Seller’s Guide – Step 4

Marketing Your Home

A Successful Sale

There are many variables that can help your home sell faster. These variables range in scope, target and value- but the key point to keep in mind is to make your home stand apart from the competition.

This is the time to get creative. The more incentives you offer, and the more people you offer them to, the better odds of selling your home get. For example; if there are two comparable homes on the market directly competing with yours, you can bet that anyone who sees your home will see those homes as well.

So you need to be very familiar with what it is, exactly, you are competing with – and make your home as attractive to prospective buyers as possible. In this section you will learn ways to make buyers choose your home over the rest.

Price

If your home is priced too high; you must be willing to wait much longer for your home to sell. Either it will take that much longer to find someone to pay more than the home is worth, or the market will eventually catch up to the “asking price” of the home through inflation.

Offer incentives

A little known tactic to sell your home quicker and for a higher price is to offer a higher commission for the sale of your home.

Common Concerns About Selling

Does the amount of time I give my REALTOR to sell my home make a big difference?

Not always- but understand that many times a salesperson will do some research on your home. If an agent finds that you entered into a short term listing agreement, they may interpret that as a sign of anxiety to sell – in which case the agent would naturally recommend trying a lower than normal offer for your home.

Won’t I save money by selling myself without a REALTOR?

You may try to sell your home without a REALTOR to save a commission – but are you really saving a commission? Let’s take a look at all the key players. We have our Seller, who like anyone else wants to save some money so they decide to sell their home without the use of a REALTOR. They we have our For Sale By Owner Shopper, who decides to forgo using the services, expertise, equipment, negotiating skills, connections and knowledge of the real estate agent – in order to what? Again – save the commission. Are we talking about two separate commissions here? No – there’s only one commission. And serious For Sale By Owner Shoppers only shop For Sale By Owners to save this commission. They find a For Sale By Owner property that they can live with and knock the commission right off the top of the offer. In this situation you really didn’t save a commission – you just gave it away. Would you rather give this money away to a total stranger or enjoy the benefits of letting an agent who handles all the details and pays all the expenses associated with marketing your home?

Go it alone or use a REALTOR®? 

Can’t I list high and come down later?

Yes you can – but there are many drawbacks to doing so. Pricing your home for anything higher than market value will actually cost you money, time and headaches. One reason for this is that an overpriced listing will actually help to sell more reasonably priced properties. Buyers will shop around and if there are similarly priced properties in the same area, they will see them all. If your home is overpriced, the buyer will be disappointed in what they see, but in turn will be impressed with the apparent great value of a properly priced property compared to yours.

Another drawback to pricing your property at higher than market value is that the first few weeks that your home is on the market is the most critical time. You are the new kid on the block- and buyers that have been waiting for new listings to become available will come see your home. These are the most qualified buyers because they are just waiting to find the right property, they are already working with an agent, and more than likely are completely approved for their financing. If your home is overpriced, the buyers looking in that price range will be disappointed in your home and will buy something else. But the real loss is that the buyers in the price range that your home should really be in may not even look at your home because it’s something they don’t qualify for.  Consequently, your home languishes on the market until you bring the price down to a more realistic figure. If these buyers haven’t purchased something else yet, they will wonder why your home hasn’t sold in all this time. Your home is now what is known as shop-worn or a stigmatized property. Buyers will be asking themselves why your home hasn’t sold and what is wrong with it? So you will find yourself lowering the price again from the true market value of your home in order for the home to sell.

Won’t another agent list my property for a higher asking price?

Without a doubt. But the key point to keep in mind here is the following: Agents don’t establish price – the market does. Many agents list properties at one price and expect to sell them at a completely different price. This is what is known as buying the listing. What this does is excites the selling into signing a contract and a few months down the line the seller is shown the facts and asked to drop the price down to market value. At this point your property is shop-worn and will fetch less than it would have if priced right initially.

> Next: The Selling Process