The sun will always rise in the east and set in the west. All people will someday die and, as long as you make a certain amount of money, you’ll always pay taxes. There are some things in life we cannot change, no matter how much we wish otherwise.
Real estate, too, has its immutable laws and there are three very important ones you should pay attention to as you get ready to put your Baltimore/Washington Area home on the market to sell your home for the most amount of money in the least amount of time.
1. No, Your Home In Need Of Repair Won’t Be Popular, Unless You Price It At Rock Bottom
Unless you absolutely cannot afford to fix what’s broken in your home, making repairs is a must. At least if you want to make the most money possible.
Don’t make repairs and your home is like chum in shark-infested waters. The Buyers most attracted will be Investors who won’t pay you anywhere near what you hope to make.
And, if the necessary repairs are major, few Lenders will loan a Buyer the money to purchase the home unless and until the repairs are made. These are known as Lender Required Repairs and they surface during the appraisal process.
Even a home in need of minor repairs – dripping faucets, ratty carpet, walls in need of patching – loses perceived value. Right now, the majority of Homebuyers are millennials and a recent National Association of Realtors study finds that these Buyers neither have the money nor the desire to make repairs after they purchase a home.
In Niecie Speak, the Buyers can’t see past the repairs!
“They want to cook in that kitchen from day one and entertain in the backyard that very weekend,” according to Consumer Report’s Dan DiClerico.
Want to make a profit when you sell your home? Fix anything and everything that needs to be fixed!
2.Overprice Your Home And It Will Stay On The Market Longer … And, Trust Me, You Won’t Like The Offers That You Get!
It’s truly a wakeup-call for many Homeowners when they learn that, no, they don’t determine what their homes are worth. Homebuyers do and, ultimately, the lender’s appraiser will!
So in Niecie Speak, the market determines the value of your house … not how much you want to make!
Homebuyers today are savvy enough to have either researched market values in your neighborhood or had their Real Estate Agent do it for them. A higher-than-market-value price then, isn’t fooling anyone.
Often, a Homeowner’s rationale for overpricing is to leave “wiggle room” for negotiations. The problem with this tactic is that Buyers who can afford what your home is actually worth won’t even see your listing. Your listing will appear in the MLS adjacent to homes that are larger, newer or better-maintained.
Thus, you’ll have few potential buyers to negotiate with.
Now, suppose someone does offer what you’re asking price. What are the chances that the appraiser will come up with an inflated value for your home? Slim to none, actually. So, to keep the Buyer, or attract another, you’ll need to lower the price to where it should have been in the beginning.
3. Signs Don’t Sell Homes, Marketing Does
Yes, that’s a nifty for-sale sign in your front yard and, yes, those full-color fliers are attractive. But it takes a lot more to sell a home than an MLS listing, a sign and a lockbox. Sure, it’s easier now, when we’re in a hot sellers’ market, but it won’t always be this easy.
And, even though right now Buyers are lining up for certain types of homes, homes in good condition in decent areas, you won’t get top dollar for yours if it isn’t marketed properly.
The internet has changed just about everything when it comes to home sales. The biggest change, however, is that potential Buyers can and do begin their home search from the comfort of their homes or offices.
They’ll surf the internet, both real estate brokerage sites (like this one!) and the big real estate aggregators, poring over listings of homes in the areas in which they want to live.
And, while it is your Real Estate Agent’s responsibility to market your home, it’s you who bears the responsibility of giving that Real Estate Agent something to work with.
Ensure that both the exterior and the interior are captivating enough that when potential buyers view photos of the home online, they’re compelled to want to come and see it.
In eye-tracking studies, “We find that the photo is overwhelmingly viewed first,” according to Michael Seiler, founder of the Institute for Behavioral and Experimental Real Estate at Old Dominion University in Virginia.
In the age of technology, the basics of readying a home for the market – decluttering, deep cleaning and increasing its curb appeal – are no longer choices, they are necessities. At least if you hope to get the most money possible when the home sells.
Making needed repairs and properly readying your home for the market will increase its perceived value. Pricing it competitively will help it sell quickly. It’s like hitting the trifecta!
Remember the goal: To sell your home for the most amount of money in the least amount of time … unless it’s not your goal! … sometimes you gotta do what you gotta do. Just understand that you won’t get top dollar for your home and nor will it sell quickly! … and you may experience the frustration of a few investor low ball offers. Just saying …
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