If you listed your home for sale and it didn’t sell, it’s probably super frustrating. The good thing to know is your home will sell with the proper planning, pricing, and marketing exposure. Before listing a property, it’s essential to understand how to position your home in today’s market to sell quickly and for top dollar.
We recently sold a home that was on the market for six months with a different agent. It was under contract within the first two weeks of us listing it, and it sold for higher than the last listing price.
When taking listings that don’t sell the first time around, we take a lot of time to analyze what went wrong. This is important so that when we relist the property it sells quickly and for top dollar, the next time around. Time is probably not on your side, and you definitely don’t want to make the same mistakes the second time around. Plus most of the sellers who have to relist with a new agent are often pretty jaded about the process.
So, how did we do it?
Before meeting with the seller, we dove into the details of the previous listing, the neighborhood and market conditions. Next, we met with the seller and went over the history of the listing, what happened and any feedback. From there we created a robust marketing plan to reposition the property in today’s market and give it the most exposure as soon as it hit the market.
Diving into details…
We found out about the details.
- How was the property marketed?
- How often was the property shown?
- How easy was it to show the property?
- How many showings were there?
- Were there any offers?
- What was the feedback?
Could anything from above be corrected?
If the feedback was that the home didn’t show well, what could we do to adjust this perception?
How does the home stack up against the homes that have recently SOLD?
We made sure that the home was the best of the best in its price point. We showed our seller the detailed market data so she could make the best decision about how to price in today’s market.
In making comparisons of homes you have to find the most comparable homes: same neighborhood, similar square footages, lot sizes, bathrooms, and bedrooms.
You also have to take into consideration upgrades. If everything that has sold has impact windows, new roofs and your home doesn’t, you have to adjust for not having these features.
You also have to take into consideration anything that can make the home less desirable: located on a busy street, weird lot size, too close to the neighbor’s lot line, a lot of repairs, etc.
A side note for sellers, it wasn’t for this specific property but these are common notes for sellers.
The most significant mistake we see homeowners make is in comparing the pricing of their home to homes currently “on the market.” Homes “on the market” haven’t sold yet and they typically tend to be higher priced. Yes, you can compare your property to active listings. However, it’s more important to consider homes that have recently sold over the last six months.
What’s important to know is this, today’s buyers want the upgrades that are specific to our area like impact windows/shutters, newer roof, updated electrical, plumbing, well-managed septic tank. If the property doesn’t have these items and/or they are in disrepair, you have to take that into the pricing consideration and adjust.
I can go into a ton of detail about why these items are important but just to touch briefly on the process, initially they are important for just the real estate transaction because homes that are in disrepair may create issues with the financing and if they can get insurance (which will be required to close with financing) the cost of the insurance can be super expensive for a buyer until the repairs are completed. Some buyers are just not up for this hassle, some buyers may no longer qualify for financing because the cost of the insurance is now too expensive. So you definitely cut down on your pool of buyers when everything is not up to date and so you have to adjust the price accordingly.
Okay, so from here I am sure you can get the point. Dive into the comparables and price accordingly. From there the market will respond or not, and you have to make quick adjustments.
Next, we restaged the property and repositioned the way the property was marketed.
It’s important to make sure the property looks it’s best for its current condition and pricing. It doesn’t have to be the best and most beautiful home on the market, but it should be cleaned, decluttered and staged. If you can afford to paint, paint. If you can clean out the landscaping and put in mulch and flowers, do it. The more, the better.
Unfortunately, most buyers who may be willing to be pay top dollar often cannot see through clutter or properties in need of repair.
Investors can, but they don’t pay top dollar. Staging and making repairs pays.
Hired a professional photographer.
There is no substitution for professional photography.
When buyers are looking at properties online, you don’t get a second chance to make an excellent first impression. Professional photography shows off your property in the best possible way.
Created a robust marketing plan.
Once the property was listed, we did a huge marketing push via email and social media. We also picked up the phones and called buyers and agents who had buyers that may be interested in the property.
Showed the property, in person. No lockboxes.
With the listing we recently sold, the buyer told us that she was so happy that we showed her the home and explained the history and the possibilities. A lockbox cannot do that. We don’t believe in using lockboxes. Sellers hire us to sell the property, not a lockbox.
Understood the time on the market and communicated this to the seller.
Selling a home fast is relative to how long it takes to sell a home in your neighborhood. For instance, in some neighborhoods, it can take a year to sell a home, others months. So it’s important to understand how long it takes to sell a home and from there one can determine if it was a fast sale or not. If it takes on average 6 months to sell a home in your neighborhood and you only gave it 3 months that may not be a realistic time frame. Time is a very sensitive thing. So it’s crucial to discuss timing with your agent. I can say for most of our sellers, a long time on the market is not typically a good thing. Longer times doesn’t necessarily equal a higher price.
Once an offer was presented we carefully managed it and stayed on top of the transaction process.
We presented and helped her work through all of the offers promptly, and the monitored the transaction through to the closing.
When considering all offers, it’s important to make sure you choose an offer with the most qualified buyer. All offers are not the same and it’s key to make sure a buyer is qualified before going under contract with them. If you don’t, you can easily lose 45 plus days with a buyer who may not be able to close.
Also, it’s rarely mentioned, but nowadays the transaction management process is often the most tedious part of selling a home. Navigating this process, understanding all of the vendor functions, negotiating repairs, appraisals, insurance issues and holding everyone accountable during the process can be super challenging. Experience in many cases will carry the deal through to a successful closing, or not.
In the end, the home was successfully sold.
We are so proud of this listing and so happy for our seller. Selling a home successfully takes market knowledge, skill, and experience. If you listed your home for sale and it didn’t sell, don’t worry, it is possible to sell it the second time around. The good thing to know is your home will sell with the proper planning, pricing, and marketing exposure. Before listing a property, it’s essential to understand how to position your home in today’s market to sell quickly and for top dollar.
If you would like to talk more about what your home may sell for in today’s market, give Jamey a call at 305-793-8965 or click on this link to get a free home value. http://bit.ly/whatmaymyhousesellfor
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