Steps to Selling Your Home
Recognize every market is different
Your state, town or neighborhood could dovetail with national numbers or buck the trend entirely. "There really is no national market," says Sambrotto. "There's a patchwork of regional markets." Never rely solely on one person's advice or opinon. Talk to a handful of professionals, do your own research and listen to your gut instinct. Choose the Tulsa Realtor best suited for your needs.
Get your home inspected
"Before I would even call a real estate agent, I'd have my home inspected," says attorney Diana Brodman Summers, author of "How to Buy Your First Home." Some real estate agents advise against spending the money (most basic inspections range from $200 and $400, according to a 2004 survey from the American Society of Home Inspectors), because the buyers will get one anyway prior to closing. Others recommend it, because it gives sellers an early warning on any repairs they might have to make. But in this market, it's better to be proactive, says Summers. "I would rather know what the inspector is going to find and be able to fix it -- and pick who will fix it," she says. Her method also allows you to shop around for the best price instead of perhaps paying an inflated price later on.
Shape up before marketing
A buyer's market means you've got more competition. "You want to put your best foot forward," says Eric Tyson, co-author of "House Selling for Dummies." If your home isn't appealing and in good repair, potential buyers won't even stop. Some sellers feel it's OK to skip this step and take less, but if the house is not appealing you may not get the chance to negotiate. "Six weeks before you want to put it on the market is a great time to get it done," says Summers. You don't need to renovate, but make sure everything looks great and works well. There are some things you can do to make your home stand out:
- New paint. Paint the whole house, if it needs it, or just the trim, shutters and door to freshen up.
- A clean entry way. Sweep or pressure-wash the front walk and porch. Polish the outdoor metalwork, clean the windows and glass and replace any burnt-out bulbs in outdoor lighting. And, if you can, add planters with flowers.
- Lush landscaping. Think new mulch, sharp edging, a healthy lawn and beds of flowers.
- "Maximize your chances of people being excited about your listing when it hits the market," says Tyson.
Devise a marketing plan
Do you want to use a real estate agent or would you rather sell it yourself? If you try doing it yourself, set a time limit after which you want to enlist the aid of a professional. Selling it yourself can save you the real estate commission which can be an advantage in a tight market. But a buyer's market (or rapidly changing market) is also a good time to have a little professional expertise to price, market and move your property. And don't forget, potential buyers may feel that if there's no agent involved the price should already be 6 to 7 percent less. Both the buyer and the seller can't save the same 6 to 7 percent.
Check into company relocation assistance
Are you moving to take a new job or position? If so, the company might offer some resources to make things easier. Some companies will even provide a list of real estate pros who will work with you at a discount. If you're selling in a tight market, every little bit helps. Best source: call your human resources department.
Interview real estate agents
If you're interested in using an agent, interview several early on about listing your home. Ask them for their advice. What would they highlight about your home? What would they change before it goes on the market?
Get a detailed marketing plan from your prospective real estate agent. In what manner do they plan to market your home? Does their marketing mix include print advertising, television and internet marketing?
Ask for references. It may be an advantage if they've worked in your neighborhood, in your price range and if they have a track record of successful sales. On the flip side, many newer agents are more technilogically savvy and eager to prove themselves. Gather as much information as possible, and hire the Realtor with whom you feel the most confidence.
Set a realistic price
The rules are different in soft markets. You don't overprice your house 20 percent to leave wiggle room for negotiating. While that kind of strategy might never be a good idea, it can really backfire in 2007. If your property is overpriced 20 percent, the buyer's agent may not even show it to their clients. Again, it's not a matter of being willing to negotiate. If your price is too high, potential buyers may not even look at it. And they may very well see a negative message in such a high price. Those who overprice their homes in this market are wasting everyone's time.
Pricing is strategy. And much of it comes down to just how motivated you are to sell -- or how quickly you have to leave.
Two more points to consider:
- Modern technology. Agents and buyers are often using computers to search for properties. If you want to sell yours for around $400,000, consider listing it at $400,000, rather than $399,999. That way, a computer search of anything between $375,000 and $400,000 AND a computer search of anything between $400,000 and $425,000 will include your listing.
- Commissions aren't add-ons. Don't add the real estate commission to the value of the home to come up with your asking price. If you use an agent, the fee comes out of your share of the profits. Otherwise, you're going to get penalized for overpricing your house. Agents are commonly looking at four to six months to sell a property and so their marketing expenses are now running higher than normal. This makes them hesitant to offer any discounts in commissions.
Understand your price
While you don't want to undervalue your house, many sellers today won't make as much as neighbors who sold last year. If you have your heart set on a certain amount, and find out that houses aren't selling for that, you may "have to change your mind and sit on the house.
Get rid of the junk
This year it's more important because buyers are going to be more fussy. Buyers are going to come in with high expectations. Throw things out, ship them early or rent a storage locker. But clear out that clutter. Buyers look for space and light. To show it off, you need to be able to tour a group comfortably through the house, as well as actually walk into those "walk-in" closets.
Stay on top of the market
You must be aware of market changes, which is one reason experts recommend using an agent. Stay on top of what is happening with mortgages and finance rates, keep looking at comps and see trends before they happen. The real estate market is still in a time of correction. You have to be so careful with both buying and selling.
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