As your home may be your most significant asset, selling it is likely one of your most important decisions. Learn how to protect this important investment, reduce stress, and maximize your homes value.
1. Motivation and Timing
Your motivation and timing will greatly impact your marketing plan. Allowing enough time before your must move date, ensures you won’t be pressured into accepting a mediocre offer. And if desired, you will have time to prepare your home for sale.
2. Selecting a Realtor
To maximize your homes value you must hire a great Realtor. The number one complaint from consumers against Realtors is their lack of communication skills. Prior to hiring your Realtor check online reviews. Ask neighbors and friends for their recommendations; ask how easy it was to reach their agent and how much support and advice they offered throughout the process. Hiring a Realtor is similar to hiring an employee. There should be an in-depth interview as there are numerous questions to ask:
- How long have you been a Realtor? Obviously, experience is good! How many sales did you complete last year? Of the homes sold in the last twelve months where you represented the seller, what was the average number of days on market?
- What was the original list price compared to the final selling price? A Realtor® who often sells homes well below list price may not be advising sellers to price their homes correctly or may do a poor job marketing their home.
- Were there any concessions made after the buyer’s physical inspection? If so, why and how much? You want to hire a strong negotiator, unless something major and unexpected such as a cracked chimney or foundation, there should not be much renegotiation after the buyer’s inspection.
- Do you have a partner or an assistant? Agents who sell a lot of homes typically have a partner or assistant who can pick up the slack. No one can be in two places at once, and that’s why a team with support staff can be an advantage. But be certain to clarify that your primary contact will be the Realtor® you hired and not an assistant.
3. Preparing Your Home for Sale
Once you and your Realtor have addressed curb appeal, your aim is to make your interior appeal to as many buyers as possible. Neutralizing will achieve that. If you have walls that have been painted statement colors, you should consider repainting with a neutral color. Often sellers mistakenly believe a buyer credit enabling the buyer to select their own paint and flooring is the right choice. Purchasing a home is an emotional decision and buyers typically make up their mind within minutes. To get started:
- Depersonalize by removing photos, trophies, collections, etc. You want the buyer to feel welcome and able to picture themselves in your home; your Realtor can help you identify which items should be removed.
- Declutter closets, cabinets, countertops. Ideally you will consult with a home starter or an experienced real estate agent who will give you a punch list of simple things to do in order to sell your home for the highest price.
4. Determining Your List Price
Determining your list price involves both art and science. It requires objective research into comparable properties as well as instinct to gauge a buyer’s willingness to pay. The optimal price attracts showings and leads to offers. Unfortunately, the reality is that price is the primary factor influencing homebuyers’ decisions on which homes to view. Additionally, it’s crucial to note that while you and your Realtor establish the asking price, the buyer ultimately determines the selling price. The correct price will:
- Result in a quicker sale, with less inconvenience to the seller
- Expose the property to more buyers
- Increase Realtor® response
- Prevent your listing from getting “stale” or “shop worn”
- Increase the likelihoods of multiple offers and a bidding war
5. Mums the Word
You have no obligation to disclose your motivation to the buyer or their real estate agent. If your goal is to be in Boston by the end of the month, it is best to keep that information confidential and share it solely with your Realtor. Revealing your motivation to anyone other than your agent can potentially undermine your negotiating position.
6. Learn the Buyer’s Situation
Having knowledge about the buyers enhances your negotiating advantage. Do you know if your buyer has their home in escrow? Depending on the progress they’ve made, it can indicate their level of motivation. A buyer with limited cash reserves may face challenges in closing escrow if repairs are suggested by the home inspector. Additionally, remember that terms can hold equal importance to the price paid. For instance, a buyer who allows you more time to stay in your home after closing could be crucial for you. Questions to take note of:
- How qualified is the buyer?
- Has your Realtor reviewed their pre-qualification letter and talked with their lender?
- Has your agent verified the buyer’s down payment and cash reserves?
