Choose the Right Sales Associate. While 44% of home sellers (according to the National Association of Realtors) use a friend or relative’s referral when selecting a sales associate, it’s smart to interview a variety of prospective associates and invite them to show their listing presentations. Pay attention to how they plan to market the home. What will be your home’s presence on the Internet, where 74% of buyers shop. Find out how many homes they and their office listed in your local market in the past year and how many of them were sold. Also, make certain they plan to list the home on the multiple listing service, or MLS, and inquire about the breadth of the sales associate’s network of contacts. Remember, the more prospective buyers a sales associate can attract, the better the chance for a successful sale. Finally, because selling a home will require a lot of communication, you should be able to connect with the sales associate’s personality.
Do Your Homework. You should work with a real estate sales associate to develop a written comparative market analysis. This will provide a list of recent sales prices of similar homes in the area (with comparable numbers of bedrooms, baths, square footage and lot size), the asking prices of homes currently for sale in the neighborhood and other important information. Based on the CMA, a sales associate will provide his or her professional estimation of a legitimate selling price.
Take the Emotion Out of It. While you likely spent years in the home and take pride in it, the sales associate will not set the price based on your emotion. Instead, the location, condition and size of the home will significantly impact the list price. A house in a secluded, exclusive area may be appealing to some buyers, while others will want to be closer to schools, shopping and health care facilities. What is the physical condition of the home? Is it a fixer-upper? Does it make a good first impression (the ever important “curb appeal”)? Will it appeal to a growing family, or is it better suited to empty nesters? The sales associate will know the type of buyers who will be interested in the home.
Determine If It’s a Buyer’s or Seller’s Market. Home inventory, mortgage interest rates and the economy play a role in determining whether the buyer or seller has a negotiating advantage. Interest rates remain at historically low levels, allowing buyers to be in a good position to shoulder the “good” debt of homeownership. A sales associate will know the inventory levels in the community.
Do the Math. Don’t forget to figure in closing costs, legal fees and other selling expenses when determining the selling price. The sales associate should be able to provide cost estimates and negotiate with a potential buyer to ensure a good sale price.
Give It the Once Over. After working with a real estate sales associate to get a CMA and considering all the other factors, the list price will be set. But there is one more step in trying to ensure that the house sells for that price — or more. Do as much as possible to improve the home’s appearance: Touch up the paint, fix leaks, seal any cracks, clean, eliminate clutter and rid the home of any pet odors. Your house has only one chance to make a first impression.
Anne-Marie McKenzie is a Realtor with Coldwell Banker Residential Brokerage in Yarmouth. She works exclusively with buyers, sellers and investors, and teaches free buyer classes. Contact her at 847-1725 or AnneMarie.McKenzie@NewEnglandMoves.com.