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Seller Concerns Revolve Primarily Around Time and Money - 2007-06-16 |
How quickly will you be able to sell my home and how much money am I going to get for it? These are the eternal questions of the seller in all real estate markets and today is no different. It all boils down to time and money.
While the quick and honest answer to both of the above questions is "I simply don't know," an agent would be unwise to offer that as a response. Instead, it makes more sense to explain to a seller that there are many factors which contribute to both the speed of a sale and the dollar amount of the contract.
Some of these factors are controllable by the real estate professional, working in cooperation with a motivated seller. These include:
* ASKING PRICE
More so than any other piece of the selling puzzle, the asking price will have a direct impact on how quickly a property will attract offers and eventually sell. There is no question that buyers are price-driven, and need to feel that they have gotten a "good deal," what ever that means.
The most popular theory of home sellers is the Haggle Theory, in which the price is set artificially above the seller's bottom line. This theory assumes that the buyer will come in with a lowball offer, then plan to engage in a series of back and forth offers until a satisfactory price is reached somewhere in the middle.
Instead, I suggest the Appraisal Theory, in which the agent and seller pay for a professional appraisal of the property, then use that appraisal as a marketing tool, stating that the seller has hired an expert to determine a fair market value and is using that figure as his basis for selling. My experience is that it's better to reject lowball offers than to get no offers whatsoever, which is what's likely under the Haggle theory in today's market.
* CONDITION OF THE HOUSE
You've been told all your life that first impressions count, and that is true with your home as well. If a buyer's first glimpse of your home reminds him of a rehab project on the wrong side of the tracks, he will simply run to the next home for sale on his list. And in today's market, that list is fairly lengthy.
Today's buyer is looking for a home is near-perfect condition, with top dollar reserved for homes in which all the upgrading is already done and moving in is the only item left on the to-do list. If your home needs paint or features countertops from the fifties, you can forget about a quick sale. The better it looks, the faster it will sell, and for more money.
* MARKETING PLAN
There may have been real estate markets in days gone by when a seller could simply place a "for sale" sign in the yard and wait for buyers to knock on the door with full price offers. But those days are gone. This is a buyers market and today, buyers know that.
An outstanding marketing plan uses the unique features and benefits of your particular home in an effort to gain a competitive advantage over competing homes in your area. The plan should use advertising and activity to get your home in front of serious buyers at every opportunity.
A well thought-out marketing plan might include, in addition to a sign and a lockbox, judicious use of print and internet advertising, direct mailing, open houses, printed fliers, a unique web address for the property with a virtual tour, and effective follow-up on all showings including requests for feedback on price and condition. If the agent has been successful in the past, she will be able to utilize her network of professional contacts to get more showings than an agent who just entered the business.
But in addition to the factors above, there are important factors that a
real estate agent can not control in the selling process:
* YOUR COMPETITION
Real estate sales is based primarily on the laws of supply and demand, and if there is an unusually large supply of homes on the market, it is likely that prices will be soft until that supply is lessened, either through successful sales or because of sellers taking their homes off the market and waiting for better conditions.
The principle of substitution states that a buyer will substitute a comparably equipped home for yours if the substitute property offers substantially the same benefits at a lower price. I have seen this work again and again in the Atlanta real estate market.
* INTEREST RATE ENVIRONMENT
Because the majority of buyers need to finance some or all of their purchase price, the interest rate they must pay has a direct impact on how much they are willing to spend. It is fortunate that interest rates have remained favorable as we approach the summer selling season.
A recognition that all of the above contribute to a successful sale will help you achieve the highest price in the shortest time possible.
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Upcoming Events
BUYING FORECLOSURES IN GEORGIA
NEW for 2008: Bank-Owned Home Bonanza
This seminar has been updated and revised for 2008 to reflect the dramatic changes in the Georgia foreclosure marketplace. We are literally facing a flood of foreclosure properties, and there is profit to be made in each and every one of these homes.
Whether you want to build a portfolio of homes for your retirement or you simply want to find a better home for yourself and your family, this program is for YOU.
LAST CHANCE THIS MONTH!!
• Saturday, Oct. 11th, 2:00 P.M. until 5:00 P.M. - Renaissance Waverly Hotel in the Cobb Galleria
This COMPLETELY NEW SEMINAR examines the roots of today's foreclosure meltdown and explains how you can take advantage of this opportunity in your spare time.
Advance Tickets: $69; bring a friend for an additional $30.
Couples share materials.
Detailed information available under the “Seminars” button
This course approved for 3 hours of Continuing Education credit by the Georgia Real Estate Commission.
The Real Estate Investor's Institute will be held at Emory University on
November 22, 23 & 24, 2008. Make plans to attend.
Detailed information is
available under "Seminars."
This course is approved by the Georgia Real Estate Commission for 12
hours of Continuing Education Credit. Agents must bring license number.
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