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Price Your
House According to the Current Market.
Ask several agents
how much they can get for your house. If one gives you a much higher
price than the others, be cautious: the agent may be suggesting an
unrealistically high asking price. This practice is unethical and costs
you time and money. Interview at least three agents. They all should
back up the suggested listing price with comparable sales data.
Working with your agent, determine the
appropriate, competitive listing price for your house.
Traditionally, pricing your house 5% below
the price of the competition attracts more buyers. Some
sellers
shave 15
to 20% off the price and receive multiple bids. Sometimes buyers bid up
the price over what it’s worth. If you don’t want to risk, just price it
right to gain the attention of buyers. If getting less money for your
house is disappointing, think of the costs associated with maintaining
the house, if it sits on the market for several months at an unrealistic
asking price.
Further, if your
house enters the market overpriced, many buyers will overlook it because
it will be out of their range. By the time you reduce the price to fair
market value, many potential buyers will have already bought another
house.
If you want to get top dollar, you have to be the top
house in your neighborhood.
Check out your
competition and make sure you're ahead of the pack.
Make Your House More Marketable.
When a buyer sees your house for the first time, a critical first
impression is made. If applicable, maximize curb appeal by trimming
trees and planting flowers. A fresh exterior coat of paint might also
prove valuable.
If possible, buy at the paint store scent packets to add to the paint
before you paint the walls. As time goes by, they will gradually release
the scent. Consider neutral
colors for interior walls and carpets to make the rooms look larger.
Maximize the light in
your house. Open up blinds and draperies to make sure there's sufficient
natural light throughout the house, clean the windows, change the
lampshades, increase the wattage of your light bulbs and cut the bushes
outside to let the sun shine in.
Conduct a Full Home Inspection.
Potential buyers will cast an extremely critical eye over your
house and, in a situation when many houses are available on the market,
they may take a pass on a house that needs too many repairs. Be sure to
have the house inspection report available for prospective buyers
itemizing all of the repairs that have been made and the associated cost
for each.
Repair squeaky doors,
chipped or smudged paint, broken fixtures, etc. Remember that people
will look in your cupboards, under your sinks and in your closets. So,
organize your closets to show off storage space. The more space buyers
see, the larger the closet will look. Clear out excess items, and
organize the shelves to show off how much storage you have.
Pay particular
attention to odors. Before a showing, open up all of the windows and air
the house out. Boil cinnamon, bake cookies, bake bread — do anything you
can to have the air smelling fresh and clean.
Make potential buyers
fall in love with your house from the street by adding plants, flowers,
power-washing patios and walkways, weeding the garden and mowing the
lawn.
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You only have one chance
to make a good first impression. Make your entryway
welcoming by putting in a small bench, a vase of fresh-cut flowers or
some freshly baked cookies, if possible.
Your house needs to be
"show-ready" at all times – you never
know when your buyer is going to walk
through the door. Don’t leave dishes in the sink, keep the dishwasher
cleaned out, the bathrooms sparkling and make sure there are no dust
bunnies in the corners. It may be a little inconvenient, but it will get
your house sold.
If you’ve spent
time, money and energy transforming your house into your home, you may
be emotionally involved, and have sentimental feelings for your house.
However, what you think your house is worth shouldn't be a factor
in determining your listing price. Stay objective by focusing on
statistics generated by the CMA.
Don't be personally
offended by lowball offers. Think of them as the starting point of a
negotiation that could result in the sale of your house.
Make a
full-price counteroffer, if your comps can back it up. Approach each
offer as an opportunity to negotiate. Some motivated sellers offer
financial incentives that don’t require cash out of their pocket.
Offer a Sellers Contribution.
A seller can sweeten the deal by offering assistance to the buyer in
ways that do not require lowering the asking price. These tactics can
help your house to stand out from the crowd.
Cautiously consider some counteroffer strategies:
1.
Seller financing: You finance some or all of a buyer's mortgage.
2.
Offer to
pay
points to lower the buyer's interest rate. Buy down the interest rate on the buyers mortgage.
3.
Offer to pay a portion of the closing costs.
4.
Offer to pay off a buyers bills. Some loan
programs allow sellers to pay off the credit card debt or auto loans of
the buyer which will help him or her qualify for a better mortgage and
prevent the need to buy a smaller, less expensive house.
5. Prepay taxes or insurance for a
year.
6.
Cover the buyers mortgage payments for up to the first six months.
Depending upon the size of the mortgage, the buyer can save several
thousand dollars and the seller still gets the original asking price for
the house. It is generally more financially advantageous to do this than
dropping the asking price by $30k, $20k, or even just $10,000.
7. Many condos and houses across the country belong to homeowners
associations that require annual dues.
Paying the first years fees could be a big incentive to a buyer nearing
the limit of his or her liquid assets.
Offer a Home Protection Plan.
Houses with home warranties sell 15% faster, sell for a price 2.2% higher
and are 29% more likely to sell.* With so many houses for sale in the
real estate market, you need a competitive edge.
A Home Protection Plan
gives you that, while offering convenient, dependable service when you
need it most helping to protect you from the expense of unexpected house repairs.
A Home Protection Plan also applies to the house once sold, alleviating
the hassle of house repair for the buyer.
Properly priced houses that stand out from the competition are selling.
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