Everywhere you turn, you are hearing or reading about the gloomy state of the economy and particularly the housing market. Some experts are saying that this year alone, more than 8 million American households will attempt to sell their homes – and fail. It is true that this is the toughest time to sell a home in many years. The statistics may be grim, however, in almost every neighborhood in every city and region, some homes are selling and beating the odds. A simple 4-step plan can put you on the good side of those statistics.
The most common problem sellers and agents are making in this new market is that they treat all properties the same. When you list your home with most agents, they or their company, attempt to market it to the same people and through the same avenues as every other property they list – if they market it at all. Your listing may be put into the Multiple Listing Service with a description that sounds like every other home, and placed in the same newspaper or website as every other listing they have. Homes are unique and will have unique buyers. The marketing needs to reflect that. A really good agent knows this and will market it accordingly. He or she won’t just do the basics and wait to “luck out”. If you and your agent follow these simple steps, your home will sell – even in this tough market.
Step One: Determine who the likely buyers are for your home.
Try to take all information regarding your home into consideration when determining this answer. Some items will be obvious while others are not. Consider your home’s neighborhood, school district, price range, age, size, number of bedrooms and baths, number of floors, style, level of finishes, cosmetics and amenities as well as what type of buyers are buying similar homes in your area. Now with all of these considerations, to whom does your home appeal? Keep this answer in mind while following the next steps.
Step Two: Increase salability to meet the needs of your most likely buyers.
With your buyers in mind, decide what your home needs to make it more salable. Although not all buyers are looking for the exactly same thing, the recent sales in your area will show prevailing themes for what purchasers are actually buying. Are they looking for a good deal on a fixer-upper or something that already feels comfortable? Does your home need staging, repairs, landscaping, a new deck or patio, an updated kitchen or appliances? Do they want it to be family-friendly or urban chic? Will they be looking to make a few changes or will they want it to be move-in perfect? Even though not all aspects of a home can be changed to fit someone else’s criteria, many can.
Step Three: Target Market directly to your most likely buyers.
Now that you know who your likely buyers are, you can determine how to reach them. What publications and on-line sites are they most likely to use to home shop? What keywords or pictures would they most likely want to see? You shouldn’t leave out any of the basics such as the Multiple Listing Service or local advertising and websites. But when describing your home, you or your agent should resist the urge to make it sound like every other home – fabulous in every way. Keep in mind what attributes would be most important to your buyers, even if it makes it unappealing to someone else.
Contrary to popular opinion, selling a home is NOT a “numbers game”. It is, in fact, a “find the RIGHT buyers” game. If you are trying to make your home desirable to all, you are most likely obscuring it from your best buyers. It should stand out to the them. You are more likely to sell your home with only a couple of showings to the appropriate people than with a hundred showings to people who are looking for something else.
Step Four: Determine a pricing strategy.
It is always important to have open and honest communication with your agent, however it is crucial when setting a list price. Many agents are too afraid of disappointing their client to tell the truth – especially when they’re afraid of losing the listing. A good experienced agent will be completely open with this information. Additionally, a cooperative seller needs to be open to hearing and considering the agent’s opinion, even if they don’t agree. Although there are many things to consider when pricing a home, there is a simple mathematical technique that is helpful to get started.
First, determine how many listings of similar properties are for sale in your market area. Second, find out how many closed sales of that property type there were in the same area in the last 90 days. Third, calculate the ratio, or percentage, of closed sales to active listings in the last 90 days. If there are 25 similar homes for sale and 5 have sold in the last 90 days, then theoretically, you need to be priced in the lowest 20% of the similar listed homes to sell in the next 3 months. Although this doesn’t take all things into consideration, it can be a great starting point.
Indeed, it is a difficult time across the country for home sellers. However, if you keep these 4 simple steps in mind, and work with an effective agent who understands these principles, you will soon become one of the success stories of this tough real estate market.
Source by Wes Walker
