There are three major factors that affect selling a home fast. Price, condition and choosing the right professional to assist with the marketing, negotiations and navigation for a smooth process.
Price is the most important factor when selling a home. The price you place on your home determines how fast it will sell. In real estate, we often hear location, location, location! Does location really matter? Absolutely! However, there is a buyer of every home. Every home will sell at the “right price” no matter its size, condition or its location. So, you see the price is the ultimate factor.
In determining price, you’ll need to have an idea of sales history. You’ll want to know how many homes have sold in your subdivision or building in a specific period. What’s the average DOM (days on the market)? What is the current absorption rate in your area? To determine absorption rate, divide the total number of homes available on the market by the number of homes selling each month. Why is this important? Absorption rate tells you how long it would take to sell all those homes in your area if no other home were to come on the market.
It's import to select the right comps (comps are the SOLD homes that are similar in size, features, condition and location to yours.) You’ll want to compare apples to apples and oranges to oranges. In regards to comps, you’ll need to look at the price of homes that have sold, not the price of homes currently listed for sale. Very few homes are sold for the price they were listed on the market. Homes currently for sale is what will be in competition with yours. You’ll have to decide; will you price your home to help the competition sell their home or will you price your home to be the most attractive to buyers based on its condition? Your home should get the most activity in the first two weeks. The mistake some sellers often make is pricing their home too high testing the market and miss out on the crucial two weeks’ window of the most activity.
Active buyers watch for new listings; they want to be the first to see a new listing, so they don’t miss out on the perfect home. If they feel a home is overpriced, they may choose not even to look at the property, thinking the seller is not realistic. The statistic shows that if a house is on the market for ten days without showing or have had ten showings with no offer the house is priced too high.
Your pricing strategy should help you meet your goals of selling your home fast. Choosing the right price is the most significant decision you will make in the process of selling your home.
The condition of your home will affect the asking price and determines if a buyer chooses to view it or not. There are investors and buyers who may want a fixer-upper. These people will expect to buy at a price that reflects the condition of the property. Investors will expect a steep discount. The majority of buyers prefer a move in ready home. For this reason, your home will sell faster if its clean, free of repairs and somewhat updated. Does not mean you should incur a major cost to make major upgrades? No, start with the simple things first, go out to the street and look closely at your home through the eye of a buyer. Ensure it has curb appeal, remove any weed or dead plants, trim the bushes, mulch if needed.
Buyers want to be able to visualize themselves living in the home. For this reason, less is more remove or pack away as much as possible. Eliminate whatever is not needed, it is often said: “Clutter eats equity.”
Painting if needed should be done before you place your home on the market. We understand that painting the house could be relatively inexpensive and makes a huge difference. If you are not skilled at painting, hire a professional.
You may ask, can I sell my home fast “as is” without improving or upgrading? Sure, if you don’t have the time or resources to make any improvement or just don’t want to be bothered you can price your home to sell in any condition. After you determine how much your home is worth based on comps, look at what your competition is offering and adjust your price accordingly. For example, if the other properties being offered have a new kitchen with granite counters and stainless steel appliances. You’ll adjust your price down to create value in the eyes of the buyer. On the other hand, if your home is superior to the comps adjust your price upward to reflect. A skilled professional real estate agent can be useful in pricing strategy.
3. CHOOSE A PROFESSIONAL REAL ESTATE AGENT
Though you can sell your home by yourself, it's advice-able to have a professional real estate agent guide you through the selling process. Why should I hire a real estate agent or a Realtor you may ask? Selling your home is a very important decision. For most sellers, a home is their largest assets, wouldn’t you agree?
Selling your home should not be guess work or on the job training. It’s important to choose a qualified professional who is familiar with the ins and outs of a real estate transaction. You need an agent who is knowledgeable and understands the current housing market in your neighborhood. Having knowledge of the market will help you decide on the right price and approach to selling your home fast.
How do I know if an agent is right for me? Be sure to select a real estate agent whose aim and strategy is to meet your goals and objectives. Choose an agent who has experience in selling properties like yours who has sold homes in that price range. Is the real estate agent experienced? Experience, in this case, is not measured by number years as a real estate agent, it is measured by the number of successfully completed transactions. I doubt you would buy an item on Amazon without looking customer reviews. Selling a home is far more important. Look on past client’s reviews before choosing an agent.
Over ninety percent of buyers initiate their home search online. Make sure the agent you choose is highly visible online. They should have a proven track record and a written action plan of how they will sell your home. Minimize your risk, ask if they have a guarantee sold program.
Choose an agent with the right credentials. Professionals invest in their education and their craft; they have specialties. Would you choose a general doctor to perform your open-heart surgery? I would hope not.
Here are a few designations that you should look for in the agent you choose:
• CRS (Certified Residential Specialist)
CRS designation is the highest credential awarded to residential sales agents, managers, and brokers. Less than four percent of all Realtor earns this designation.
• SRS (Seller Representative Specialist)
SRS designations is a premier credential in Seller Representation. Awarded to real estate practitioners by the Council of Real Estate Brokerage Managers (CRB) who meet specific educational and practical experience criteria.
• PSA (Pricing Strategy Advisor)
PSA certification teaches agents the art of effectively pricing a property. How to choose the appropriate properties to use in a Comparative Market Analysis (CMA) and how to constructively work with appraisers.
• ABR (Accredited Buyer's Representative)
ABR designation is awarded to agents who have met specific practical experience. ABR teach the agent about agency relationship, negotiation strategies.
Price is determined to be the ultimate factor in selling a home despite its condition. The right professional agent will have an effective pricing strategy to price your home correctly. A skilled Realtor will not only price your home correctly to sell fast. Such an agent will have a proven marketing plan of how to market and sell your home quickly and guide you through the ins and outs of a transaction. If chosen correctly, your agent will possess the skills to negotiate top dollars for your home. Netting you the most amount of money, in the least amount of time, with the least amount of stress to you. That is what you want, don’t you?