As a homeowner, you can play an important part in the timely sale of your property. When you take the following steps, you'll help your Preferential Properties Sales Associate sell your home faster, at the best possible price.
Don't forget to ask your Realtor for the average selling time of homes in your area. This is an important number as it can have a bearing on the price you decide upon. Average Days on The Market (DOM) are readily available figures for your Realtor and can be applied to your home fairly easily.
If the average, for example, where 120 days and you needed a sell within 75 days, you may need to speed up the time it takes to find a buyer. Four factors will affect the actual or average marketing time on your home: 1. Price, 2. Terms, 3. Condition and 4. Marketing.
Price is obviously the first item to consider. It does not take a rocket scientist to under price a home and walk away from thousands of dollars in equity. On the other hand it does take substantial knowledge of the market to price a home that reflects a favorable image in comparison to other homes that are for sale and have sold within the past few months. The following items will also have a substantial bearing on the price that is ultimately decide upon.
Terms are a large factor which may be adjusted or offered to create value and attract buyers faster. If your home is priced correctly at "market value", you could consider offering seller financing at a lower than market interest rate or a seller carry back on a portion of the sale price. Flexible terms may attract an entirely new group of buyers that would not be available through normal financial channels. Terms can also include items like: seller help with closing cost, extended escrow periods, early move in for the buyer (not highly recommended), and buy down of the buyer's interest rates.
If your homes condition is substantially better than others for sale in your area and you are offering terms that are similar, your price might be adjusted to reflect greater value to prospective buyers. Because comparison shopping is normal among buyers they should perceive greater value in your property at less money. This approach, by itself, can cause a substantial improvement in your DOM. Condition is a major factor in the buyer’s decision making process. A home with considerable upgrades and pride of ownership can often be sold at market or above in a shorter amount of time. Homes that have deferred maintenance or do not show well will quite often take a substantial reduction to facilitate a sale and sometimes well beyond the average DOM.
The obvious secret to creating a shorter selling time is to be creative, work with your Realtor, to establish unique benefits that fit your home and make you stand out from your competitors.
Property improvements
If you're thinking about selling in the long term, it is worth considering improvements that could help the prospects of making a quick sale. Updating your kitchen or bathroom can be a good move that can help sell and add value to your home. So is adding central heating and loft insulation.
But costly additions like swimming pools may actually hinder the sale - they're a lot of hassle and can put off families with children.
Neat and tidy
In the short term, there are a number of things that can improve your chance of a sale. A tidy front garden and new outside paintwork is small but valuable improvements, remember first impressions really do count.
Light and neutral colors inside are good - bear in mind that whereas you might like vibrant colors, they are not to everyone's taste.
Give your home a proper spring clean. Remember - if you do any painting inside your home to wait a few days for the smell to disappear before you put it on the market. Buyers may assume you are trying to hide something under a fresh coat of paint.
Clear out clutter - it may make you feel at home but can put off purchasers. Remember that a light uncluttered room will look larger.
Clear up the garden and get rid of any rubbish. Cutting the grass and trimming hedges and unruly bushes is also recommended.
Obtain a valuation on your property and set your asking price. Before you put up your property for sale and start showing people around, be clear on exactly what is included in the sale price (for instance carpets, white goods etc.). Be prepared to negotiate regarding price, but have a clear "minimum offer" figure in mind.
Alert the public
One of the most common ways of putting your property on the market is to use an estate agent. Most estate agents operate on a commission basis, charging a percentage of the sale price therefore earning nothing if they fail to sell the property. But if successful, they make quite a lot on each sale since they charge anything between one and three per cent of the price for their efforts.
A few agents charge a flat fee of a few hundred pounds whether they sell the property or not. If they're successful, that's good news for the seller, but if there's no sale it could be a waste of money. The agents, however, can't lose.
Most reputable agents are members of the National Association of Estate Agents (NAEA), and all reputable agents have signed up to the voluntary Estate Agents Ombudsman scheme, which regulates members and levies fines or orders compensation to aggrieved consumers.
There are various options when dealing with an estate agent:
Sole Agency agreement giving one agent the exclusive right to sell your property for an agreed period. Although this is the cheapest option, one drawback is that, if in the end, you sell your property through a private sale; you still have to pay the agent's commission.
Joint Sole Agency agreement where two agents have sole selling rights but split the commission whichever sells the property. This is more expensive than a sole agency agreement.
Multiple Agency Agreement where several agents have your details. Whichever agent sells your property gets the commission on the sale. The most expensive option.
Going going gone
One other way of selling your property is to put it up at auction. Before the auction takes place, you will have to set a guide price with the auctioneer setting out the minimum price you will accept before the day of the auction. Around one week before the auction, you must set the reserve price - the minimum that you are prepared to accept at auction. This is kept confidential between you and the auctioneer. If the sale is successful, you pay commission to the auctioneer - usually about 2.5 per cent of the sale price.
There are several things to bear in mind when considering selling your property at auction. One is that if the property fails to reach its reserve price, you will have wasted time and have to go through the whole process again. Also both you and the buyer are committed to the sale - and a completion date - once the gavel has fallen.
Accepting an offer for your property
Once you have received and accepted a suitable offer, the process is similar but reversed to when you buy a property. You will need to employ a solicitor or licensed conveyancer to ensure the legal transfer of ownership is completed as quickly and efficiently as possible. The contract is prepared and details of all matters affecting the property in the deeds or on the Land Register are given to the buyer's solicitors. If the buyer is satisfied on all the relevant matters, contracts are exchanged, the transfer deed approved and the sale is completed.
Once you have exchanged contracts you and the buyer are committed to the sale. A completion date will be set and you could end up paying damages if you fail to move out by the agreed date.
More Tips on Selling a home
The easiest and most reliable way to improve the appeal of your home is to enlist a quality home service professional. The right professional can help you get everything in order - from repainting the kitchen to providing a thorough cleaning - so you can stay focused on more important things.
Make the Most of that First Impression
A well-manicured lawn, neatly trimmed shrubs and a clutter-free porch welcome prospects. So does a freshly painted - or at least freshly scrubbed - front door. If it's autumn, rake the leaves. If it's winter, shovel the walkways. The fewer obstacles between prospects and the true appeal of your home, the better.
Invest a Few Hours for Future Dividends
Here's your chance to clean up in real estate. Clean up in the living room, the bathroom, the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor redecoration. Fresh wallpaper adds charm and value to your property. Prospects would rather see how great your home really looks than hear how great it could look, "with a little work."
Check Faucets and Bulbs
Dripping water rattles the nerves, discolors sinks and suggests faulty or worn-out plumbing. Burned out bulbs leave prospects in the dark. Don't let little problems detract from what's right with your home.
Don't Shut Out a Sale
If cabinets or closet doors stick in your home, you can be sure they will also stick in a prospect's mind. Don't try to explain away sticky situations when you can easily plane them away. A little effort on your part can smooth the way toward a closing.
Think Safety
Homeowners learn to live with all kinds of self-set booby traps: roller skates on the stairs, festooned extension cords, slippery throw rugs and low hanging overhead lights. Make your residence as non-perilous as possible for uninitiated visitors.
Make Room for Space
Remember, potential buyers are looking for more than just comfortable living space. They're looking for storage space, too. Make sure your attic and basement are clean and free of unnecessary items.
Consider Your Closets
The better organized a closet, the larger it appears. Now's the time to box up those unwanted clothes and donate them to charity.
Make Your Bathrooms Sparkle
Bathrooms sell homes, so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added allure, display your best towels, mats and shower curtains.
Create Dream Bedrooms
Wake up prospects to the cozy comforts of your bedrooms. For a spacious look, get rid of excess furniture. Colorful bedspreads and fresh curtains are a must.
Open up in the Daytime
Let the sun shine in! Pull back your curtains and drapes so prospects can see how bright and cheery your home is.
Lighten up at Night
Turn on the excitement by turning on all your lights - both inside and outside - when showing your home in the evening. Lights add color and warmth, and make prospects feel welcome.
Avoid Crowd Scenes
Potential buyers often feel like intruders when they enter a home filled with people. Rather than giving your house the attention it deserves, they're likely to hurry through. Keep the company present to a minimum.
Watch Your Pets
Dogs and cats are great companions, but not when you're showing your home. Pets have a talent for getting underfoot. So do everybody a favor: Keep Kitty and Spot outside, or at least out of the way.
Think Volume
Rock-and-roll will never die. But it might kill a real estate transaction. When it's time to show your home, it's time to turn down the stereo or TV.
Relax
Be friendly, but don't try to force conversation. Prospects want to view your home with a minimum of distraction.
Don't Apologize
No matter how humble your abode, never apologize for its shortcomings. If a prospect volunteers a derogatory comment about your home's appearance, let your experienced Preferential Properties Associate handle the situation.
Keep a Low Profile
Nobody knows your home as well as you do. But Preferential Properties Sales Associates know buyers - what they need and what they want. Your Preferential Properties Associate will have an easier time articulating the virtues of your home if you stay in the background.
Don't Turn Your Home into a Second-Hand Store
When prospects come to view your home, don't distract them with offers to sell those furnishings you no longer need. You may lose the biggest sale of all.
Defer to Experience
When prospects want to talk price, terms, or other real estate matters, let them speak to an expert - your Preferential Properties Sales Associate.
Help Your Agent
Your Preferential Properties Associate will have an easier time selling your home if showings are scheduled through his or her office. You'll appreciate the results!
