 |
|||||||
 |
|
|
|
|
|||
Why Isn't Your Home Sold? |
|||||||
Many properties on have been on the market for several months and in some cases, two years or more. If your home has been on the market more than six months, it is time to realistically evaluate why. Supply and demand should be kept in mind when pricing a property. However, there are four other factors which affect how quickly your home will sell in any type of market. These factors are location, price, condition and marketing. As a seller, you have control over all of these factors, except location. Does your home have a location which wouldn't appeal to most buyers? Does it abut something which negatively affects resale value? If so, you must discount your asking price. Price is the only way to offset negative features relating to location. The old adage that any property will sell at the right price is generally true. When pricing your home, you should look at two types of data. The first is a list of comparable properties in your area which have sold in the last six to twelve months. Calculate the average selling price of the sold properties. If you are in a "buyer's market" such as we have now, you should price your home about two to five percent above the average selling price. If your home has location problems, you may have no other choice than to cut the price of your home below the average selling price. The second type of data you should review is a list of competing properties. Determine how your home compares to others like it on the market. Buyers shop by comparison. They instantly recognize the better values and look at those first. They may never get inside of the overpriced listings because a better value caught their eye first. In respect to condition, if you are unwilling or unable to spend money to prepare your home for sale, then you must do two things: Discount the price and make sure the house is spotlessly clean. If you can spare the money, the highest return improvements include those such as having professionals clean the house (including the garage and cellar), upgrade the landscaping, apply fresh paint on interior/exterior (neutral colors), replace marginal roofs and decks, repair or install new tile work in bathrooms and replace worn out floor coverings in kitchen and baths. Remember that buyers often deduct more money for repairs than the actual cost. Lastly, marketing is a factor. If you decide to list your home with a real estate broker, make sure he/she is willing to prepare and execute a marketing plan for your home. What type of buyers would be interested in your home and how does the agent intend to find those buyers? Keep in mind that your listing broker works for you. Your broker is considered an agent; acting on your behalf As an agent, he/she has a legal obligation to expose the property to as many buyers as possible. The primary obligation of your agent is to act in your best interest in accomplishing the appointed task of finding you an acceptable buyer. One of the major ways listing brokers find buyers is through other brokerage firms. Over fifty percent of real estate transactions are cooperative sales with other firms. Your listing broker's fee policies should encourage all cooperating brokers, both seller brokers and buyer brokers, to show your property. Make sure your listing broker offers fee cooperation to buyer brokers. If not, buyers and their buyer agents may consider your property as less price competitive than others and are likely to move on without even seeing yours. About ninety-eight percent of listing brokers offer fee cooperation to buyer brokers so there is no need to settle for one who won't. Keep in mind another aspect of marketing. It isn't just about advertising. Although advertising is one tool, many homes get sold because of the networking ability of the listing agent. A good listing agent knows how to let people know about your property. In addition, do not forget about signs. Signs generate more calls than ads. Even though your home is listed with a realty firm, consider investing in a customized sign which would catch the buyer's attention. In summary, be objective about the pros and cons of your home and price it realistically. Carefully interview a listing broker. Make sure he/she has good marketing and negotiation skills; and be sure he/she offers competitive fee cooperation to all other firms. Wise and careful upfront planning will save you months of aggravation, minimize your risk and result in a higher selling price. Original text by Iva Liebert |
|||||||
|
|||||||
Bob Hillmer N96 W18221 County Line Rd. E-mail: Bob Hillmer |
|||||||
