Preparing your home for a sale
Whether the real estate that is for sale is a primary residence or one that has been used as an actual investment to generate positive cash flow, there are some steps that will need to be taken before the house is ready for the local real estate market. While the real estate can be prepared to whatever extent the current homeowner wishes, better prepping will often lead to faster home sales for more money.
While home improvements are an important part of any real estate sale, it is not recommended that the homeowner mortgage the house in order to fix it up and sell it. Basic improvements in the appearance of the real estate are always a good idea however. If there are any defects in the home or problems that may prevent a sale, they should also be repaired before listing the house with a realtor.
Any problems that may be considered major will often prevent the home from being sold at all. If there are leaks under the home or in buried plumbing that may not be immediately seen by a potential real estate investor, they should still be repaired. Many states have lemon laws for homes similar to those for used cars. If problems are discovered, the financial burdens will be placed on the seller, not the purchaser of the home.
The home should be aesthetically appealing to the buyer in order to better facilitate a rapid sale of the real estate in question. While it may not be necessary to hire a landscaping crew to fully manicure every inch of the lawn, care should be taken that the outer appearance of the home is pleasing to the eyes. Broken windows, missing shingles and anything else which distracts from the beauty of the property for sale will result in many less offers at much lower prices for the home.
Similar care should be taken inside the home to make it appealing to potential home buyers as well. Clean carpets, appliances and an overall appearance of neatness will give the buyer a higher level of confidence that the home has been properly maintained and cared for. This will not leave the buyer to wonder what else may be wrong with the house and dissuade them from wanting to purchase it.
The two most important factors in home preparation before selling any piece of real estate are functionality and aesthetics. The home must be safe, secure and appealing to the real estate investor if it is ever to be sold. The more appealing it is, and the more comfortable people are there, the quicker it will sell ... and for a much better price.
Preparing to Sell Your Home
1. Prepare Yourself.
Although you have many memories in your home, try to see the house as a product to be marketed. This will help to prepare yourself for the things you will need to do in order to promote the house effectively.
2. Hire a Professional.
Interview several agents and compare background, experience, personality, commission, suggested list price as well as anything else you value in a professional. Choose a real estate agent in whom you have confidence.
3. Familiarize Yourself on How to Price Your Home.
Some things to consider when determining the price of your home:
total square footage, floor plan, construction quality, condition, amenities, lot size, topography, view, landscaping, location and market conditions. Visit local open houses and compare the houses to your own as objectively as possible. Ask your agent for a Comparable Market Analysis.
4. Develop an Effective Advertising and Marketing Plan.
Work with your agent to determine the most valuable places to advertise. Ask your agent to put a for-sale sign on the property, input the property in the Multiple Listings Service, create flyers as well as advertise on their website and in local newspapers and real estate magazines.
5. Make Your House Shine.
Make certain that your house is cleaner, fresher and better maintained than other houses on the market, so that it stands out from the competition.
Creating an Effective Home Marketing Plan
While some agents may put an ad of your home in the local paper and list it in the Multiple Listing Service (MLS), there are many additional steps that should be taken to effectively market your home enabling a quick sale at the best price. A devoted REALTOR® will actively market your house using at least a few of the following methods:
1. Advertising in the MLS
Advertising your listing in the Multiple Listing Service (MLS) is imperative in any marketing plan! It is typically the first place your agent will begin marketing your house and most often directly responsible for the sale of your house. Years ago, it was used as a medium for agents to market homes to buyers agents, however, with the internet evolving it is now available for buyers to search themselves on many real estate websites.
2. For Sale Sign in Yard with Brochure Box
For sale signs with professionally designed brochures displayed in a brochure box in your front yard is also essential. This is an inexpensive way to ensure all passersby’s get a chance to notice your house.
3. Prominent Advertising on Your Agent’s Website
While the MLS is available for buyers to search it is of utmost importance your house also be prominently featured within your agent’s website. While your house is not likely the only listing your agent features you may want to kindly suggest they rotate each listing from the “featured properties” page to the homepage. The added exposure just may help you sell more quickly and your agent will likely appreciate your interest to help.
4. Advertising in Local and/or National Newspapers
Advertising in newspapers is considered traditional advertising and continues to provide REALTORS® an opportunity to market listings. The downside is the potential cost, especially on Sundays, and rarely results in a sale. It is advisable to request your agent put more effort into other marketing avenues instead.
5. Advertising in Real Estate Magazines
Many specialty real estate magazines exist for the purpose of marketing listings as well. Most often, these publications feature high end homes. However, just as with newspaper ads they rarely produce qualified leads or end in a sale. While you may like seeing your house marketed in this manner a better option would be to opt for additional website marketing.
6. Holding Open Houses
There are two types of open houses. One if for the public and generally are held on Sunday afternoons. The other is for agents.
Ordinarily, public open houses don’t result in the sale of a house either. Part of the reason public open houses have failed to lead to sales in the past is the lack of visitors. There are two things that can and should be done to promote the open house and persuade buyers to actually visit.
The first of these is website and search engine marketing. Your agent could easily display an invitation to the open house on the homepage of their website a week prior to the event. Additionally, using online ad programs such as Yahoo! Search Marketing and Google AdWords to further advertise the open house will help draw people at a fraction of the cost of most newspaper ads.
An ad by itself is not likely to draw in a large crowd but the promise of something special to eat will always win over a discerning buyer. This is the second way to increase visitors at your open house. Help your agent prepare a menu of items to attract larger crowds of people.
However, having a public open house is not as likely to bring in many serious buyers as a Broker open house. Broker open houses are held for agents instead of the general public. Since agents viewing your home during a Broker open house already have pre-qualified buyers your chances of selling are heightened.
7. Providing Buyer Feedback
While this is not technically marketing it is a valuable tool to use to help make your home more marketable. Most agents will leave their business card on a kitchen counter or table after a showing to offer buyer feedback to your agent. Your agent will then gather all cards from you at least once each week. After calling each buyers agent your REALTOR® may provide suggestions to help improve your homes appearance. Discerning buyers will likely disclose their likes and dislikes about your home. These details are infinitely important to the sale of your house.
Ensuring a Smooth Home Sale
Selling a home for the first time can be just as troubling and just as difficult as purchasing a new home. While the experienced real estate investor may or may not have a regular realtor and enough experience to make the process easier to live with, it is never actually easy. For anybody who does not buy and sell real estate on a regular basis, care should be taken not to fall into any common traps.
The first step when selling a home should be to make a complete and honest listing of everything about the home. This should not be an inventory, but a list of all of the good points and bad points about the home. If there are unsightly shingles missing on the garage roof, it should be noted. If there are countless gardens that have been meticulously manicured and cared for, they should be noted. A complete list of all of the selling points and an inclusion of anything that may in any way cause someone to object to buying the house. This home list can always be updates and should be kept handy in case any revisions are required about the real estate for sale.
The second step for anyone selling a home or real estate of any kind should be to find a licensed and qualified realtor. The real estate agent will know all of the applicable laws in regards to selling a home. Selling a piece of property or a home is not as simple as signing a piece of paper and getting a check. If the real estate investor is to be truly successful, a good real estate agent will be not only beneficial, but almost a necessity in real estate transactions.
The real estate agent will be better able to answer questions about the local real estate market. A quality realtor will know what the local housing market will bear for prices, what the neighborhood has for homeowners benefits and other factors that are not normally thought about by the average homeowner on a daily basis.
The property seller should maintain a constant stream of communications with the realtor. It is not necessary to call them on a daily basis to see if the home has been sold, they will readily inform the seller of any event of that magnitude. Communications should be kept open in order to answer any possible questions by potential real estate investors and homebuyers. A quality real estate agent will be able to maintain a position as a liaison between homeowners and sellers in order to more deftly handle all of the different and trying aspects of a real estate transaction.
