of attention to details, especially if the come back for future visits.
• Repair dents, holes, or scratches found anywhere around the house, inside and outside.
• Repair faucets, doors, squeaky hinges, toilets, windows, etc.
• Exterminate insects, and get rid of their debris found on window sills and lamp shades, etc.
• A new coat of paint makes the house smell fresh and new
• If carpet is worn with wear patterns readily visible, consider replacing the carpet.
In short, make it easy for your buyer to say yes to your house. Remember that they are comparing your to all the others they will be visiting.
When average home buyers buy, they buy on emotion. Buyers often know within 10 seconds of walking in the door whether or not the house was for them. They need to feel that emotional attachment as soon as they walk into your house. The buyers need to be able to see themselves living in your house. You need to make it appealing for that first glance.
There are things you need to consider when putting your house on the market:
• Clean and organize your garage. Get rid of that junk that has piled up over the years. You know how large the garage is. But, all the buyer sees is small clogged space. Pre-pack and send on needed “stuff” to storage or recycling.
• Make sure all your light bulbs are working. A well lit house looks bright and cheery. Be sure to turn on all the lights before the buyers arrive.
• Clear out all the clutter. You love your memorabilia and knick-knacks. But, a buyer wants to be able to visualize their stuff in your house.
• Clean out your closets of unused clothing. A closet that is jammed with clothes looks small to the buyer.
• Take down posters and other such art in the children’s rooms. Doing so opens the room up, and helps the buyer see what it will look like with their “artwork” on the walls.
• Remove stuff from kitchen counters and closets. Again, this opens up the room, giving it a bigger feel.
Curb appeal is really important. Many buyers will drive by your property before they make an appointment to go through it. If they do not find the property attractive on the outside, many will not go inside. Realtors often have appointments to visit houses, only to have the buyer refuse to go inside when they arrive at the house because the buyer dislikes the outside. Consider the following:
• Be sure that the lawn is impeccable condition. Keep the grass and gardens trimmed and clean of toys, etc.
• Front entries should look fresh and inviting. Repaint trim and doors if the paint is faded or chipped. Paint lawn furniture that may need attending for the same reasons.
• If you have trees or shrubs that are blocking the front door or windows, trim them back, or even replace them with smaller plants. This will open the front of the home up making it more attractive.
• Pay attention to any gardens. Renew mulch. Get rid of weeds and dead plants.
• If it is winter, and you live in a snow belt, keep the drive and walk ways clear of snow and ice.
Carrying out necessary repairs before putting the property on the market is essential. Buyers pay a great deal of attention to details, especially if the come back for future visits.
• Repair dents, holes, or scratches found anywhere around the house, inside and outside.
• Repair faucets, doors, squeaky hinges, toilets, windows, etc.
• Exterminate insects, and get rid of their debris found on window sills and lamp shades, etc.
• A new coat of paint makes the house smell fresh and new
• If carpet is worn with wear patterns readily visible, consider replacing the carpet.
In short, make it easy for your buyer to say yes to your house. Remember that they are comparing your to all the others they will be visiting.
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