Part 2 of our guide that will give you the tools you need to maximize your profits, maintain control, and reduce the stress that comes with the home-selling process. This article contains tips 5-10: Click here for Tips 1-4
- TIP #5 – Know when to get an appraisal.
Sometimes you can use a good appraisal to your benefit in marketing your home. And if you get a VA or FHA appraisal, you can use it to let prospective buyers know that your home can be financed. However, an appraisal costs money. It also has a limited life. And you may not like the figure you hear.
- TIP #6 – Your tax assessment means almost nothing.
Some people look to tax assessments to assign a value. The problem here is that assessments are based on a number of criteria unrelated to property values, so they often don’t necessarily reflect the true value of your home. Have you ever heard of two identical homes in the same neighborhood with dramatically different assessed values because one was purchased more recently than the other? Well, it happens quite often.
- TIP #7 – Find a good Realtor®.
Nearly two-thirds of the people who sell their own home say they wouldn’t do it themselves again, according to research by the National Association of Realtors®. Sellers surveyed point to difficulties in setting a price, marketing handicaps and liability concerns among the primary reasons they would turn to a Realtor® next time. And selling a home yourself usually eats up more time and effort than you might initially expect. Once you understand how much work it will be to sell it yourself, talk to a Realtor® you trust even if you decide to strike out on your own. Many top professionals are more than willing to help do-it-yourself sellers with the paperwork, contracts, etc. Plus you’ll have a relationship with an agent if problems do arise that require professional help. If you decide to work with a Realtor,® contact four or five—you probably met a few that you liked during your open house tour. Explain to each that you’re thinking about putting your home on the market and you’d like to meet to talk about pricing and marketing. By having this group “evaluation” done, you should end up with a fairly tight price range to help guide your decision. Any Realtor® who is substantially higher or lower than the group should be able to justify their estimate. Just as you should be concerned with too low of a price, beware of an agent who gives you the highest price—they may be trying to buy your listing. A good Realtor® knows the market and your neighborhood in particular. They will supply you with information on past sales, current listings, a marketing plan, something on their own background, and references from past clients. Take the time to carefully evaluate candidates on the basis of their experience, qualifications, enthusiasm, and personality. Most importantly, make sure you choose someone who is going to put in a lot of hard work on your behalf.
- TIP #8 – Give yourself room to negotiate.
Make sure you leave yourself enough room in which to bargain. If what you ask for is unacceptable to the buyer, and their first offer is unacceptable to you, then you better make sure you have someplace to go that is acceptable to you. Start with the absolute minimum price you would accept, then pick the price you’d get if the world were perfect. This gives you your range to keep in mind when working with your Realtor® to negotiate the sale. In setting your asking price, review your priorities. Do you want to maximize your profit or sell quickly? You’ll price high for the former and closer to market value if the latter is the case.
- TIP #9 – Maximize your home’s sales potential.
Each year, corporate North America spends billions of dollars on product and packaging design. The lesson here is that 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 its floor plan, but you can do a lot to improve its appearance. And you should. The look and “feel” of your home generates a greater emotional response than any other factor. You may price your home to sell, but a prospective buyer reacts to what they see, hear, feel and smell.
- TIP #10 – Rely on other people’s judgement as well as your own.
The key to effective marketing is knowing your product’s good and bad points. In the case of your home, accentuating the good can mean a faster sale for more money; failing to deal with the bad can mean months on the market and a lower-than-desired sales price. The biggest mistake you can make at this point is to rely solely on your own judgement. Remember this is your home, a place of fond memories. There are bound to be emotional issues that can impair your ability to make an honest assessment of your home’s strengths and weaknesses. In evaluating what improvements you can make, don’t be shy about asking others for their opinions. But make sure you’re getting an honest answer; some may try to spare your feelings, just what you don’t need. Fortunately, your Realtor® won’t be shy in discussing what should be done to make a home more marketable.
Please feel free to call Perry & Associates Residential Real Estate if you would like further explanation on any of these topics, or if you have any real estate questions at all. You can reach us at (318) 807-4663. To see what home prices are like in your neighborhood, visit our website www.perryresidential.com