Four Types of Home Pricing

Here are four common strategies used by sellers – and their Realtors – when selling a home.

1. Clearly Overpriced

Every seller wants to realize the most amount of money they can for their home, and real estate agents know this. If more than one agent is competing for your listing, an easy way to win the battle is to over inflate the value of your home. This is done far more often than some people realize, with many homes that are priced 10% to 20% over their true market value.

This kind of strategy is not in your best interest, because in most cases the market won’t be fooled. As a result, your home could languish on the market for months, marked as a “troubled” house buy other agents leading to a lower than fair market price when an offer is finally made. At the very least, you will be inconvenienced with having to constantly keep your home in “showing” condition for no reason.

Overpriced homes often expire off the market, forcing you to go through the listing process all over again.

2. Somewhat Overpriced

About three quarters of homes on the market are 5% – 10% overpriced. These homes will also sit on the market longer than they should. There is usually one of two factors at play here: either you believe in your heart that your home is really worth this much despite what the market has indicated, or you’ve left some room for negotiation. Either way, this strategy will cost you both in terms of time on the market and ultimate price received.

3. Priced Correctly at Market Value

Some sellers understand that real estate is part of a capitalistic system of supply and demand and will carefully and realistically price their homes based on a thorough analysis of other homes on the market. These competitively priced homes usually sell within a reasonable time frame and very close to the asking price.

4. Priced Below Market Value

Some sellers are motivated by a quick sale. These homes attract multiple offers and sell fast – usually in a few days – at or above the asking price. Be cautious that the agent suggesting this method is doing so with your best interest in mind.

Price Calgary Condos right the first time with a certified professional Calgary Condos Expert.

Preparing Your Home For Sale: A Checklist

First impressions ar lasting: we don’t get a second chance to make a good first impression. Most home buyers seek out homes that are well maintained and clean. Regardless of price, clean homes almost always sell faster and fetch a better price than ones that are not well taken care of. Below is a checklist that will help you be sure your home for sale is in tip top shape and ready for the market.

Most Important

• Kitchen: Sink, stove, fridge and table should be spotless. Dishes, pots and pans should be neatly arranged in kitchen cupboards: buyers will look inside them to get an idea of how much storage the kitchen has, and unnecessarily cluttered cupboards will make them look smaller than they are. Your kitchen floor should always be clean.
• Bathrooms: Neat and fresh. No rings around the tub or spots on the mirrors. Clean all discolourations from ceramic tiles.
• Bedrooms: Beds should always be made. Dirty clothes should be put away and all closets neatly arranged and tidy. This gives the impression of more space.
• Utility Room: Make sure that all appliances (furnace, hot water tank, humidifier, etc.) are spotlessly clean. Clean utilities give the impression of a well maintained home.

Interior

• Arrange furniture to allow for an easy traffic flow. Make rooms appear larger by removing excess furniture.
• Box up all unnecessary household items that only take up space.
• Coordinate all your colours, such as pillows and other accessories.
• Add new window treatments if necessary that won’t obstruct views. Make sure existing coverings are not torn, faded or frayed.
• Paint any part of the house that needs it. Neutral colours are always best.
• Organize closets to show off storage space.
• Carpets should be clean. Steam clean if necessary. The perceived imminent replacement or cleaning of carpets may downgrade what a purchaser may be willing to pay for your home.
• Repair squeaking floors if possible.
• Oil squeaky doors and tighten door knobs.
• Re-grout floors and countertops if necessary.
• Clean appliances – inside and out – and keep in good working order.
• Repair all leaking taps, toilets and utilities.
• Declutter every room, especially “utility rooms” like kitchen and bathrooms.
• Keep your home free of strong cooking, smoking and pet odours.

Exterior

• Paint any part of the house that needs it.
• Repair door screens, windows and fences so they show and work properly.
• Clean the garage and any storage sheds/areas.
• Cut and trim your lawn, and get your front and back yard landscaping in top condition.
• Cut back all shrubs and trees that may be covering windows and making rooms appear dark.
• Keep all pathways to the house uncluttered and well lit. Keep sidewalks and driveways shovelled in the winter.
• Clean patio furniture and make sure it is in good condition.

Learn more about selling Fort McMurray Real Estate with one of the top Fort McMurray Realtors in the city.

9 Home Pricing and Negotiating Tips

Here are some tips to help you price your home, and some guidelines to remember during the price negotiation process once a home buyer has made an offer on your home for sale.

1. Give yourself room to negotiate.

Make sure you leave yourself enough room in which to bargain. If what you ask for is unacceptable to the buyer, and their first offer is unacceptable to you, then you better make sure you have someplace to go that is acceptable to you. Start with the absolute minimum price you would accept, then pick the price you’d get if the world were perfect. This gives you your range to keep in mind when working with your Realtor to negotiate the sale. In setting your asking price, review your priorities. Do you want to maximize your profit or sell quickly? You’ll price high for the former, and closer to the market value if the latter is the case.

2. Don’t get emotional during negotiations.

The extent of most people’s experience in the art of negotiation begins and ends at their local auto dealership, and few of us have pleasant memories of haggling with car salesmen. But if you can just let go of the emotion you’ve invested in your home and approach negotiations in a detached, businesslike manner, you’ll find the process to be a lot less painful. In fact, you might even enjoy it: you’ll definitely have an advantage over prospective buyers who get caught up in the emotion of the situation.

3. Know your buyer.

During the negotiation process, your objective is to control the pace and set the duration. And the better you know your buyer, the more easily you can maintain control. As a rule, buyers want the best property they can afford for the least amount of money. But knowing specifically what motivates your buyer enables you to negotiate more effectively. Maybe your buyer needs to move quickly. Or the maximum amount they can spend is just a little below your asking price. Knowing this information puts you in a better bargaining position.

4. Find you what the buyer can pay.

As soon as possible, try to find out the mortgage amount the buyer has qualified for and the size of his down payment. If he makes a low offer, question the Realtor about his client’s ability to really pay what your home is worth.

5. Find out when the buyer would like to close.

When a buyer would “like” to close is often when they need to close. Knowing this gives you his deadline for completing negotiations – again, an advantage in the negotiations.

6. Don’t buy or move before you sell.

If circumstances conspire to force you into closing on your new home while you’re still making mortgage payments on the old one, you might end up turning yourself into a seller who is too eager – or even desperate – for the first offer that comes along. And if having two mortgages for a while isn’t a concern for you, it’s still not a good idea to move before your home is officially sold. Studies have shown that it is more difficult to sell a home that is vacant because it looks forlorn, forgotten, and just not appealing. It could even cost you thousands! If you move, you’re also telling buyers that you have a new home and are probably extra motivated to sell. Any deadline adds unnecessary pressure and puts you in a serious disadvantage during negotiations.

7. Don’t take a low offer personally.

The first offer will invariably be well below what you both know the buyer will end up paying for your property. Don’t get angry or feel insulted; evaluate the offer objectively. Make sure it spells out the offering price, adequate earnest money, amount of down payment, mortgage amount, a closing date and any special requests. Now you have a starting point for negotiations. Remember though that a really low offer may mean the buyer is not really qualified to purchase your home. If you feel an offer is inadequate, it’s a good time to make sure they buyer has been pre approved for a mortgage of a size that is appropriate for your home. Ask how the buyer arrived at their figure, then suggest their agent use comparables to establish what homes are going for in your neighbourhood.

8. Make sure the contract is complete.

The best way to avoid problems is to make sure all terms, costs and responsibilities are spelled out in the contract of sale. A contract should include the date it was made, the names of the parties involved in the transaction, the address of the property being sold, the purchase price, where deposit monies will be held, the date for loan approval, the date of closing, any contingencies that remain to be settled, and whether there’s any personal property included (or not) in the sale, among other things. And, once the contract is made, resist the temptation to diverge from the contract. For example, if the buyer request a move-in prior to closing, just say no.

If you’re selling an Edmonton Home make sure you have a qualified Edmonton Real Estate professional by your side. They are fully trained and have a lot of experience with these kinds of negotiations.

Marketing Your Home

Each year, the corporate world spends literally billions of dollars on product and packaging design. The lesson here is appearance is critical, and it would be foolish to ignore this when selling your home. You may not be able to change your home’s location or its floor plan, but you can do a lot to improve its appearance. The look and feel of your home generates a greater emotional response than any other factor. You may price your home to sell, but a prospective buyer reacts to what they see, hear, feel and smell.

By maximizing your home’s marketability, you’ll increase your chances of attracting more than one offer. Why is this better> Because several buyers compete with each other, while a single buyer ends up competing with you.

Rely on other people’s judgement as well as your own.

The key to effective marketing is knowing your product’s good and bad points. In the case of your home, accentuating the good can mean a faster sale for more money; failing to deal with the bad can mean months on the market and a lower-than-desired sales price. The biggest mistake you can make at this point is to rely solely on your own judgement. Remember, this is your home, a place of fond memories. There are bound to be emotional issues that can impair your ability to make an honest assessment of your home’s strengths and weaknesses.

In evaluating what improvements you can make, don’t be shy about asking others for their opinions. But make sure you’re getting an honest answer; some may try to spare your feelings, just what you don’t need. Fortunately, your Realtor won’t be shy in discussing what should be done to make a home more marketable.

Remove yourself and your family from your home.

When you toured other people’s homes, you may have felt some discomfort. This probably occurred because you saw, heard or otherwise sensed something that made you feel as if you were intruding into someone’s life. The last thing you want prospective home buyers to feel when they view your home is that same sense of discomfort. Avoid this by making your home as neutral as possible. Anything that interferes with a prospective buyers’ ability to see themselves living in your home must be eliminated. A few carefully chosen knickknacks and family portraits may add warmth and character to the home, too many are a distraction. Avoid unique or trendy colour schemes – paint and carpet in neutral shades of white or beige.

Little things can make a big difference

While personal items can detract, other small touches can help make your house a home to potential buyers. A well-placed vase of flowers, accent pieces of sculpture, potpourri in the bathroom – all these small touches can enhance the attractiveness of your home in a subtle, soft-spoken way. Try perusing any of the home magazines for tips.

For expert advice on how to market Fort McMurray Homes, make sure you contact a Fort McMurray Realtor with a reputation for excellence in sales.

Getting Your Home Ready To Sell

Before you open the doors of your home to prospective home buyers, there are a lot of things you should do first to get your home ready to sell. A good home showing can result in an offer, while a poor one could mean your home sits on the market for months before you get any bites. Keep these tips in mind when you’re getting ready to put your home on the market, and make sure everything is ready for a showing the day you list your home: the last thing you want is to be running around cleaning and making repairs an hour before a buyer shows up.

Clean everything.

Pick up, straighten, unclutter, scrub, scour, dust… everything! If your living room feels crowded, take out every piece of furniture you can get away with. If your home still isn’t ready to appear in House Beautiful, then clean some more. Remember, you’re not just competing with other people’s homes – you’re going up against brand-new homes as well.

Fix the small things as well as the big things.

The step that squeaks, the light switch that doesn’t work, the hairline crack in the bathroom mirror – they might be minor annoyances to you, but they can also be deal-killers. The problem is that you never know what will turn a buyer off. And even something minor that’s gone unattended can suggest that perhaps there are bigger, less visible problems present as well.

Remove yourself and your family from your home.

When you toured other people’s homes, you may have felt some discomfort. This probably occurred because you saw, heard or otherwise sensed something that made you feel as if you were intruding into someone’s life. The last thing you want prospective home buyers to feel when they view your home is that same sense of discomfort. Avoid this by making your home as neutral as possible. Anything that interferes with a prospective buyers’ ability to see themselves living in your home must be eliminated. A few carefully chosen knickknacks and family portraits may add warmth and character to the home, too many are a distraction. Avoid unique or trendy colour schemes – paint and carpet in neutral shades of white or beige.

Don’t let smell be your downfall.

Odd smells kill deals quickly. All traces of food, pet and smoking odours must be eliminated. Even when you’re sure they’re gone, don’t encourage prospective buyers to imagine things. If they know that you’re a smoker or that you have a dog, they’ll start smelling odours and seeing stains that may not even exist. Be safe: don’t leave any clues.

If you want to know more about how to get Fort McMurray Homes ready to sell in the current market, contact a Fort McMurray Real Estate professional. They can do a walk through and provide expert advice.

Find A Good Realtor

Nearly two-thirds of the people who sell their own home say they wouldn’t do it themselves again, according to research by the National Association of Realtors. Sellers surveyed point to difficulties setting a price, marketing handicaps, and liability concerns among the primary reasons they would turn to a Realtor next time. And selling a home yourself usually eats up more time and effort than you might initially expect.

Once you understand how much work it will be to sell your home yourself, talk to a Realtor you trust even if you decide to strike out on your own. Many top professionals are more than willing to help do-it-yourself sellers with the paperwork, contracts, etc. Plus, you’ll have a relationship with an agent if problems do arise that require professional help.

If you decide to work with a Realtor, contact four or five: you probably met a few that you liked during your open house tour. Explain to each that you’re thinking about putting your home on the market and you’d like to meet to talk about pricing and marketing. By having this “group evaluation” done, you should end up with a fairly tight price range to help guide your decision. Any Realtor who is substantially higher or lower than the group should be able to justify their estimate. Just as you should be concerned with too low a price, beware of a Realtor who gives you the highest price – they may be trying to buy your listing.

Hiring the right Calgary Condos expert is important if you’re planning on selling your Calgary Condo. Every Realtor will do the initial consult and walk through for free, so it’s a good idea to contact one first: even if you ultimately sell yourself, you might learn something valuable!

Do Your Homework Before Setting A Price

Settling on a offering price shouldn’t be done lightly. Once you’ve set your price, you’ve told buyers the absolute maximum they have to pay for your home. The trick for the seller is to get a selling price as close to the offering price as possible. If you start out by pricing too high, you might not be taken seriously by prospective buyers and their Realtors. A price too low can result in selling for much less than you had hoped for.

Settling your home’s sale price can be a fairly easy process. If you live in a subdivision comprised of homes with similar or identical floor plans, built in the same time period, then all your have to do is look at recent sales in the neighbourhood to give you a good ballpark figure.

But many people live in older neighbourhoods that have changed quite a bit over the years. Every home in your neighbourhood may be different in minor or substantial ways – the house next door may have added another bedroom, for example, or the one across the street might have been built recently to fill a vacant lot. As a neighbourhood evolves over the years, you may find that there aren’t any homes that are truly comparable to your own.

If you decided to sell your home on your own, the most common way to set a value is to look at homes that have sold in your neighbourhood within the past six to twelve months, as well as those now on the market. That’s certainly how prospective buyers will assess the worth of your home.

You can usually learn what homes have sold for in your neighbourhood by making a quick trip to City Hall; home sale information is in the public record in most (but not all) communities. Another great way to get to know your competition is to check out other open houses in your area. Plan on spending a few weekends touring other homes on the market to learn what other sellers are asking. Be sure to make note of the floor plan, condition, appearance, size of lot, location and other features. If you visit enough homes and pay close attention to the details (and what other home buyers are saying), you’ll develop a good understanding of how different features affect home pricing. Then, you can apply what you’ve learned to the task of setting your price.

If this sounds like a lot of work, you may decide to hire a Realtor. Your Realtor will do all the market research and provide you with comps showing where your home should be priced to best meet your goals – a fast sell, maximum profit, etc. A good Realtor is attuned to nuances in the local market that may not be apparent from comparable sales and listings.

Selling a Fort McMurray Home and need help getting started? Contact a professional Fort McMurray Real Estate team that has the know-how to sell your home properly.

Guest Post: Showing Your Home in Winter

Guest post from Fort McMurray Realtor Susan Lore and her team at The Lore Group, originally posted on The Lore Group Blog.

Selling real estate during the winter months can be trying: the weather is cold and gloomy, daylight hours are in short supply, and there are fewer buyers looking. It’s important to remember, however, that even though you may have less showings when selling your home in the winter months, house hunters who are keen enough to brave the cold tend to be serious buyers.

Curb appeal and staging your home properly for a showing is never more important than during the winter months. Getting the easily-forgotten details right can make the difference between a sale and another week of waiting in the slower winter market.

6 Tips for Showing Your Home During the Winter

Shovel the snow and scrape the ice.

Access is important, and the worst first impression is a driveway or sidewalk that’s still covered with snow: a snow-free walk and drive gives the impression lots of prospective buyers have been looking. Watch for icy spots and make sure to keep slick areas regularly salted or sanded. Ensure decks and pathways to sheds or garages are shovelled, and keep a path cleared from the street to the walk through any piles left by snowplows.

Take the Christmas decorations down early.

Don’t keep your lights and Christmas decor up for long after the holidays have passed. If you usually keep your lights up but off all year round, take them down this year. You’re selling anyway, so consider it a jump-start on packing! Keep up any winter-themed decorations you have such as welcoming winter door wreaths or table centrepieces. Think seasonal touches rather than holiday ones.

Mind the wet boots and jackets.

Remember every agent and buyer that comes into your home will have thick winter jackets and snow-covered boots. Provide a convenient place to remove wet footwear and hang coats immediately when buyers enter your home: additional thoughtful touches include slippers, a basket for scarves and gloves, and a chair or bench to sit on when taking off or putting on boots. Buyers will appreciate you protecting the floor of their prospective investment.

Keep your home warm.

Make sure your home is warm when you know your agent is scheduling showings. In particular be mindful of the temperature of your floors: cold hardwood or tiles on the feet is an immediate turn off. If you’re leaving town for the weekend while your agent is showing your home, make sure to keep the thermostat up: buyers who aren’t comfortable won’t stay long. Keeping the temperature low might mean savings on your utility bill but will affect your final selling price.

Pay attention to the light.

Encourage showings during daylight hours and keep your blinds and curtains open to showcase your home in natural light. Make sure your windows are spotlessly clean: the angles of winter sunlight highlight grim on glass. If you’re showing at night turn on every light so agents and buyers aren’t spending time looking for switches, and clean lamps and fixtures to make sure everything looks its best. Set up timers to turn outdoor and select indoor lights on when you aren’t home for prospective buyers doing drive-bys in the evening.

Think cozy
Create an inviting and cozy atmosphere and make your home a retreat from the cold weather. Turn on gas fireplaces and place warm throw-blankets on couches or chairs. Provide warm cocoa or fresh brewed coffee and tea. If you enjoy baking the aroma of cookies complete with a plate of fresh baking to snack on can endear you to potential buyers and make your home a welcome haven from the sub-zero temperatures.

This post first appeared on The Lore Group Blog. For more information about Fort McMurray Real Estate, please contact Fort McMurray Realtor Susan Lore and her Team.

Why 80% of For Sale By Owners Fail

Selling your home on your own might seem like a great idea. Put a “For Sale by Owner” sign out in the yard, get the price that you ask for, and avoid having to pay a Realtor any commission.

In theory, it seems simple and smart. Sellers who try to sell on their own often imagine that the whole process will go more smoothly with less professionals involved. In practice, however, it rarely works. An overwhelming percentage of homes that go up “for sale by owner” end up being listed with a Realtor. Why?

The failure of trying to sell your home on your own is typically do to lack of exposure and poor marketing. You may have a Facebook and a Twitter account that you can advertise your home on, but this won’t be enough. In order to market your home well, you have to be able to market to targeted potential buyers. Unless you are a Realtor, you do not have access to publishing your home in journal advertisements or real estate magazines.

You probably are not even quite sure how to write out the features of your home in a way that sells your home on paper to prospective buyers. Also, if you did feature your home in some type of ad, would you know how to photograph your home properly to attract prospective buyers? Without sufficient publicity, your home may very likely go unnoticed in the general housing market.

Also, you have no access, as a “non-Realtor,” to the Merritt Island real estate websites that market homes. While there are “for sale by owner” websites, they do not garner the website traffic that real estate websites do; this is a statistical fact. People who are in the market to purchase a home often just trust a Realtor and their websites more.

Why? Well, it seems to be a matter of trust; potential customers typically trust that Realtors know what they are talking about, know how to price a home, and know how to evaluate a home. Instead, you will only be able to rely on word of mouth, maybe placing an ad in newspapers, some social media, and hopes that people will drive by your home and notice your sign.

Hiring a Realtor is a Smart Choice

Realtors are professionals at what they do. They are knowledgeable about the housing market in your area, and they know how to market your home. Unless you are a professional Realtor, frankly, you are an amateur Realtor. Do you trust your most valuable asset (your home) with an amateur?

Now, in theory, that does not make sense, does it? You are perhaps a professional in what you do every day, and your realty skills cannot measure up to that of a trained Realtor. So, go ahead and use a Realtor’s knowledge and skills to your advantage. Yes, you will have to pay them a commission fee, but the expense will be worth it.

Realtors have connections that you have probably never even considered. They know professional home stagers, they know professional real estate photographers, and they know people who are excellent at coming into a home and making minor repairs that can all lead to a major difference in the price that you get for your home.

Also, Realtors know what your home is really worth based on the current market in your area. They will price your home accurately and give you room to negotiate, most likely. This article is not meant to be discouraging; instead, its intent is to give you the facts on why “For Sale by Owner” is not the best way to go when attempting to sell your mot valuable asset. Instead, invest in and trust a professional to help.

If you live in Edmonton, it’s best to choose a great Edmonton Real Estate Team if you’re thinking of selling your home. At the very least, you should always consult an Edmonton Realtor for more information on how to price your home properly.

Know Why You’re Selling, But Keep It To Yourself

For most people, selling their home means cashing in on their biggest asset. In other words, it must be handled with great care if you hope to protect – and capitalize on – your investment. The reason you look closely at why you want to sell your home is that your motivations play an important role in the process. They affect everything from setting a price to deciding how much time and money you’ll invest in getting your home ready to sell.

For example, what’s more important to you: the money you’ll walk away with, or the length of time your property is on the market? If your goal is a quick sale, that can dictate one kind of approach. If you want to maximize your profit, the sales process will almost certainly take longer.

Your reasons will affect how you negotiate the sale of your home, but they shouldn’t be given as ammunition to the person who wants to buy it. For example, a prospective buyer who knows you must move quickly has you at their mercy in the negotiation process. When asked, simply say that your housing needs have changed. Your reasons are nobody’s business but your own.