Updated: Jun 5
Let’s start with a list of factors that do not really need to come into this discussion.
Your original Purchase Price
Chances are you paid market value. Markets change and today we have to deal with the current market condition which may have changed significantly since your purchase.
Improvements should be made for enjoyment, not for resale. You cannot add an item to a home, select it to your style, use it, then expect the buyer to pay the original cost.
The Owner’s Need for Money
The owner’s need for money or the fact that the owner is moving to a more expensive area where he/she will have to pay more for a home has nothing to do with the home’s current market value.
The Cost to Rebuild it Today
The Sellers Personal Attachment to the Property
(OVERPRICING CAN BE COSTLY)
You will lose the excitement that the new listing generates
Real estate agents are working buyers who have seen what is currently on the market and are waiting for something new to be listed. Therefore, the most activity will take place in the first 30 days of a listing. Your home will probably receive its highest and best offers during this time. After that initial period, the only people to look at your home will be new buyers in the marketplace.
You will lose the most qualified prospects
Buyers won’t be able to “make an offer” because they probably won’t see your property. They will view the properties that are priced within their purchase power range, knowing that they cannot afford anything above their price.
Overpricing helps sell other, more competitively priced homes first
Your home may be used to demonstrate the good value of other properties. Your objective should be to enter the market in a position that will attract prospects, not drive them away.
Your home may become stale on the market
Prospects may wonder why it has been on the market so long or if something is wrong with the property, even after you lower the price. You may even have to settle for less than the market value. A house takes on a reputation surprisingly fast, so don’t wear out your welcome on the market.
You lose a strong negotiating position when your house is on the market for a long time, both financially and mentally
Prospects will not “rush” to make an offer on an overpriced, and you may feel compelled to accept less when they finally do.
If you don’t get an offer, the contract may fall through because of appraisal problems:
The lender must justify the price to the market.
Is Your Price on Target?
The Selling Process – What to Expect
Prepare your home for sale
I will be able to give you a list of things that I think might help in getting your home sold as soon as possible. I also can give you names and numbers of people who I recommend that can mowing, painting, HVAC, Roofing, general repair work, and the list goes on.
Prepare your home for showings
At the time I list a house I will place a sign in the yard and a lockbox containing your house key on or around the front door. The lockbox is a device that allows only Agents in the board to enter your home for a showing. It digitally registers so we know who was in the house and how long they were there. The easier it is for an agent to show the house, the quicker I will be able to get it sold.
We will make our best attempts to collect data and feedback on showings as they happen. We attempt to call the showing agent and try and see what their client liked/disliked about the property. With this said at times it is difficult to obtain from the other agents. I can promise you we will make an attempt to get this information.
30 Day Recap
If your home is not sold in the first 30 days on the market I like to have a consultation, either over the phone or in person. By this time, I hope to have enough feedback and information, so we might be able to make our adjustments to get the property sold.
There are several things that can take place when an offer is presented to our office. I will present the offer to you by reviewing the contract completely. There may be some possible costs to you that the buyer requests you to pay as part of the contract. These include, but are not limited to: Closing Costs, Mortgage points, and decorating Allowances. At this point you will have to decide if you would like to accept the offer or counter it. You have the right to counter back anything you would like to on the contract. At that point, I will let the other agent know what changes have been made or that the offer is accepted and then that agent will then go back to their client and present the counter offer. You will receive a copy of the accepted contract when all changes are made, and signatures are complete.
There may be more than one offer if we are lucky. When this occurs, we will select the best offer and counter or accept that offer and reject the other offer. You cannot have two different offers out at the same time since the property could sell to two different buyers.
Your contract normally gives the buyer the right to a complete property inspection. They have an agreed upon amount of days (as listed in the contract) to complete these inspections and provide us with an inspection agreement listing the repairs they would like to have you complete before closing. You will have a set number of days to respond and negotiate these repairs with the buyers. This should give you enough time to check with the repair men to get a rough estimate on the cost of the repairs. You can agree to complete all repairs, a portion of them or none at all. The buyer can also accept the property “as-is”. After the repairs are complete you will need to provide receipts to the buyer when applicable. I will be happy to provide you with a list of contractors I use. Although this can be stressful I am here to help!
At this point, we are waiting for the buyers to complete all their financing and allow them to get everything to close!
Wood Destroying Insect Inspection
No Bugs – Yeah!!
However, if we have bugs we will have to have the house treated and any damage must be repaired. We will either fix the issues or we will renegotiate the sale of the house with the buyers.
All utilities should be switched over to the buyer prior to closing, they can be done just after closing if necessary. I always stress DO NOT JUST HAVE THEM TURNED OFF.
Closing Date, Time, & Place
I will call you as soon as the closing date, time, and place has been determined. If you know in advance of any prior engagements, please let me know as soon as possible so that there will not be any conflicts.
Final Walk Through & Inspection
You can expect a final walk through to be done on the house within 72 hours of closing. At the final walk thru make sure your home is clean and all agreed upon repairs have been completed. It is helpful to have receipts for all the repairs as well.