Tips for Selling your Home – Part I

Tuesday, December 29th, 2009

Do your Research

Have a look on realestate.com.au at all the properties in your area that are currently on the market. You can access a report from them obtained through RPdata to give you recent sales in your area. If you don’t want to pay for such a service, though the fee is usually quite minor, you can contact us at Happening Real Estate on 1300 725 853. We will be happy to provide you with such a report at no charge. You need to know what else is on the market that is similar to your own property. At the same time, you need to be aware of any special factors in regards to location that could be influencing the prices asked.

While location is the predominant argument in real estate, this rule may not always apply. Perhaps location is the least of your potential buyer’s worries. Don’t overlook the fact that buyers have typical and unusual reasons for buying a house. Many have jumped into the arena of investment property.

While most people buy houses so they can live in it, there are those who like to play the market and want to make a killing. Sell your house with an open mind. Don’t let the factor of location discourage you, or encourage you too much.

Basic rule: don’t get locked out of the market because you’ve overpriced your house!

Continue building up on that knowledge base: make it a daily habit of reading real estate ads everyday. Get the average selling price of a house identical to yours.

If you have the luxury of time, you may even want to drive around these houses for sale and judge for yourself whether or not the price they’re asking is justified.

Some homeowners have illusions as to what their houses cost. Is the price they ask reasonable, or way out of proportion to the looks and location of the property?

Tip 4: What are the ads saying?

Get a feel of how real estate ads are worded.
What are the key words and phrases?
What ads caught your attention?
Why?
Does the ad sound credible?
Does the ad provide adequate information to provoke interest, or does it leave the reader indifferent?
Use these ads as a model for your own.

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Tips for Selling your Home – Part 2

Tuesday, December 29th, 2009

Play detective

Do a bit of detective work: try to keep track of real estate ads that appear only a couple of days (house could have been sold in just a matter of days) and ads that seem to be in the paper forever (why can’t the advertiser sell? What’s preventing him from selling?) This is where wording might clue you into the reasons.

Realistically speaking, my house is really worth…

Set realistic goals: if houses like yours in your area are asking for $250,000.00, don’t think you could make a lot more just because you have a rose garden and your neighbor doesn’t.

Deviating too much from the mainstream can work against you. Don’t stop buyers from calling you because your price is way too much the average prices for your area.

Play the real estate game seriously.

Bear in mind that the “no risk, no gain” philosophy may not always work in real estate. Real estate is a smart, serious business. It’s better to have brains than guts! Feed your brain with information you will need when you finally do sell your house. Real estate information is not a scarcity. There are thousands of web sites dedicated to real estate. And the library holds a wealth of information on the subject.

Get only enough to get you started

Too much analysis leads to paralysis. Arm yourself with adequate knowledge and then get moving! Don’t let fear or over-confidence immobilize you. If you want to sell your house successfully, fear has no place in the grand scheme of things, nor does arrogance.

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Tips for Selling your Home – Part 3

Tuesday, December 29th, 2009

It’s the fitness thing, you know.

Do an inventory of your community’s attractions. How many parks, tennis courts are there? Is there a YMCA? All these facilities play a major role in the decision to buy, especially if the husband or wife is a fitness freak.
And what about concerts and that kind of thing?

Don’t overlook the entertainment factor: how many restaurants and movie theaters does your area have? What about concert halls and other cultural activities? Young couples, especially those with no children, like to eat out often.

They also want the assurance that if they don’t feel like entertaining friends for dinner at home, they can go for a concert or a show to spend a relaxing weekend. A very cultural community filled with activities is a huge factor, not only for them, but also for their children.
Will I fit in the area?

The ethnic factor: if your area has a strong multi-cultural presence, this might be an attraction for newly arrived immigrants in search of a house. The feeling of wanting to feel “at home” is a strong motivator. You may think it a trivial matter, but buyers do ask if there’s a sushi restaurant in the area, or if there are any Jewish Synagogues nearby.

Are there meeting places where members of ethnic communities can mingle and share views, cuisine and stores about “back home”?
Is there a doctor in the house?

Does your area have a good hospital? What makes that hospital a plus factor? Families that have aging in-laws in tow would like to know if they can get medical help immediately in case of an emergency.

Also, if your local area hospital is known for a particular specialization make sure you let your buyers know.

How is the transportation system?

How far are the major highways from your house? Where is the next largest city? How developed is your area’s public transportation system? Proximity to a subway station is typically seen by many as a benefit because downtown parking is expensive. This constitutes a great advantage also for teenaged children who attend university downtown.
No gossiping allowed!

Are you in friendly terms with your neighbors? If you’re selling a condo or a duplex, the next owners are usually curious about what kind of neighbors live in the same enclave.

Show your neighborliness, but don’t gossip about the neighbor on your right. Chances are prospective buyers are only interested if the neighbors are quiet or rowdy. They’re not interested in your neighbor’s alcohol problem.

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Tips for Selling your Home – Part 4

Tuesday, December 29th, 2009

Getting to know your house…for the last time

Okay, you have a good understanding of real estate, you know your community, and now it’s time to know your house like the back of your hand.

Every house has a hidden defect or a very visible fault. Take pencil and paper and do a tour, taking down all the weaknesses that can potentially be spotted by buyers when they visit. Go around your house several times to make sure you’ve covered everything.

You want to discover the defect before the buyer does. Spare yourself some embarrassment. Don’t underestimate the buyer’s ability to see through walls!
Did you say an in-ground pool?

If your house comes with a swimming pool, mention it! An in-ground swimming pool adds a lot of value to a house.

Make sure the pool is clean and there are no floating algae or fungi when the buyers come knocking at your door.

If there’s anything that can be quite disconcerting it’s a pool with no water, dead leaves and little creatures floating about, or large cracks in the pool. A pool isn’t fun without a heater. Let your buyer know that the pool’s heater is working.
I never promised you a rose garden.

Check your front and back yards. Are they well-kept or do they look like they’ve been neglected for the last six months? Is your grass healthy and green and well-manicured?
When buyers look for a house, they customarily concentrate on making adjustments inside the house; they understand that part of the house buying process is renovation.

At least they’re prepared for this event, but when they see that the outside of the house also needs major attention, they could get discouraged – and dismayed no doubt – to see such an unkempt front yard and backyard.

Wow, a home spa!

Pay attention to the bathrooms. Make sure they have good lighting, squeaky clean faucets and a shiny, sparkling bathtub. A stained bath tub is unsightly.

Hang some of your best linens for the visit. A bathroom that smells and looks clean can be a persuasion point. Count yourself lucky if you have a whirlpool or a large Roman bath.

For couples just recently married, the whirlpool or spa might just bring you closer to finalizing that deal. One thing with house hunters: they start with a budget in mind, but watch how they’re easily swayed to stretch that budget a little more when they see amenities that they otherwise would not have thought about previously.

A house that’s safe and sound.

Buyers are likely to ask you about insulation and energy efficiency systems in your house. If you don’t know or can’t remember, be honest and say so.
Why am I selling?

You made the decision of selling the house. You went through the motions of going over your house and looking for things to repair.

Before you get to the next step – advertising your house in the paper and by word of mouth – spend some quiet time to yourself so you can gauge your true feelings about why you want to sell your house.

If you have compelling reasons or circumstances that force you to sell, this may affect your position as a seller. As the property owner, you should always be on the driver’s seat.

Only you can dictate the terms of sale. If you’re emotionally or financially disadvantaged, you may want to put off selling your house until you’re 100% convinced that you’re ready – emotionally and financially.

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Tips for Selling your Home – Part 5

Tuesday, December 29th, 2009

Not the time to be fickle…

If your house holds much sentimental value and you feel that parting with it will affect you psychologically, assess how strong your emotional attachment to your house is.

Once the house is sold, there is no turning back. Sale contracts are legally binding. You can’t appear at the doorway of the new owners and say, “Sorry, I’ve changed my mind. I acted irrationally by selling. I want my house back!”

Nostalgia is a strong feeling

You want to sell because you’re getting divorced from your husband of 25 years? If you no longer love your husband, but still love your house, think twice about selling.

If the house means that much to you, then perhaps you may want to re-consider. A house is not only a physical structure. It is a refuge, a reservoir of memories of a family that built a future together.

I’m in a bind…

Financially strapped? Many people think of selling their house to acquire much-needed cash. Your house is your only asset and perhaps the only asset that banks will look at if you apply for a loan.

Instead of selling, you may consider the option of using the equity you’ve built up in your home to apply for a loan. But don’t sell just because you need cash. Banks are often willing to give you room to maneuver on your house equity.

My home isn’t a hotel!

If you hesitate about selling your house because you want your children to have a place to stay when they visit, remember that you raised them to be responsible, self-sufficient adults.

If you really want to sell your house, this should be the least of your worries. Your grown children can perfectly manage on their own. Your house isn’t the Four Seasons!

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Tips for Selling your Home – Part 6

Tuesday, December 29th, 2009

Listen up, but stay with your convictions!

Remind yourself that it’s your house, so buyers should play by your rules. Don’t let some smooth talking buyer convince you that your house isn’t worth that much.

You did your homework, so you’re the only one who knows what you should be getting for your house. Remember it’s the buyer who needs a house, not you. If one buyer is starting to get on your nerves, there are other buyers.
I’m selling, no matter what.

Banish your fears and emotional ups and downs because they only lead to inaction.

Bolster your self-confidence by constantly saying to yourself, “I want to sell my house, I will sell my house, and I will make money from selling my house”. This mantra will guide you and make you stronger as you go through the motions of the eventual sale.

Even well-meaning friends can derail you!

Stay focused. Don’t surround yourself with friends who like to foretell gloom and doom. “You might regret it,” or “There’s just too much stress handling the sale yourself, let the experts do what they’re best at”.

These pieces of advice, no matter how well-intentioned, have no place in your goals. Don’t be easily swayed by what your friends or colleagues tell you. Refuse to listen to horror stories about meeting the strangest of strangers.

Time to go “pro”

Earlier we provided tips on getting to know your house and going around inside and outside to see what needs to be improved.

Now it’s time to closely inspect your home for hidden defects. It’s time for a professional inspector. Get him to examine those details that can make or break a deal.

One is the electrical wiring. A fire caused by faulty wiring is serious business. Instead of enjoying the cash from the sale of your house, your hard-earned equity is going towards paying damages and lawyers’ fees.

This isn’t a multiple choice test.

See to it that the professional inspector or home inspection company you hired provides you with a well written report.

The fill-in-the-blank forms and check boxes type of report may be accurate, but a written, detailed analysis looks better to buyers. It demonstrates to them that you’ve done your sacred duty as seller.

What’s that smell?

If you have a septic system, have a percolation test performed. If repairs are necessary, you either repair them before you sell, or disclose them to the buyers. Don’t kill your chances of selling your house because of this detail.

Actually, now that you ask…

Show all repairs in a written report to all prospective buyers. This will eliminate unpleasant surprises later that might delay the sale. Disclosing all house defects and problems will help reduce the time or process leading to the final sale.

Non-disclosure can even cause a re-negotiation of the sale price if the buyers discover the defects themselves. If there is anything you don’t want, it’s being forced to re-negotiate the price down because of non-disclosure of a fact that you were legally required to disclose.

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Tips for Selling your Home – Part 7

Tuesday, December 29th, 2009

If I were buying this house…

After you’re satisfied that the professional inspectors did their job correctly, act like one. Take one, long last look.

Put on your eagle eyes, and ask yourself: if I were buying this house, what would I want done or repaired?

It’s the law, sir.

Fix any house problems that the law requires you to. Get a Sustainability Report done on your property – in Queensland it is now mandatory to disclose certain efficiency related features of your house and the requirements for reporting are only going to get tougher over time. Agents AND sellers can be fined if these mandatory disclousres are not provided. See http://www.dip.qld.gov.au/sustainable-housing/sustainability-declaration.html for more details.

You and I are different.

Little things that make a difference are those tasks or jobs that you’ve somehow delayed or never got around to doing.

Remember that what may be petty to you may not be petty at all to your prospective buyer. No two people think the same way. Selling and buying a house are two different perspectives, two different people, and two different mindsets.

Did you inherit these doorknobs from your grandmother?

Try not to overlook old doorknobs and plates on light switches. If they look lifeless and worn, replace them to liven up the living areas. Try to go for neutral designs.

If your buyers are young, upward mobile professionals, you could go for bolder designs. Make sure that whatever you put on, the buyers can take them off easily should they decide to do so.

Is this door going to fall on me?

Does your house have doors that sag, don’t close properly, squeak or have a knob missing?

There are beautiful ready-made and custom-made doors in your local home centre, so why don’t you pay them a visit; get an idea of what kind of doors would breathe life into your house?

More tips soon!

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Tips for Selling your Home – Part 8

Tuesday, December 29th, 2009

How many insects do you have here?

What about broken screens that have ugly-looking holes gaping at you and your visitors? A simple thing such as broken screens can be a huge turn off so show consideration for your buyers by taking care of these minor fix-its.
For you or the buyer?

Some experts say that little repairs that can potentially annoy you or your buyers must get fixed.

Getting small, minor jobs done will help increase your chances of selling your house.

But getting big things fixed, they say, will only mean profits for the contractor and buyer, not you. This is a matter of personal opinion.

Is this a good time to sell?

Market. Market conditions are influenced by key factors such as interest rates, supply and demand of houses in your area, competition and the general state of the economy.

Real estate is a cyclical phenomenon. The beginning of 2000 witnessed a surge in home building. All of a sudden homes were being sold faster than contractors could build them. When there’s a real estate boom, this is an excellent opportunity to make a killing!

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Know The True Value Of Your Home

Monday, December 21st, 2009

Even though many real estate agents strive to do their best for their clients, there are always those who are prepared to deceive homeowners, especially about the true value of their property.

The risk of an estate agent deceiving a vendor arose when a homeowner decided to sell and asked an agent for a quote on the value of their property. The danger was that an agent would over value the home to win the listing.
Almost everything in real estate is focused on finding sellers. Agents need homes to sell – no listings means no sales. Homeowners who were thinking of selling often sought the opinions of several real estate agents, and probably the most dangerous question you could ask an agent is “What is my home worth?” Some agents know that vendors would be asking other agents the same question and feared if they told the truth they would not win the sale.

Usually the agent who told the biggest lie about the home’s value was often the one chosen. Such lying could lead to a situation where, having listed a property at a high price, the agent then needed to condition the vendor into accepting a lower price – the true value of their home.

There are two stages to the conditioning process. The first is ‘activity’ conditioning, where the agents do, or appear to do lots of work. This stage can last for several weeks, sometimes months. It depends on your resistance or how urgently you need to sell. You may think all this activity is to sell your home, however, its sole purpose is to soften you up for the second stage of the conditioning process – the ‘crunch’ conditioning. Intense pressure is used to get you to accept a lower price. The crunch occurs when you are desperate to be rid of the pain of conditioning. If you are not ready, the agents have a number of high pressure tactics to make you see reason, or as they often call it ‘realistic’. The agent will commence a campaign – advertising lots of inspections – all aimed at getting lots of people to see your home. It is called exposure, and it seems so sensible, but it is just part of the conditioning process, designed to soften you up for the crunch.

Activity conditioning damages the value of a seller’s home and is one of the major reasons why homes sold for thousands of dollars below their best market value.

To protect themselves from this, vendor’s need to have a good knowledge of the current market – what comparable homes have recently sold for, the current strength of the market, and what is available now for sale. Vendors should price their property close to the market price when they want to get the best price the market will pay now. Overpricing NOW usually leads to a LOWER price later. Of course, if you don’t really WANT to sell your property at the best market price for TODAY, it might be best to keep it off the market until you DO want to sell it for the best market price of that time!

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