Twila E. Palmer's Blog
- You are selling your personal residence.
- You have $250,000 in profit or less if you are single and $500,000 if married.
- You have lived in your home for two of the last five years.
- The home is not an investment property.
- You need to sell your home because a change in health.
- You need to sell your home because of a long distance relocation.
- You are in the armed services and moved to fulfill your service commitments.
You have decided to sell. But before you put the sign in the yard there are some things you will want to make sure you have done. Time spent doing research and setting the right price will most likely yield you a better return in the end. A home is only worth what a buyer is willing to pay for it.
Track your neighborhood values
Find out what homes similar to yours are selling for in your neighborhood so you will have a good idea what your home is worth.
Buyer or seller market
You need to judge whether it's a sellers' market or a buyers' market in
How many homes are for sale? If you live in a desirable neighborhood and there aren't many homes for sale, you will have a clear edge here. However, if you see lots of homes on the market and they're not selling very quickly, you might have to reduce the price you had in mind.
Know the average days on the market
Review the homes in your neighborhood and their days on market sometimes referred to as DOM. Look at trends for the past year and assess whether homes were appreciating or depreciating.
Monitor the job market
Is a big company relocating workers to your area? Or are they moving out and shutting the doors? The job market has a lot to do with the real estate market.
Attend nearby open houses
Observe how other properties are showing and compare them to your home. At an open house you can often feel the "mood" of potential buyers.
Get a professional opinion
A real estate professional will be able to help you gather all of the above information and come up with a CMA or comparable market analysis to determine the best price range for you home.
Seems these days everyone is telling you what to DO, but where is the DO NOT list when selling your home? Here are three easy tips on what not to do in the sale of your home.
1. Do not get emotional
That is easier said than done -this is your home after all. The more you think of the sale as a business transaction the better and thinking with your heart is not always the best route to take when negotiating a deal.
Buyers will not place the same value on your home as you do. You will have to put your emotional attachment aside. A house is worth what a buyer is willing to pay. Much to the seller’s chagrin, this means that buyers set the market. In most cases, there is a going fee for homes. The price is typically is determined by location, house style, number of bedrooms, bathrooms, lot size, and
2. Don’t go it alone
Real estate professionals are skilled to showcase home selling qualities. They are also skilled negotiators who know how to get you the best deal. According to the 2010 National Association of REALTORS® Profile of Home Buyers and Sellers, homeowners that sold on their own property typically received $59,000 less for their home than an agent-assisted home sale.
It can be very difficult for a seller to show and close the deal on their own home. It is usually very awkward for buyers viewing a home while homeowners are still there. It may discourage them from commenting, criticizing things, or even looking as thoroughly as they normally would. A buyer is leery about trusting and working directly with the seller. Negotiations typically break down without the real estate professional’s expertise.
3. Don’t choose the agent who gives you the highest price
Many sellers get caught up in what an agent will say the house is worth. Refer back to number one on this list. The house is worth what the market will bear. Often times an agent may entice you with a higher list price to get the listing, only to drive down the ultimate selling price of your home because it has sat on the market for too many days. Choose an agent based on their reputation, marketing strategy, and one you can trust. You may want to even throw in a gut feeling on the choice. Remember you will have to work with this person so a good relationship is important.