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Home Selling is a Team Effort — Owner Participation is Required for Sales Success

That’s right — your participation directly impacts the sale of your home and here are important factors you can leverage to achieve sales success. Whether you decide to sell your home by-owner, or decide to consult and hire a professional, these five selling essentials are at work and understanding these critical factors provides the objectivity necessary for crucial marketing decisions.

The good news is you are in control —- you determine your home’s condition and it’s listing price, giving you an edge in controlling your home sale. Your home’s location and market conditions are influenced by external factors, and understanding the selling environment will reinforce the decisions you make about preparing your home for showing and determining a list price. Finally, your commitment to sell provides fuel for the process.

1 | The Market Sets the Stage

The real estate market is influenced by external factors over which homeowners have little control. In general, consumer confidence, employment levels, and economic conditions affect home sales. Alternative housing choices adds another dimension to your local marketplace.

The market works best when balanced between buyers and sellers. Sometimes the negotiating advantage is held by either the buyer or seller when the conditions change. A buyer’s market is made when the inventory of homes exceeds the demand —- extending the days-on-market and decreasing home prices. A buyer’s market can leave sellers searching for ways to make their home stand out in a crowd. As the days-on-market increase, sellers may consider offering attractive terms or concessions.

A seller’s market sees buyers competing for limited housing alternatives. More competition means higher prices and less negotiating. Multiple offers may be more common, and bidding wars are possible, as buyers compete for available homes. The days-on-market shorten and the terms and prices are weighted towards sellers. It can be a frustrating time for buyers.

Acknowledging the influence of external factors and housing demand will help you make focused decisions. Evaluate the competition, determine whether it’s a buyer’s or seller’s marketplace, and plan your selling decisions accordingly.

2 | Location: The Ebb and Flow of Demand

You’ve heard it before; the most important thing about real estate is location. But more importantly, what is the demand for your location in today’s market? The demand for a particular location changes over time, as consumer preferences evolve. Changes in the availability of new housing, changes in the types of housing, and the development of new business and shopping areas are responses to consumer demands. Critical to location choice are factors such as the quality of schools, the proximity to work and employment, an area’s crime rate, how the area handles traffic, and the potential for home price appreciation.

Your location within the neighborhood is important also. Maybe your home is at the end of a lovely cul-de-sac in a quiet neighborhood. Maybe you’re on a busy street or located next to the area shopping center. Competing alternative locations within your neighborhood should shape your listing price decision, and it’s important to consider the area and neighborhood factors effecting your home’s marketability.

So, whether your location is in the newest urban enclave, a rediscovered suburban subdivision, or the redeveloped historical district, you will find that the value of your home will change as consumer preferences for certain locations change, and it’s important to make your evaluation based upon today’s market.

3 | Are the Conditions Right?

Your home’s condition translates into value and effects the quality of the offers you will receive. Cleaning makes your home appealing, and handling repairs early may eliminate negotiating points when you do get an offer. And that’s not to say that you need to make a large investment to prepare your home for sale. Often, some strategic cleaning and painting, and taking care of any neglected maintenance, will be enough to make your home show-ready.

Consider the appeal of your competition and whether your home compares favorably to other neighborhood choices. Your home’s first impression is made when the buyer arrives, so having your home and yard well maintained is important. Painting the exterior, getting the landscaping in shape, cleaning the walks and drives, and cleaning the windows will get your visitors out of the car and in the front door.

Make your home inviting and pleasant by cleaning thoroughly. A fresh coat of interior paint adds appeal. Start your packing early and remove any excess personal decorations or furnishings that might make your home feel smaller than it is. Make the kitchen and baths sparkle. Eliminate any pet odors and have pet-free showings for the comfort of your buyers. Small efforts can make very large first impressions.

If your home’s a great value, it may sell while still in need of repairs and cleaning. More likely, however, buyers are looking for homes in move-in condition and are comparing homes with the least amount of wear and tear. Take care of any deferred maintenance —- inspectors examining the condition of your home will report all conditions, big and small, that require attention. Even the smallest repairs may eliminate negotiating points identified in an inspection.

4 | Pricing is Key to Your Market Strategy

Correct pricing is essential marketing —- and it’s the greatest leverage you have in controlling your home sale. Price is signal to home buyers of your commitment to selling, and it’s the first and best opportunity to attract traffic through your home. Competitive pricing creates a broad appeal to the largest number of potential buyers, because a buyer’s price range is usually the first point of elimination when evaluating housing choices. Competitive pricing creates more interest and offers sooner.

Good pricing makes for timely sales. Time is money and the sooner you find the right market price the sooner you’ll close the sale. If your timeframe for selling is limited, then you’ve got to hit the market right the first time and not whither away opportunities while you test prices.

Over priced homes languish on the market —- they become “shopworn” and are ignored by buyers. When your home is priced outside of a competitive range with other homes in the area, you’re likely eliminated from the competition, often sight unseen. Today’s buyers are armed with more detailed information than ever, and they base their decisions in terms of value. Over priced homes are passed over until they catch the eye of a buyer looking for a bargain.

An over priced home is a poor investment for an active broker, creating little incentive for agents to actively market your home. Spending time and money to advertise a house that won’t sell doesn’t make practical sense —- for the seller or the agent. That reality check can be hard to deliver to home sellers, but agents who agree to list your home at an unrealistic market price aren’t doing you any favors.

Set a pricing strategy with your agent —- pricing right requires balance. You want to avoid over pricing, but don’t give up your equity by under pricing, either. Price your home within negotiating range of the current market by analyzing list-to-sale price ratios. Evaluate recent sales and identify the trends —- anticipate price trends whether up or down. If the market doesn’t respond, reevaluate and adjust your price accordingly, making adjustments early.

5 | Your Commitment Fuels the Process

Of the five essentials, your commitment to sell is most influential, and impacts decisions you’ll make in pricing, showing, and negotiating your home’s sale. Behind many shop-worn listings are ambivalent sellers who learned a hard lesson too late.

When you are committed to sell, you energize and empower your agent to actively market your home. Likewise, buyers and their agents are evaluating your motivation, looking for an edge in their negotiating strategy. Your motivation pulls it all together and the result is timely, serious offers.

Putting the Five Selling Essentials Together

As a home seller, your goal is to sell your home to a qualified buyer, at the right price, under favorable terms, and on schedule. Evaluate the essentials and how they influence the sale of your home —- and you’ll come out ahead in the competition. Your participation is an integral part of the home sale process, and whether you go it alone, or hire a professional, you need to know the importance of your role in making the five selling essentials work to your best advantage.