My Formula – The 3 P’s: Price, People and Product
I truly believe no matter what is being sold the importance of pricing, the affect of having the right people and offering the ideal Product is key. Food for thought, use this formula when you have decided to sell.
When there is equillibrium the results will be rewarding, otherwise somethings got to give.
The certain factors that are withing our control and some factors beyond our control when it comes to setting the price. Those factors within out control are: the appearance of the property, how aggressively we market the property and the price. Factors outside our control are: location of property, size and local amenities. Its important to accept these factors that are beyond our control and focus on the pricing and preparation.
A property price at market value will attract more buyers than an over priced value, Consider that a competitively priced property will also attract a greater number of potential buyers and increase opportunity for a quicker sale.
What is Market Value?
A Realtor is there to help you correctly price your property. Deciding on a true market value is where the expertise will come into play. Prior experience and knowledge will make certain that your property is priced well. Regardless of the original price you paid for the property, or even improvements you have made over the years, market value is still based on what buyers are paying for similar properties at the time you put yours on the market.
Dont lose a potential Buyer.
A rule of thumb is that Buyers look at about twelve properties before they make an offer. This will give them a great idea of whether or not a your property is well priced. If its priced too high, you have just lost a potential Buyer. Keep in mind that when pricing your property you need to be aware of what market value is and that the Buyers and Sellers desired range must over lap in order to come to an agreement.
Effects of Over Pricing your Home
You might think that if you put a high price on your home, “just to see what happens” no harm is done. Nothing could be further from the truth. Overpricing your home may seem harmless, but in fact you could miss out on an otherwise serious buyers you’ve out-priced.
If you’ve priced your home on the higher side and later to lower the price, buyers may wonder what is wrong with your home and lose interest. Pricing your home reasonably the first time is critical to attracting the right Buyer at the right time.
What you do not want is to wind up selling your home for a lower than market value price because you have scared off Buyers with your price.
If you are able to be realistic with your selling price, everyone wins.
There are countless benefits to utilizing a professionals advice. The Sale of a real estate is a complex business with many factors to consider. A professional Realtor comes with the experience and knowledge to deal effectively with these often complex and intimidating details. An agents resources, contacts and skill are critical in guiding you smoothly through the process of selling your home.
Choosing an ideal Realtor and their Team should consist of a few considerations: confidence in the person (s), communication level, professionalism, knowledge and experience, and the over all compatibility. Do not be shy to ask him or her how they conduct there business, what are some of their beliefs and ethics. After all you want the ideal person to match how you would want them to welcome Buyers through your door.
What a Realtor can do for you.
Equipped with MLS data and prior knowledge, a Realtor is able to advise on a fair and current price for your home, maximizing the likelihood of serious offers, while minimizing the amount of time to get them.
Realtors are creative and know what will work to sell your home and able to make suggestions for marketing your home. These can include some repairs and upgrades to the interior or exterior of your home, or suggestions to ensure your home looks your best.
One of the greatest benefits is the wide open exposure to potential buyers. An open house, flyers, posters are just a start, A realtor is able to call on extensive list of contacts t get the word out about your home. An Agents knowledge of the market will dictate how much advertising is necessary and when to stop. Saturating the market with ads may only advertise desperation.
Additional, through the Multiple Listing Service MLS, a Realtor can effectively advertise your property to the thousands of Buyers who look for homes first on the Internet via www.mls.ca
Bringing Strangers into your Home.
Another excellent benefit of a Realtor is that you know someone responsible is taking care of your home. Because potential buyers will be screened through the agency, you don’t have to worry about security or discretion when using a Realtor.
Closing the Deal
Negotiating can be a very emotional undertaking and one that many people are only too happy to give away. A professional knows how to close the deal with your best interest in mind, but is able to remain emotionally detached-a situation that is often much more comfortable for the Buyer and you.
When your’re home is sold on paper there are still many details that must be dealt with. From inspection to appraisal to financing. A Realtor is equipped with the skills and experience to side-step minefields and gets you involved only when you have to be. A Realtor can even go-between for tradespeople or specialists that may be required for last minute repairs that need to be completed before closing.
Now that you have determined your price and have the ideal Realtor by your side. Its time to put on a show! Always remember regardless of what happens the Buyers will determine the value of your home through their eyes, and beauty is through the eyes of the beholder.
Show Home effect
Ever walk through a property and WOW’ed by the amazing decor, cleanliness, level of craftsmanship and the scent it gives off? I am WOW’ed every day and am guilty of purchasing a property myself because of the tasteful floor-to-ceiling presentation package that was put together.
People need to get emotional about how they feel in a home, they need to imagine and see themselves living in your home and how they can make it their own. Every nook and cranny from the inside out need to be attended to. I know that as owners we may pass by a wall or closet every day and not realizing it needs a bit of TLC. We become immune to the messiness and at times we just block it out because we dont want to deal with it.
Look at it this way...Its half way to packing!
De-clutter- lets throw out whats not being used or is an eye sore. If you haven’t touched in a year, you probably won’t touch it this year.
Sanitize- Scrub everything in sight, Buyers want to know that you cared for the home and its definitely a perceived value.
Placement of furniture- Aesthetics come before function. Each room should have the intended furniture in the correct rooms.
Walls and Flooring- Due to the mass areas these two things need to be ideally spotless and good condition. A quick coat of paint, steaming of the carpets, buffing of floors or refinishing is recommended.
Windows and Drapes/Blinds- These tend to absorb every smell. Give them a quick wipe down. Its always nice to show a home with all windows exposed for natural light.
Kitchen and Appliances- This is where the money is. Use a degreaser and wipe away cooking build up. Scrub those tiles and buff the Stainless steel. I find Pledge works well on stainless!
Bathrooms- Second on top of the list. Mirrors need to be spotless, tiles free of grime and counter tops exposed.
Exterior and curb appeal- This aspect is like the icing on the cake. Everywhere outside should be free of yard waste, landscaping needs to be well trimmed, make sure there is proper lighting , gutters should be cleaned if they have been untouched within the year, all should be neat and tidy. Top it off with a power wash.
I suggest everyone go through the above fixes. This will help with the obvious apearance but also will help you discover any flaws or repairs that should be fixed. This will prepare for the Buyers inspection to come as well.
Before deciding on a major over haul the cost of renovations would be added to the amount of cost and how much you owe on the home. If this decision shrinks your gain dramatically and will not raise the value of your home, its definitely not ideal. Vice Versa, if the investment will grow the gain then absolutely ideal. Just make sure you know what you’re going up against.
Passing on the keys
This is the day that you will see this properly last. Make sure all your personal belongings are vacated and the place is spotless. No home owner will want to step into their new home with dirt and grime. A soon as there’s one thing wrong they’ll be looking for others.