Home Selling Strategies for Today's Market |
The Metropolitan Regional Information Systems ( MRIS), our
regional multiple listing service documented 24,550 homes
were listed in Montgomery County in 2006. The number of homes
that actually sold last year was 13,523.
It only takes a minute to do the math- only 55% of the homes
sold. 45% of the listings were withdrawn, expired OR they are
still on the market.
Sales in 2007....
With this dramatic change from previous years, it is more important than ever for sellers in 2007 to realize that just listing your home does not guarantee a sale. Spring 2007 stats for Montgomery County, indicate that only 17% of the available listings sold that month. August 2007 stats show sales at a rate of 13%. We can expect the rate to further decline as we go into fall and then the holidays.
If you are serious about selling your home, you must be sure that your home is positioned in the top 10
% of the market place. To guarantee success, follow these suggestions:
« Price your home realistically. Realtors provide appropriate price suggestions but it is the SELLER that determines and sets the asking price. Unfortunately it is the BUYER alone that determines the selling price. Buyers just walk away from overpriced listings. An attempt to negotiate a better price is not even considered until you are with a 3% to 5% margin of the price the buyer is willing to pay. ( Average difference in list price and sales price in Montgomery County is 4% in 2007 compared 3% in 2006.)
Look at the neighborhood comps carefully. Don't assume that just because one house sold dramatically over market, that a new pricing level has been established. Don't concentrate on the highest or lowest price. Instead focus on the average price and then adjust according to the condition and amenities your home offers compared to the median range homes.
Establishing the correct value and pricing is the most important factor in your marketing program. All of the advertising in the world will not sell a home that is dramatically overpriced.
« Do what ever you can to increase "curb" appeal! Over and over again, real estate agents stress the issue of "curb appeal." We should be calling it EMOTIONAL appeal, and it doesn't stop at the curb. Time and again agents find that a strong emotional appeal can offset negative features and produce higher sales prices. Ask your realtor what you can do to create the "WOW" factor!
« Contact your chosen realtor, before you paint, replace carpeting or make substantial changes. Even perfect homes can use little showing expertise. Let your Realtor make suggestions about furniture placement, lighting, repairs, and perhaps even calling in a professional home staging decorator. Properly stages homes sell faster and for more money. It's worth it - every nickel you spend comes back in dollars. Staging is not about making upgrades or spending a lot of money. It's about rearranging, making space, improving functionality and above all.....creating a warm emotional response to the property. It's usually done on a shoe string budget.
« Save money and time by using contractors that Realtors recommend. If they have a referral list, those contractors are usually reliable and reasonably priced and have earned a good reputation.
« If possible, repair major items that would need maintenance within the next three years. Think about it... buyer's are spending the most they can possibly afford to purchase your home. Their new monthly payments will make saving for repairs difficult, and closing cost usually wipe out their savings accounts. If there is something in your house that they really need to fix, many buyers won't have the ability to repair it for several years!
«
Follow our suggestion lists for
staging tips and how to prepare for an open house.
Remember you are not just selling a house, you are selling a
"lifestyle."
See Home Staging
Tips
« Make realistic price adjustments if your home needs substantial work.
If the amenity list is short or your home needs updating or serious maintenance repairs, you will have to adequately adjust your price to compensate. What is "adequate"?
Unfortunately, buyers never calculate price reductions on a dollar for dollar basis. For instance, if it costs $4,500 to install a new roof, buyers will consider it a $6,000 reduction. They expect extra compensation for time & inconvenience.
If your home requires substantial maintenance and remodeling, you must then adjust your price to attract handyman or contractors. Handymen are looking for "$weat Equity". They just expect healthy discounts. Contractors, however, are attracted to the homes that need a complete makeover. Their interest is to make money by buying, remodeling and flipping. At this point, it has to be priced low enough to allow the investor to make repairs, pay for additional costs of a second settlement and still make money on the resale. That's a lot of overhead!
If your home needs work, it's more important than ever to call in your Realtor early. They can help make the value wise decisions on how to present your home, and recommend the most cost effective changes.
If you are considering selling your home, check out Ann's Marketing and Listing Services. She'll be happy to help you sell your home and show you how to make this market work to your best advantage.
See Ann's List
of Listing and Marketing Services
Make your home stand out in the crowd!
See tips for getting your home ready to sell