Selling your home is one of
the most important steps in your life. This 9-step system
will give you the tools you need to maximize your profits, maintain
control, and reduce the stress that comes with the home-selling
process.
1.) Know why you are
selling and keep it to yourself.
The reasons behind your decision
to sell affect everything from setting a price to deciding how much
time and money to invest in getting your home ready for sale.
What’s more important to you: the money you walk away
with, or the length of time your property is on the market?
Different goals will dictate different strategies.
However, don’t reveal your
motivations to anyone else or they may be used against you at the
negotiating table. When asked, simply say that your housing
needs have changed.
2.) Do your homework
before setting a price.
Settling on an offering price
shouldn’t be done lightly. Once you have set your price,
you’ve told buyers the absolute maximum they have to pay for
your home, but pricing too high is as dangerous as pricing too low.
Remember that the average buyer is looking at 15-20 homes at the
same time they are considering yours. This means that they
have a basis of comparison and if your home doesn’t compare
favourably with others in the price range you’ve set, you won’t
be taken seriously by prospects or agents. As a result, your
home will sit on the market for a long time and, knowing this, new
buyers on the market will think there must be something wrong with
your home.
Do your homework (in fact, your
agent should do this for you). Find out what homes in your
neighbourhood have sold for in the past year and research what current
homes are listed for. That’s certainly how prospective
buyers will assess the worth of your home.
3.) Find a good
real estate agent to represent your needs.
Nearly three quarters of homeowners
claim that they wouldn’t reuse the Realtor who sold their last
home. Dissatisfaction boils down to poor communication which
results in not enough feedback, lower pricing, and strained relations.
When choosing an agent, make sure they guarantee their service and
performance in writing. This way, if things don’t work
out, you won’t be locked into a lengthy contract. Also,
have the agent explain their detailed marketing plan in full.
Finally, ask the agent what they can do for you that no other agent
can.
4.) Maximize your
home’s sales potential.
Each year, corporate North America
spends billions on product and packaging design. Appearance
is critical, and it would be foolish to ignore this when selling
your home.
You may not be able to change
your home’s location or floor plan, but you can do a lot to
improve its appearance. The look and feel of your home generates
a greater emotional response than any other factor. Clean
like you’ve never cleaned before. Pick up, straighten,
unclutter, scrub, scour, and dust. Fix everything, no matter
how insignificant it may appear. Present your home to get
a "wow" response from prospective buyers.
5.) Allow the buyers
to imagine themselves living in your home.
The decision to buy a home is based
on emotion, not logic. Prospective buyers want to try on your
home just like they would a new suit of clothes. If you follow
them around pointing out this improvement and that, or if your decor
is so different that it’s difficult for a buyer to strip it
away in his or her mind, you make it difficult for them to feel
comfortable enough to imagine themselves an owner.
6.) Make it easy
for prospects to get information on your home.
You may be surprised to know
that the two marketing tools that most agents use to sell homes
(open houses and classified ads) are actually not very effective
at all. In fact, less than 3% of people purchase their home
as a result of calling on a classified ad, and less than 1% of homes
are sold at an open house.
Furthermore, the prospects calling
for information on your home probably value their time as much as
you do. The last thing they want to be subjected to is either
a game of telephone tag with an agent, or an unwanted sales pitch.
Make sure the ad your agent places for your home includes an Internet
site where prospects can view a Virtual Tour which gives buyers
access to detailed information about your property day or night,
7 days a week. I have found that a greater number of buyers
are willing to view a Virtual Tour on their computer than play telephone
tag with an agent. And remember, the more buyers you have
competing for your home the better, because it sets up an auction-like
atmosphere that puts you in the driver’s seat.
7.) Know your buyer.
In the negotiation process, your objective
is to control the pace and set the duration. What is your
buyer’s motivation? Do they need to move quickly?
Do they have enough money to pay you your asking price? Knowing
this information gives you the upper hand in the negotiations because
you know how far you can push to get what you want.
8.) Make sure the
contract is complete.
For your part as a seller, make
sure you disclose everything. Smart sellers proactively go
above and beyond the laws to disclose all known defects to their
buyers—in writing. If the buyer knows about a problem,
they can’t come back with a lawsuit later on.
Make sure all terms, costs,
and responsibilities are spelled out in the contract of sale, and
resist the temptation to diverge from the contract. For example,
if the buyer requests a move-in prior to closing, just say no.
Now is not the time to take any chances of the deal falling through.
9.) Don’t move
out before you sell.
Studies have shown that it is more
difficult to sell a home, which is vacant—it looks forlorn,
forgotten, and simply unappealing. It could even cost you
thousands. If you move, you’re also telling buyers that you
have a new home and are probably highly motivated to sell it in
a hurry. This, of course, will give them the advantage at
the negotiating table.
