If the time has come, that your home is just too large, too much room, too much work, then start to prepare in case it is time to downsize. A lot of emotion can be tied up in selling a home, where you raised your children, and grandchildren, had family gatherings, and various get…Details
Without a doubt, the most important thing when it comes to selling your home, is the price. It doesn’t matter about anything else, if the price matches it, you will get an offer. This doesn’t mean things like condition of home, upgrades and updates, location, style, cleanliness don’t factor into the equation. What it means is, even the worst property in the city you live in, has a potential buyer, at the right price. You probably won’t like that price, it will sell eventually. In order to get the maximum price the real estate market will bear, you can’t just put up a for sale sign and hope for the best.
List Price: The price you start with when you activate your listing can be a tricky thing to do sometimes, and there are some different tactics when pricing. In a perfect world, you would price your home at the exact price you would like to receive, and you would immediately get an offer for that amount. Attempting to understand the local real estate market, and what comparable homes have sold for is one thing, and the normal way to price. Of course some owners are very strong minded, and have their own opinions of what their home is worth. Sometimes they are right, more often a price reduction follows suit. You can also aggressively price a home in hopes of generating multiple offers, with few conditions, and a short time on market. In the end, the final sale price is usually right at the market value, only it took a very short time to get there because of the large amount of interest generated in the property.
As an example, we just did a market evaluation on a home in North London. We found in the last year multiple comparable properties priced between $280-300,000. The ones listed in the $280’s all sold with multiple offers, and a sale price in the $290’s. All the properties priced in the $290’s took longer to sell, and sale prices were in the $280’s. They were all very similar in age, style, condition, upgrades and locations. This really is one of those times where understanding pricing, and how it can benefit your client is very important. It is also beneficial to be on the same page with our client, so they know we have their back.
Staging: A part of the process is making the home as desirable, to as many people as possible. When the idea of staging comes up, some people think it is just moving some furniture around, and decluttering. And yes, that is a part of the process. It could also be painting, changing floors, window coverings, light fixtures, counter tops, faucets, landscaping and full on renovations. Some people will have a concern with spending the money on renovating parts of their home just to sell it. If you had the choice to sell your home for $200,000 or spend $10,000 on staging and renovating parts of the home to get $220,000, would you do it? It is a possibility and that is why it is important to know some professionals that can bring in that knowledge.
Advertising: Hugely important, because if people don’t know the house is for sale, how can you get an offer? Typical advertising that we see daily on the television, in the newspaper or hear on the radio doesn’t generally offer the best value for the dollar when it comes to selling a home. If we added up all the home sales in London Ontario that came directly from The London Free Press, The Londoner, the real estate magazines (Homes and Land Magazine, Club Real Estate, Realty Street, Real Estate Advertiser) and any other print publications, it adds up to about 1% of home sales. Print advertising typically takes up 90% of a REALTORS® advertising budget, and that isn’t a good return on the money. Some of the real estate publications also advertise the listings in them on the internet as well as social media, which does help them better help the agents paying to publish their listings.
The biggest return for advertising dollar spent is on the internet. With Facebook, you can target market to potential home buyers by location, age, gender, interests, etc. That means if a savvy agent knows that a home for sale on River Run Terrace in London is ideal for first time home buyers, they can create an advertisement set for 20-35 year old people, in areas of rental buildings (Springbank and Wonderland, Oxford and Wonderland). You can create that ad, and run it for a week, get up to 10,000 impressions in peoples timelines and interest someone that may not have seen that property otherwise. Also create a blog post about a specific property using proper key words that could be typed into a search engine ie. “Ranch home for sale with garage in Oakridge.” Creating and sharing a video on Youtube of the property, using twitter and using proper hashtags to draw extra attention. With the internet the varieties of ways to bring attention to the property to people looking to purchase a property are almost endless, and yet you shouldn’t rely solely on it.
The typical time on market in London Ontario, is 45-60 days. Once you get beyond the 2 week period, if you are getting plenty of showings, and no offers, you are roughly 5% high in your list price. If you are getting no showings, you are closer to 10% high. You want to make sure you don’t wait too long to do the price reduction, or you will end up chasing the market. You’ll end up being the high priced one, that ends up selling all your neighbours homes.
These are just some of the basics on pricing your home to sell. Of course more can come into play, and if you would like some professional advice, contact The Price Real Estate Team at 519.663.9411 or email@example.com.