For most home owners, their home is one of their largest investments, and selling this investment is much more complicated than when you call your stock broker to sell off some stocks. To guide you through this process, we prepared a new report that will uncover important information, helping you make wise decisions.
1. Know Why Your Are Selling
Your motivation to sell is the biggest factor determining how you will approach the process. It affects your asking price, time, money and effort you're willing to invest in order to prepare your home for sale.
2. Keep the Reasons You Are Selling to Yourself
There are times that buyers ask - how flexible is the asking price? Where are you moving to?
If asked why you are selling, simply say you are downsizing or upgrading. If asked further questions, then let the buyer know your Realtor is looking after all those details, which politely means “none of your business”.
3. Get Enough Information to Make a Wise Pricing Decision
Determining an asking price is an art and a science.
Pricing your home too high is as dangerous as pricing too low. Remember that the average buyer will view 15-20 homes before making a decision. This means that they are comparing your home against these others, and will most likely choose the one that offers the most for the best price. If your home doesn’t compare favourably with the others in your price range, then buyers or Buyer’s Agents won’t take you seriously. As a result, your home may sit on the market for a long time and knowing this, new buyers will think there must be something wrong with your home because of the length of time it has been for sale.
4. Do Your Own "Shopping"! What are Similar Homes Selling For?
The best way to learn about your competition and discover what turns buyers off is to check out homes online or open houses. Note floor plans, condition, appearance, size of lot, location and other features. Particularly note not only the asking prices, but also what they are actually selling for.
5. Appraisals - Are They a Benefit or Detriment?
Having a "good" appraisal can be a benefit when selling your home because a reliable accredited third party appraiser's opinion, not a Realtor, can also help get the buyer excited about buying your home. But if the appraised value is a lot less than where estimated market value is, then it is a deterrent.
Three things to consider:
1) There is no guarantee you will like the figure of the appraisal
2) The appraisal has a limited time that it is usable
3) It will cost $350-$450 for an average house
6. Tax Assessments and Market Value of Your Home
Some buyers and sellers think that the tax assessment is a way to estimate the market value of a home. Tax assessments do not correspond at all to actual value. The problem here is that assessments are based on a large number of items that reflect a general value of homes in an area, but may not necessarily reflect your home's true value.
7. Hiring a Trusted Real Estate Consultant
Nearly 80% of all Realtors in the Fraser Valley sell less than 12 homes per year, so hiring an Agent, who is active (working with 100 or more buyers & sellers per year) is well worth looking for. This extra experience may be the difference between success and failure and unneeded stress. There is also a significant difference between hiring a team vs. a single Realtor. The cost may be the same, but the service of a team will be superior. Look for a team who separates their tasks and has one person who works with buyers, one person who works with sellers, another who is a customer service manager, etc.
8. How Much Negotiating Room Do You Really Need to Have?
Some sellers want lots of room, so buyers thinks they are getting a great deal, but the seller may be overpricing the property at the same time. Some Sellers under price the property and there is no negotiating room at all.
We will strategize and coach you on this pint.
9. Showcasing Your Home for Success
Showcasing your home is so critical and many times it is the little things that do count. To ignore them can kill the sale. When a buyer goes through your home, the emotional appeal is your biggest asset. The way your home feels, as well as the way it looks and smells, will determine their interest.
Would they be proud to show their friends it or would they be apologizing for its appearance?
10. Allow the Buyer Privacy
The last thing buyers want you to do is follow them around while showing the home. Let the Realtor do the selling, even if that Realtor has never seen your home before.
When viewing your home, the buyer does not want to feel like they are intruding in your life. The best thing to do is not be there – go for a walk with your pets and your children and let the Realtor lock up when done.
11. Disclose Everything
Smart sellers are proactive. They either fix what needs fixing or if there are problems, they disclose each and every known defect on the Property Disclosure Statement. By doing so, lawsuits can be prevented.
12. Creating the Auction Effect
The auction effect takes place when your marketing attracts multiples of buyers. The better the marketing and price, the more buyers will want to view your home. When buyers compete with each other, your selling price will go up.
13. Negotiating Can Be Emotional
Some sellers let their emotions get in the way. Yes, you have hard work and family memories in your home, but buyers don't really care about that! By detaching yourself from the sale and using more of a business approach in negotiating, you will have an advantage over sellers who get caught up emotionally in their sale.
14. How Motivated Are Your Buyers?
The more you know about your buyers’ motivation, the better you can negotiate. Some buyers will pay more if you give them possession at the time they need versus another date. Some buyers need the appliances included with the sale so they can pay for them within the mortgage payment.
Knowing what motivates the buyer enables you to negotiate more effectively.
15. Are the Buyers "Real"?
Are the buyers pre-qualified at the bank? Are they renting or do they need to sell first? Does the buyer need CMHC or GE financing?
Full time or part time job, length of time on the job, and amount of down payment all play a part in determining if you have a real buyer or a maybe buyer.
16. 80/20 Principle - Sell first / Buy First
About 80% of buyers sell first and then buy when their home is sold. 20% buy first and then sell, knowing they may need to make mortgage payments on two homes for a while.
17. Vacant Home Vs. Staying in the Home Until it Sells
Will the home show better furnished or vacant? If it is full of high end furnishings, then it will show better. If it is cluttered, then it will be harder to show and will show better being vacant.
18. Disadvantages of Deadlines
Keep deadlines out of the conversation. Sellers who have deadlines lose. For example, "I really need to sell before June 10th." Be open, "Our dates are flexible." Don't corner yourself into unnecessary pressures or it will show up in the buyer’s initial offer.
19. A Low Offer – Don’t Take it Personally
Don't be upset and evaluate the offer objectively. Ensure it spells out the offering price, sufficient deposit, amount of down payment, mortgage amount, a closing date and any special requests. This can simply provide a starting point from which you can negotiate.
20. Ridiculous Offers
You can reject, accept or counter any offer. In the event the offer is ridiculously low you can:
1) Reject the offer – give them a list of homes that sold in the area. If the buyers are real, then they will come back.
2) Counter the offer high – give the buyer a list of homes that sold in the area. This lets them know you want to sell but you are interested in serious offers only.
21. Avoid Problems on the Contract
To avoid problems, make sure the contract is complete with all proper paperwork taken care of – initials and signatures are correct. Ensure all terms and items included are adhered to and where the deposit money is going to be held is established.
The higher the deposit, the less the chance the buyer will try to back out.
Your Realtor will ensure that all terms, costs, and responsibilities are spelled out in the Contract of Purchase and Sale including the Property Disclosure Statement and Dual Agency Agreement, if needed, as well as any Amendment forms.
22. Do Not Deviate From the Contract or Make Verbal Deals
Once the contract is complete with all subjects removed, making verbal deals on the side can get you into hot water. For example, if the buyer wants to move in prior to closing, or just wants to store some of their belongings in your basement or garage, then there could be problems. Whose insurance will cover it? What if the buyer sees something they missed while looking at your home initially and have asked their lawyer to stop the process until things are corrected? Now is not the time to take any chances of the deal falling through, so do not make any verbal deals with the buyer.
For a Free Seller’s Consultation call us at 604-859-2341 or fill in the form below.