You have decided to sell. But before you put the sign in the yard there are some things you will want to make sure you have done. Time spent doing research and setting the right price will most likely yield you a better return in the end. A home is only worth what a buyer is willing to pay for it. Track your neighborhood values Find out what homes similar to yours are selling for in your neighborhood so you will have a good idea what your home is worth. Buyer or seller market You need to judge whether it's a sellers' market or a buyers' market in your neighborhood. Remember that all real estate is local. You will want to research things like interest rates, home inventory, job forecasts, and even time of year. Research inventory How many homes are for sale? If you live in a desirable neighborhood and there aren't many homes for sale, you will have a clear edge here. However, if you see lots of homes on the market and they're not selling very quickly, you might have to reduce the price you had in mind. Know the average days on the market Review the homes in your neighborhood and their days on market sometimes referred to as DOM. Look at trends for the past year and assess whether homes were appreciating or depreciating. Monitor the job market Is a big company relocating workers to your area? Or are they moving out and shutting the doors? The job market has a lot to do with the real estate market. Attend nearby open houses Observe how other properties are showing and compare them to your home. At an open house you can often feel the "mood" of potential buyers. Get a professional opinion A real estate professional will be able to help you gather all of the above information and come up with a CMA or comparable market analysis to determine the best price range for you home.
What do buyers want in a home? Is it location? Is it size? Could it be an endless list of amenities ? According to a survey done by The National Association of Homebuilders, they want all of the above. According to the survey, buyers say they want a home that is approximately 2,000 square feet. Unfortunately, only one-third of the current homes on the market have 2,000 or more square feet of livable space. Most homes are nearly 40 years old and don't have many of the amenities buyers want. So what is a seller to do? If your home is smaller than what most buyers want, play up on your homes good points. Here are some other features buyers want that could help overcome the objection to the homes smaller square footage. Location: Buyers may consider a smaller home if it's located in the best school district or in a great commuter location. Possibilities: A smaller home may have potential for expansion, making the home suddenly more appealing. Great space: The home may not have the square footage buyers want, so show off the space it does have. Remove any furniture that doesn't complement the home, making the home seem spacious and uncluttered. If your home is smaller than what many buyers want, emphasize the amenities that it does have. Help buyers see the potential in your home. Don't let them rule it out just because its current condition doesn't meet all of their needs.
Many people think they can go it alone when it comes to selling their home but there are many good reasons to hire a professional to do the job. Here are just a few of the many reasons to hire a real estate agent when selling your home: According to a study done by the National Association of Realtors, a seller who uses a real estate agent typically gets 16% more in the sale of their home than an unrepresented seller. It won't cost you a dime unless the home sells. A real estate agent and their company take on all of the costs of marketing your home and don't get paid unless the home sells. Negotiating can be tough especially when it is your own home. Your agent will do all the negotiating for you. Real estate paperwork can be confusing. Your agent will take of all the paperwork and make sure everything is done according to the laws in your area. There is no emotion. Selling your home can be emotional and using a real estate professional will help you objectively evaluate offers and determine a selling price. Just like any job it is always better to hire a professional. "When you hire people that are smarter than you are, you prove you are smarter than they are.” R.H. Grant
It is common question that real estate professional get; what is my home worth? Unfortunately, it is a question that does not have an exact answer. There are ways to determine about what your home is worth. You may find online estimates that say one thing but is that a true test of what the market will bear? So, how can you really determine what your property is worth? 1. Consider Solds-Look at other comparable homes in your area that have recently sold. This will give you a good idea what buyers are willing to pay. 2. Consider Under Agreements/Pendings-Although it is difficult to tell what a home has sold for before it closes you may be able to tell the demand in a price range. Look at the asking price of the home and how long it was on the market. If you see a trend of homes going under agreement quickly you may assume they are going closer to the asking price. 3. Consider Active Listings-Real estate is about competition just like any other commodity. It is important that your home be competitively positioned against other comparable listings. The asking price is a part of the marketing plan of the home. 4. Online Values-Be wary of online estimates. The very definition "online" takes the human factor out of determining the value. A computer program cannot take into account the nuances of location, home style and home condition. 5. Sell It-The only way to know a home's true market value is to sell it. At the end of the day a home is only worth what a buyer is willing to pay.
A house needs to be sold three times when it is on the market. First it needs to be sold to other agents so they will want to show and sell the home. Second it needs to be sold to buyers and lastly to the appraiser. Even if the buyer is willing to pay a certain price for a home they usually need a mortgage. That means it is actually the bank who is buying the home. The bank wants to protect their investment so they do an appraisal. When the appraisal comes back low or as an under-appraisal deals can fall apart. If you are a seller or a buyer you need to know how to protect yourself from short appraisals? Here are some suggestions from Bankrate.com for buyers and sellers. If you're a buyer: -- Tell your lender to find an appraiser who comes from your county, or perhaps a neighboring county. -- Request that the appraiser have a residential appraiser certification and a professional designation. Examples include the Appraisal Institute's senior residential appraiser, or SRA, or member of the Appraisal Institute, or MAI, designations. -- Meet the appraiser when he or she inspects the home and share your knowledge of recent short sales and foreclosures that might skew the comps. "Many appraisers are just pulling up data out of MLS (Multiple Listing Service) or off the deed at the courthouse and not checking it out," Sellers says. "Most good appraisers will appreciate the information." And yes, you can speak with your appraiser; the prohibition only applies to your lender. If you're a seller: --·Get an appraisal before you list a home. Search for a qualified appraiser in your area on the Appraisal Institute website. -- Use the appraisal to set a realistic listing price for your home. -- Give a copy of your pre-listing appraisal to the buyer's appraiser. The more professional appraisers will understand that you're just trying to add more data and another perspective. -- Question a low appraisal. There's always a chance the appraiser or a supervisor will take into account new or overlooked information.