5 Facts Every Seller Should Know Before They List!

The chances of a listing being SOLD are greatly enhanced if the Sellers understand the facts surrounding the current real estate market and the home-selling process. This is a list of those facts Sellers may not want, but need to know in order to make the right decisions about selling their home.

1. Competition.  They should know exactly what they are competing with in advance.  The Listing Agent should use a printout so that the Sellers can get the full impact of the market. Showing a list of homes for sale just does not do it. 

2. The Absorption Rate.   The most important two stats to know are: how many comparable properties are for sale, and the average of how many sell per month (absorption rate).  When Sellers hear a salesperson say, "There are 72 homes comparable to yours on the market for sale, and on average, four sell per month,"  it's like a bomb went off!  Regardless of IQ or experience, they quickly understand that there are more homes that don't sell than there are that do.  Then they hear the Realtor say these words:  "Any Realtor can put your home on the list of 72, but my job is to make sure it's on the list of the four that SELL."

3. Market Data.  Sellers in a buyer's market should know that there are more homes for sale than there are buyers to buy them.  When their home is put on the market there will be buyers to see it and salespeople to show it, but once the 45-day surge of activity passes, it is no longer a New Listing.  It's just one of the 72 that is on the market.

4. Area Short Sales and Foreclosures.  Sellers need to understand the impact comparable short sales and REO properties have on the prices of conventional listings.  Also, if possible, they need to see them, either as photos or driving by with the Realtor.  By doing this and having that knowledge, rational people are more likely to be reasonable about the listing price and any offers.

5. Marketing Plan.  All sellers want to know about the Selling Process, and one of the key pieces of information in that process is a written Marketing Plan.  The plan should be a maximum of 45 days; if the property is not sold in that time frame in most markets, the plan is going to need major adjustments to prevent it from dying on the vine.  The problem with most unsold/expired listings is that they were On The Market but never In The Market!

 5 Steps to change LISTING IMPOSSIBLE to LISTING SOLD!

1. Reduce the price to the next price range down or significantly improve the value.  By making a significant reduction in price, it is possible that a new buyer group is identified for the property.  Reducing the price by small increments (Nibbling) usually results in very little.  It is much more effective to have the lowest possible price on day 1 of the listing and the value at the maximum level.

2. Remove the clutter inside and out.   Clutter includes too much furniture in the house, stuff on the floor of all closets, seasonal clothes, garage clutter, appliances on the kitchen counters.  On the outside, clutter consists of too many vehicles in the driveway, scattered yard tools, unused hoses, leaves, tree limbs and dead or nearly dead trees and shrubs.  Most buyers are looking for an easy move and the very nature of clutter suggests "hard work".  Who needs more work? 

Having the property staged by a professional stager is the best, easiest and most effective way to get this done.

3. Neutralize the property.  Buyers are not interested in the current family lifestyle but are looking for a way to exhibit their lifestyle.  Yes, the Blue Marlin mounted on the dining room wall and the bear skin rug must go, along with the diplomas, go kart trophies, family photos, and collection of Jim Beam bottles.  All must go!

4. New appliances.  New appliances add tremendously to the value of the property.  Money spent on new appliances can be the deciding factor on which house to buy, and certainly adds more value than reducing the price $5,000.  Even if the property does not sell the owners enhance their lifestyle with the new equipment.

5. THE NUMBER 1 ADDED VALUE-PRE LISTING HOME INSPECTION & REPAIRS COMPLETED!.  Fears that prospective buyers have are the hidden defects and the "hidden costs" to fix them.  By inspecting in advance, the pressure on the buyer, seller, and Realtor is reduced significantly and it places the property on a much higher level than competing properties with obvious defects.  This may accelerate the sale, but  even if the house does not sell, it is a benefit to the Seller to know the problem areas. 

Top 10 Buyer Mistakes

1.  Not getting pre-approval in writing for your financing before you start to shop.  Without a written commitment, you may lose your dream home to another approved buyer.  Most agents will not show you a home until you have been pre-approved.

2.  Not working with a Realtor who represents you.  Most buyers don't understand that the agent who lists the home they are seeing is working for the seller only.

3.  Waiting too long to make an offer on a home you love.  In a hot market, they sometimes don't last one hour.

4.  Making low-ball offers.  Some sellers get so offended that they will refuse to talk to you again.  If your Realtor has conducted a market analysis and confirmed that the asking price is right, offer them a fair price.

5.  Writing too many contingencies into an offer.  Contracts should be written to protect the sale, not to give the buyer a dozen ways out of it.  If you're afraid of everything and anything that may go wrong with a home, ask your Realtor about a home warranty.

6.  Listening to too many friends and relatives. Listen to the professionals (your Realtor, loan officer, etc) and only be swayed by the facts.

7.  Not reading the contract.  Read it, then when you're thoroughly confused, ask your agent to explain items you don't understand.

8.  Not getting a home inspection.  A few hundred dollars up front could save you thousands down the road.

9.  Buying a big-ticket item before closing.  Don't change your debt situation by buying anything more expensive than a toothbrush before you close.  Afterward, live it up.

10.  Calling all the listing agents of all the homes you want to see.  That's a big time-waster and, even worse, you will be working with the sellers' agents.  Find an agent, and let her do the looking and scheduling for you. 

 Top 10 Seller Mistakes

Selling your home is a complicated process under the best of circumstances.  In today's market, you must be sure to avoid these common seller mistakes:

1.  Overpriceing.  If you're not sure what your home is worth, call a Realtor to get a free analysis.

2.  Refusing to make profitable repairs.  Updating the kitchen and the bath bring the most value, followed by flooring, interior features and landscaping.

3.  Refusing to "stage" your home.  HGTV has numbered this as the top mistake sellers make.  Staging is elimating personal items, decluttering, and accenting your home's best features.

4.  Rushing your home to market before it's in show condition.  In the long run, it pays to take your time and do the repairs and cleaning before you list your home.

5.  Failing to disclose known defects.  If you're not going to repair a significant defect in your home, you must disclose it to your agent.  Even if you manage to sneak it past the buyer, it could come up after closing and wind up in court.

6.  Not understanding your rights and obligations.  Make sure your agent explains all your obligations and your rights prior to entering into a contract.

7.  Failing to properly expose your home in the marketplace.  It may take a lot of print and Internet advertising, along with open houses, to get your home sold.  Make sure your agent not only has a personal web site for your listing, but is advertising your property on all of the major Internet sites.

8.  Not negotiating low-ball offers. These offers can be insulting, but they are rarely the bottom line.  Keep talking!e

9.  Limiting access to your home.  People need to see your home when they want to or they may buy elsewhere.  Be flexable.

10. Choosing the wrong Realtor, or not using a Realtor at all in order to avoid paying the commission.  Accept that there is no way to avoid the commission, because there is ALWAYS a commission paid to either a Realtor, the seller (as more profit), or the buyer (through a discounted price, which is usually what occurs when you avoid using a Realtor.

Making a Home Move Go Smoothly

One Month Before Move

-Arrange for moving your furniture and personal belongings either by hiring a moving company   or renting a truck.

-Accumulate moving supplies such as boxes, tape, rope, and anything else you might need.

-Plan your travel route if you are driving to our new home.

-Some moving expenses are tax deductable, so you should save all moving related expenses including meals, lodging, and gasoline.

-Develop a plan for packing such as packing last the things you use the most.

-Notify the Post Office of your move by using the Change of Address form.

-Notify friends, family, and businessess of your move.

-Notify federal and state taxing authorities or any other government agency as needed.

Two Weeks Before Move

-Notify utilities like gas, electric, water, cable TV, and phone companies.  Arrange for service at new address.

-Have your car serviced if you are driving to your new home.

-Recruit people to help you on the moving day.

-Arrange for someone to take care of pets during move.

-Confirm moving company or rental truck arrangements.

One Day Before Move

-Keep moving materials separate so they don't get packed until you are finished.

-Pick up rental truck if you are doing it yourself.

-Try to get a good night's rest.

Things to do After the Move

-Notify the sender of any mail forwarded to you of your new address. This is only necessary if there is a yellow address label on it which indicated it has been forwarded.

 -Register to vote so that when election time rolls around, you will be eligible.

-Get a change of address on your driver's license if you have moved within the state and make application for one if you have mved out of state.

-Make contact with a local insurance agent to transfer policies.  Complete a Household Inventory of your new home.

-Find out when the trash and garbage is picked up and whether there is a re-cycling program available.

-After locating a new doctor and dentist, have your medical histories transferred.

-Ask for recommendations of good contractors like plumbers, air-conditioning services and the like so that when you need them, you will know who you should call without being at the mercy of the yellow pages.

-Locate new service providers such as banks, pharmacies, cleaners, etc.

-Make a list of the emergency numbers such as fire, ambulance, polce, hospital, poison control, and the like so they will be available in an emergency.

-Recognize that moving can be very stressful on people and that you should be considerate of your family members and yourself.

Tips on Packing

-A substancial amount of money can be saved by packing your household goods. To insure safety for your belongings, care should be undertaken to pack properly.

-Use strong containers, in good condition, that can be sealed with strapping tape. These can be purchased locally from moving companies.

-Keep in mind what the box will weigh after it is loaded. 40 to 50 pounds is considered the maximum.

-Empty spaces in boxes should be filled with crumpled newspaper or bubble wrap to keep things from shifting in transit.

-Books should be stacked on end and generally in smaller boxes than other things due to their weight.

-Label each box after packing, first, so that the movers will know which room to put it in and secondly, to help you to prioritize which ones need to be opened first.

-Remove all breakables from drawers before moving furniture.

-Don't pack valuables such as jewelry, collections, checks or savings books.

-Packing takes longer than you expect so allow plenty of time.  Pack items that aren't frequently used first and unpack them last.

-Organization in packing will save you hours of time and frustration in the long run.

-Items that are no longer wanted can be donated to charity and you may be eligible for a tax deduction.

Helping Children With a Move

-Show the children the new home and their new room prior to moving.  If this is not possible, pictures or videos will help them visualize where they are going.

-Assure children that you won't forget their friends.

-Make a scrap book of the old home and neighborhood.

-Throw a good-bye party.  At the party have their friends sign a tee shirt.

-Have your children write good-bye letters and enclose their new address.  You may wish to call the other children's parents so they will encourage return letters.

-When packing, give them their own box.  They can decorate it so they know which one it is.

-If you move far away buy postcards when you stop so they can remember the trip.

-When unpacking, allow them to unpack their treasures then, have them play with the boxes while you unpack.

-Start a scrap book for their new home.  Include a diary of "Myfirst..."

-Visit their new school, park, church, etc.  Take a camera.

-Help your children invite new friends over to the home.

-Let them choose a new favorite restaurant.  This will help them feel in control of their new world.

-Encourage them to send letters about their new home to their friends.

-Involve your children in groups, sports, and activities like the ones they used to participate in.

-Remember even if you only lived in a home for a few years to a young child it is nearly their entire lifetime!

Your local real estate professional can help you find another professional in the city you are moving to.  They can provide information on homes, mortgages, employment opportunities, schools, entertainment, sports, and lots of other things.  There is no charge for this referral and it can help you to arrive educated on the area.