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Pricing your Property
Listing your home at the right price can sometimes be difficult as price range varies by the state of the market, the area and the condition of the home itself. When pricing your property effectively, you can see the results yielded from it. From buyers approaching your asking price to setting the stage for competing offers; the pricing can make all the difference from low end offers to high bids. Statistically the best chances of a well-priced property selling is within the first few weeks it’s listed. If your home doesn’t sell, applying an appropriate action plan and Marketing Plan will yield far better results.
Location plays a huge role in a seller’s price. Amenities can make or break a buyer’s decision, as certain areas may have amenities that cater to certain households while not really being a fit to others. For example, a family with young children might prefer nearby schools and parks; while an older couple wouldn’t be aiming for those amenities in their area. Desirable amenities are varied upon the buyer, but lots of them still provide positive value overall to your property. Desirable amenities include malls, public transportation, gyms and schools just to name a few. Areas with consistent development within a decent radius of the home can also help add value, as it exemplifies constant growth within the community. However, developments can also have negated factors, it all depends on how the area is affected by the development at hand.
Size, age, style, layout, and general construction quality are just a few of the physical and structural factors that affect your home's worth. The lot's shape, size, landscaping, and privacy can all influence home pricing. The state of the home also affects the selling price. To maximize market value, all major infrastructure components such as HVAC, electrical, plumbing, and other critical systems must be in good working order.
Overpricing is a common mistake made by inexperienced home sellers, and it is the leading cause of a listing's demise. Not only does overpricing a home prolong its unsold time, but it also drives buyers to competing homes. By overpricing a home, you help the homes that compete for your buyers' dollars. Sellers use emotion to determine what they hope to gain from the sale of their home. Sure, this is your home and has been for a long time. You've made significant changes to suit your tastes and needs, and spent a lot on maintenance and repairs. You may feel justified in asking the price you want because you believe the house is worth it.
Unfortunately, any residential property is only worth what the market will bear. Your home will become the pariah of the neighbourhood as interested buyers flock to other homes in the same price range that are better maintained and have more amenities, or homes that are very similar to yours but listed at a lower price. Many sellers regret turning away this important buyer group. One of the most foolish real estate selling strategies is to overprice then underprice to attract attention. That only attracts negative attention, as it shows desperation, leading some buyers to believe there must be something wrong that you're trying to hide.
Buyers Can Be Unqualified for Overpriced Properties
Consider that if you find a buyer willing to make an offer close to the overpriced listing price, the deal may fall through because the overpriced property cannot possibly appraise for that price. This can drastically alter the ratios the bank is willing to lend to that buyer, turning an assured mortgage funding into a turn-down. A property priced even a few percentage points above market value tends to languish on the market for an inordinately long time. The level of overpricing and the length of time the listing is on the market are directly proportional. A home that is 10% above market value may take four times as long to sell as a home that is 5% above market value. Underpriced residential properties are usually distressed, or when the seller is highly motivated to sell the home quickly, due to an impending move out of town, or a family issue.
Marketing Plan Preparation
First Time Buyers
Since most renters are single women, it follows that most first-time home buyers are too. What a single woman seeks in a home is usually the polar opposite of what a single man seeks. A house with a "man cave" will be derided by a single female buyer. Most women prefer clean, well-organized homes with attention to decor and detail. Single women value curb appeal and seek homes that evoke feelings of warmth and comfort. Keeping in mind the economic realities many single women face today; a plethora of amenities may be viewed negatively. The single female seeks an affordable home with few frills.
These buyers have children and entertain larger groups than other demographics, so they value open floor plans with large open areas and great rooms that can be used for multiple purposes. Large, well-equipped laundry rooms and kitchens, connected bathrooms (one bathroom accessible from two bedrooms), fenced backyards, and a home situated far enough back from a low-traffic street, such as a cul de sac, are all desirable features for families.
Due to the need for dual income, this buyer type can live in smaller spaces. They want a home that is well-maintained, private, and easy to maintain. These buyers avoid large elaborate yards and maintenance-intensive features like swimming pools. A separate master bathroom is preferred, with twin sinks. Working couples also require larger closets and extra storage space.
Older couples are looking for a place to unwind after decades of work and parenting obligations. This group dislikes interior or exterior spaces that require constant maintenance and will not hire someone to do it for them. A home with security features, alarms, and a low crime area will appeal to Empty Nesters. Understanding your target market's needs and preferences increases your chances of providing exactly what they want.
A listing agreement is required when selling your home. The listing agreement allows the brokerage to market and sell your home. These agreements should be in writing to protect all parties' interests.
In fact, the Real Estate and Business Brokers Act of 2002 contains several provisions relating to agreements. An agreement must state the effective and expiration dates. The agreement must specify the brokerage's services and the commission or other fees due the brokerage, as well as how these fees will be paid. Consumers should be aware that RECO, government agencies, real estate associations, and boards do not set or fix commissions.
Your broker or salesperson wants to help you with the sale of your house. Clarify your needs and expectations to get the most out of this relationship. To avoid future misunderstandings, don't make assumptions. Describe all of the services offered. Clarify the fees and costs associated with these services in the written agreement. Ask the broker or salesperson what they expect from you and what your obligations are. Remember that you are authorising the brokerage and the salesperson to represent your interests in the sale of your home. The contract binds you and the brokerage. The brokerage will send you a copy once all parties have signed. If you do not sign an agreement, the brokerage must still outline the services it will provide you.
Open houses appear to be losing favour in the real estate industry, but that is far from the truth. Open houses are not designed to sell houses outright; rather, they are designed to attract real estate agents. When other agents visit your home during an open house, they can learn more about its features and benefits than they could from an online listing. Educating these real estate professionals on why your home is unique and a great value in the market allows them to excite potential buyers.
Not uncommonly, a prospective buyer will fall in love with a property at an open house and immediately make a reasonable offer. Consider an open house as a chance to excite both real estate agents and potential buyers, and you will see the value of holding the best open house you can. When planning an open house, make sure all the details are perfect and your property is shown in the best light.
Fresh flowers add to the visual appeal of the house. Order Flowers for your open house at www.essencfloral.ca
One of the old real estate agent tricks is to bake loaves of bread or trays of cookies and leave them in the oven all day. Their scent fills the house, making buyers feel "at ease" as soon as they walk in. These tips and tricks can really help create a memorable and positive experience on the buyer!
If your home needs work, do it before you put it on the market. A buyer will not visit your home if a plumbing or electrical van is parked in the driveway or shingles are being removed. Never show a buyer a flaw and say you'll fix it. Fix it first, then it's no problem.
· A little paint can hide a water stain or a scuff mark. Your home should look freshly painted, enticing buyers to visit.
· Don't overspend on home improvements. Your home is ready for sale if it is clean, tidy, and in order.
· Kitchen and bath must be spotless. Don't just toss everything in the cupboards; buyers will look there. Clear it out and get rid of extras.
· Make sure all of your lights work, and consider switching to energy-efficient CFL bulbs. Green-minded buyers will take note.
· Carpets should be professionally cleaned rather than replaced.
· Replace or repair any torn or flapping linoleum or tile. You don't want a buyer to notice.
· Ensure all doors and windows open and close properly.
· If you have pets, especially indoor cats, change the kitty litter frequently, even daily. Many buyers notice it as soon as they enter. Prevent your dog from jumping up on or biting customers!
· Curb appeal is vital as it is the first thing buyers see. Make sure the house's exterior is clean and tidy. Get rid of all your junk and broken patio furniture.
· Make sure your pool or spa is sparkling clean, and your lawn and garden are in tip-top shape.
· Focus on the front door. Polish and re-paint the hardware. Make sure the mechanisms work smoothly and accurately, or a buyer will be disappointed.
· Remove any plaques or shingles bearing your family's name. Customers want to see themselves in the home.
· The Chinese art of Feng Shui teaches that clutter must be eliminated, so clear away all your knickknacks and junk to leave the buyer looking at clean, open spaces.
· Neutral colours and a style that blends into the neighbourhood are preferred over quirky, individualistic features that turn off most buyers.
· Depersonalize your home and see it as an asset to be maximized. Avoid letting emotions and memories cloud your judgement.
Don't overdo renovations, do what it takes to keep your house primed rather than completely redesign. Keep in mind that a little elbow grease and a modest investment may be all your home needs to shine and maximize the value of the offers presented.
Avoiding Legal Issues- Hire Professionals
A residential real estate transaction can seem like a maze of details, so it's important to educate yourself on as many as you can. Real estate law issues are particularly complex, ranging from basic concepts to minute details that, if mishandled, can cause major issues.
Without competent, experienced, and reputable legal counsel, you are unlikely to succeed in this complex process. But even the best lawyers are human, and even the best intentions can lead to legal mistakes. Despite increased regulation of the profession, legal errors still occur, and when they do, they can be very difficult to deal with.
Legal errors can be minor, such as incorrect wording, or major, such as failure to protect you from buyer fraud, embezzlement, or other damaging behaviour.
The home inspection and survey clauses are common sources of legal errors. If these clauses are not clearly defined, a buyer who changes their mind can withdraw an otherwise acceptable offer. When a buyer walks away due to a minor flaw that can be fixed for a few hundred dollars, or a thousand or more in the case of a survey clause, the buyer can demand that the seller complete a completely new survey of the property.
The Process of Selling Your Home
The complicated process of selling your home involves large sums of money, strict legal interpretations, and unexpected situations. A successful real estate transaction requires planning, savvy, patience, and reliance on established, reputable real estate and legal experts who can assist and support you in tackling the myriad details.
Before you list your home, you must do a thorough evaluation that involves changing your perspective on your home. You know its quirks, benefits, and drawbacks because this is your home. A total stranger visiting your home for the first time (or even visiting your neighbourhood) will have a completely different perspective. They might miss important features you take for granted and focus on a minor cosmetic flaw you know is irrelevant and easily fixed. Your property must also be tweaked to appeal to the current buying market taste. While kitchens and bathrooms are always the top priorities for prospective home buyers, buyer preferences vary based on price. In a one-bedroom duplex, a buyer's expectations are likely to be quite different than in a six-bedroom golf course bungalow.
Even if you've lived in your home for years or decades and know the neighbourhood well, it's a good idea to walk or drive around it as a prospective buyer. If you look at your neighbourhood objectively, you will see it in a new light. Your area's major selling points will be highlighted, both positive and negative. This will give you an insight into your potential buyers' decision-making process. If you see a problem in your neighbourhood, such as graffiti on a wall or an unkempt or abandoned property, you should speak up and let the community know. After all, your potential buyers will notice the parked cars or the trash along the fences and adjust their offers accordingly.
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