Home selling strategy Archives - Page 10 of 14 - Real Estate News and Commentary

September 26, 2014November 23, 2021

Don’t leave money on the table

A nagging concern that is often expressed by many home sellers is that they are leaving money on the table; in other words selling for too little. The dilemma often presented to a home seller is that if the home is priced too high, then there is risk eliminating potential home buyers; while at a lower price, there is risk selling at a less than desirable price.

Pricing a home is both a science and art. Skilled agents employ mathematical formulas as a foundation upon which to build a case for a range of sale price (the science); as well as demonstrating their ability of making price adjustments for variations in improvements, updates, as well as intangibles (the art).

But it may not necessarily be your home’s list price that can set you up to leave money on the table. Examining how your home is marketed, as well as your motivations and reasons for selling may reveal a weakness in your negotiation position as a result of convenience.

Selling a home can be disruptive to your daily life; and the prospect of having people, whom you’ve never met, traipse through your home can be unsettling. The typically limited and highly targeted private placement or pre-listing marketing may offer the convenience of limiting buyer traffic to your home, but its appeal is sometimes promoted to increase the potential of the agent receiving both sides of the commission.

Before you agree to a marketing plan that promises exclusive home buyer targeting; consider that many experts make the argument that you can leave money on the table when limiting your home’s exposure to potential buyers. In a world where everything and everyone seems electronically connected, you can increase the buyer pool by taking advantage of every reasonable marketing opportunity (including the internet and local listservs, and electronic bulletin boards, and other acceptable marketing tactics).

The process of selling a home can also be emotional and time consuming; more so if you’re divorcing and selling marital property, or selling your parents’ or grandparents’ home (sometimes because of a move to an assisted living facility or to settle an estate). The convenience of a quick sale can be very tempting; but can also set you up for selling for too little. And if the home is in need of repairs, updating, and renovations, the pricing can be unclear and inaccurate adding to the pressure for a quick sale.

You might even be considering responding to an ad promising a fast home sale without real estate commissions, repairs or home inspections – which is alluring to be sure. However, consider that many of these operations are seeking to purchase homes at a fraction of retail value minus repair costs.

Unfortunately, there is no “real time” measure to determine if you’re selling your home for too little; and some home sellers often lament in hindsight selling at a lower price out of convenience. However, a little homework and investigation can at least better your negotiating position. Ask questions and understand the purpose, benefits and limitations of a private placement or pre-listing marketing. Additionally, you can get pricing guidance from a market analysis, obtained from at least two (three is better) neighborhood real estate agents. And finally, weigh the pros and cons of selling out of convenience to the process of selling on the open market (listing the home in the MLS).

Original published at https://dankrell.com/blog/2014/09/26/dont-leave-money-on-the-table/

Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

September 12, 2014November 23, 2021

Getting home buyers into your listing – sellers and agents take note

Some economists have discussed how consumers are increasingly “shopping” rather than buying. And this is evident in the housing market, where home buyers have become overly discerning about their purchases. After what seemed to be a brief seller’s market, we find ourselves slipping back into a buyer’s market; and an old dilemma is reemerging: how are you going to get more buyer traffic and more offers on your home?

If your home has been on the market for while, check with your agent to review feedback from those who visited your home. Typical responses focus on price, home condition, and how the home shows. If you’re about to list your home, have some neighbors and friends tour the home (as if they were home buyers) to provide an alternate perspective of your home’s selling points and shortcomings.

Pricing your home correctly is critical to selling in a reasonable time frame. Your agent should keep you up to date with neighborhood sales activity, so you can remain competitive with other relevant listings. Recent neighborhood sales trends (1-3-6 months) can indicate where your price range should fall, as well as understanding the types of homes that are selling.

One of the main objections you may have heard from home buyers, is that your home “needs work,” which has a number of meanings. Of course, it may mean your home does need updating and/or repairing; in which case you should discuss with your agent about the possibility of making updates/repairs, and/or adjusting the price to reflect any needed updates/repairs. Before you decide to go all out on a renovation, consider making updates that are equivalent to your neighborhood and price range; over spending may not significantly increase your home value. If your home is updated and shows well, another meaning of “needing work” comes from the buyer wanting a turn-key home; and your updates/renovations do match their tastes and preferences.

Another issue to consider is that although your home may be updated and clean, you just may have too much stuff! Lots of furniture, wall hangings, and other stuff can make large rooms feel cramped and small, as well as give a busy and unsettling vibe. If this sounds like your home, consider removing items that can distract and detract from your home’s true elegance and style.

If your home is not getting many showings, another factor to address (independent of price, condition and clutter) is how your home is marketed. If you haven’t done so, look at your MLS listing; are you satisfied with the pictures, and remarks? Keep in mind that about 96% of home buyers search online and make decisions based on what they see and read. Home sellers, like you, are savvy and know that solely hanging a sign and posting a MLS listing is no longer acceptable to market a home. Ask your agent to update you on active marketing efforts, as well as other resources that may be used to market your home, including: local and global networks of agents and buyers; as well as using the internet and SEO (search engine optimization) to get buyers interested in your home.

If you’re home has been on the market for a while, you might consider addressing any of these issues to boost home buyer activity. If you’re considering a sale in the near future; have a plan of action before you list, so your sale does not languish.

August 30, 2013July 4, 2019

A glimpse into home buyer and seller behaviors

Buying and selling a home can be one of the most expensive and complex transactions you may undertake in your lifetime. Many are increasingly seeking assistance from real estate agents; according to the Highlights of the 2012 National Association of Realtors® Profile of Home Buyers and Sellers (realtor.org), eighty-nine percent of home buyers purchased their home through a real estate agent (a substantial increase from the sixty-one percent who indicated they purchased through an agent in 2001), while eighty-eight percent of sellers listed with an agent.

If you plan to hire a real estate agent, conventional wisdom dictates that you should interview several before choosing an agent. However, the logic is countered by the survey results. Approximately two-thirds of home buyers and sellers only contacted one agent. Additionally, a majority of buyers and sellers reported that the top means of finding their real estate agent was through a referral from a friend or family member. Forty percent of home buyers and thirty-eight percent of sellers found their agent through a referral from a family member or friend. First time home buyers were most reliant on their friends’ and family members’ referrals.

Repeat business was also a frequent way indicated in choosing a real estate agent. Although ninety percent of home buyers and eight-four percent of sellers reported that they would work with their agent again in the future; only twenty-three percent of home sellers and ten percent of buyers reported that they had worked with their agent in the past.

The internet is increasingly viewed as an important source of information for home buyers. Ninety percent of buyers surveyed indicated that they used the internet for their home search; the percentage rose to ninety-six for buyers under the age of 44.

Ultimately, your home purchase or sale falls upon the experience and skill of the agent you hire. Because of the increase in specialized transactions (such as short sales, 1031 exchanges, etc), it is probably a good idea to find out if the agent has the experience if your purchase or sale falls in this category.

A recent research study by Bennie Waller and Ali Jubran (“The Impact of Agent Experience on the Real Estate Transaction.” Journal of Housing Research 21, no. 1 (2012): 67-82) highlights the notion that an experienced agent can yield a better result than an inexperienced agent. They concluded that hiring a “veteran” agent will have a positive effect on your home sale. The data indicates that “rookie” agents, those who have had their real estate license two years or less, sell homes for less, take longer to sell homes, and are less efficient during the process.

Asking friends and family for referrals as well as calling the agent you previously worked with is a good way to find a real estate agent. However, vetting out potential issues can be achieved by asking the right questions before you hire them.

Regardless of how you find your real estate agent, it is probably a good idea to find out more about them. A conversation about their experience, knowledge, and expertise is probably a good way to start. Additionally, knowledge about the local market is extremely important these days as market trends have become hyper-local. Not understanding the neighborhood market can lead an agent to over or under price a home.

by Dan Krell
© 2013

August 16, 2013July 3, 2019

Challenges of selling a home during the summer

If you were selling your home several years ago, you might have been thinking of ideas how to attract home buyers to your home. Even though the feeling today is such that you don’t have to do much to sell your home, some home sellers are shocked to find out that there is more to selling today than just putting a sign up in the yard – and summertime selling poses additional challenges.

First, get the price right. As I wrote earlier this year, pricing a home is extremely important even when there appears to be a positive selling cycle. Even though you decide on the list price, you have to be realistic about your home’s value; your real estate agent can assist you in deciding on a list price by preparing a market analysis with recent (within the last six months) neighborhood homes that are comparable to yours.

Next, remember that de-cluttering is the foundation to your home’s presentation. Whether you are a pack rat or a neat freak, chances are that your home could use some de-cluttering. De-cluttering shouldn’t be thought of as getting rid of everything you don’t need in the home, but instead could be thought of as a way to neutralize and free up space to allow home buyers to imagine how they could live in the home.

Another factor to consider during a summer home sale is your home’s curb appeal. The basics of curb appeal include attending to the home’s landscaping and grading, siding, deck, driveway and sidewalks.

We tend to get lazy about tending to the yard during the hot and humid summer months; however, if you’re planning a summer sale, it is not the time to let the lawn and weeds overgrow. Simple landscaping can make your lawn appear manicured. Trees properly trimmed away from the home will allow your home to be seen from the street as well as not be “crowded” by overhanging limbs. Neatly trimmed and properly placed shrubs and flower beds will not only look beautiful, it will enhance your home’s façade. Also, check that the grading around your home diverts storm water away from the foundation. Hiring a professional landscaping company to tend to your yard is the way to go if the heat and/or activity pose a health hazard.

Take a close look at the exterior of the home. If the exterior does not need painting, look for areas that may be peeling or bare. Decks, fascia boards and window trim are often made of wood and typically need more attention (even if your siding is made of brick or artificial materials). Consider having the deck and siding power washed to remove dirt, algae or mold. Additionally, resealing the deck and other exterior wood trim enhances the home’s curb appeal.

Sidewalks and driveways are often given the short shrift. Cracked sidewalks and driveway are not only unsightly, they can also be a trip hazard. Repairing and/or sealing the walkways and driveway can not only increase safety – it can improve the appearance of your home.

Finally, how cool is your home? An air conditioning system that does not keep your home cool is a buyer deterrent – especially in the hot summer months. If you don’t have the air conditioning system serviced on a regular basis, you should consider doing so before listing your home this summer.

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by Dan Krell
Copyright © 2013

This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.

August 8, 2013July 2, 2019

Amazon and real estate – will Bezos’ vision change marketing of home listings

The big news this week is of course Jeff Bezos’ purchase of the Washington Post. Why would the man who predicted the demise print media pay $250 million for a regional newspaper and a handful of associated local papers?

If the real estate business is a window into how media plays a role in the daily lives of the average American, then Bezos’ purchase might be a head scratcher. Over the last five years, the National Association of Realtors® annual Profile of Home Buyers and Sellers (realtor.org) has demonstrated how the internet has increasingly played a role in how home buyers actively searched for homes. In 2007, the Profile of Home Buyers and Sellers indicated that about 60% of home buyers completely relied on the internet to search for their home, while about 21% did not use the internet at all in their search. Compare those statistics to the 2012 Profile, which reported that 90% of home buyers used the internet to search for homes; and home buyers who were younger than 44 years of age, the use of the internet is reported to be 96%!

It seems as if home buyers relied on the weekend real estate sections of the paper for a leg up on new home listings and open houses. Real estate agents and brokers happily paid to have their listings included in what seemed to be the weekly catalog of homes for sale. In addition to the home listings, print real estate sections also included other related information (such as decorating, renovation, and buying/selling tips).

However, as the NAR’s Profile of Home Buyers and Sellers indicated, there was a sharp increase in the reliance of the internet to search for homes from 2007 -2012. The time frame is no coincidence; besides the exponential increase in technology and computing power during this period, it also covers the housing bust and subsequent foreclosure crisis. This was a time of tight advertising budgets and the search for efficient advertising modes; the internet offered a bigger bang for the advertising dollar, offering a more robust real estate platform than print could ever offer.

And although there was a colossal increase in the reliance of the internet for real estate listing information in the last five years, there was a consolidation and reorganization of online real estate content during that time frame as well. As the housing market declined in 2007, many sites stopped syndicating their own content and instead partnered with one of the high profile, well organized real estate portals.

It might seem as if the purchase of the Washington Post by an internet visionary who had once foretold the death of printed news might be confusing. But if you understand the Amazon.com business model and how it revolutionized the purchase and delivery of print and recorded media, you would not speculate that the purchase of the venerable news organization was to expand an internet empire to the newsstand – but rather you might believe that the purchase was to acquire a widely recognized brand that generates a considerable amount of content that can be packaged and sold through Bezos’ established model.

Just as the internet revolutionized real estate content and home listings, you might imagine how Bezos’ novel news paradigm could increase the robustness of content and distribution of home and open house listings.

This article is not intended to provide nor should it be relied upon for legal and financial advice. Using this article without permission is a violation of copyright laws.