One of the first questions I hear when I am approached by people wanting to sell their home is, “How much do you think my home is worth,” shortly followed by, “and how quickly do you think I can sell it”. After a few minutes of conversation, many say something to the effect of, “You sure know your stuff! We will get in contact with you if selling it ourselves doesn’t work out”.
I think it is time I dispel a few of the pitfalls and landmines that I can help you overcome when the “selling it yourself” route doesn’t pan out. I understand that most sellers have a specific goal when it comes to selling their home – this is obvious by the questions they always ask me – they want a quick sale and for top dollar. The problem is, fast action doesn’t always align with receiving the highest and best value. The fact of the matter is, just because you see homes for sale on sites like KSL.com or Zillow.com, or even utahrealestate.com, doesn’t necessarily represent the actual picture of how the market is performing. There are multiple ways to approach this subject, and the perspective varies not only by your city, but also by price point, home style, neighborhood, and even down to the block your home sits on. For those of you who are still intent on trying the market out for yourself first, let me give you a few strategies:
1. The Underpricing Phenomenon
Under-pricing means that you place your home on the market with a price that is just below what the comparable sales in your area support. As you are probably aware, you cannot know the exact market value of a home until similar homes in adjacent areas sell. These sales give you a range where your home’s sales price should fall between. If you price your home at or below the bottom of the value range, you are underpricing your home.
In popular TV shows like Million Dollar Listing – Los Angeles on Bravo TV, you will see homes underpriced to quickly receive activity. I saw an episode a few days ago where the property was listed at $1.3 million and it received multiple offers within a week and ended up selling for $1.6 million with an all cash offer.
Keep in mind, if you price your home low, this plan could backfire – to your demise. If you don’t know your market and this strategy doesn’t work, you need to prepare yourself to accept the list price. Bidding wars typically only occur when the inventory of homes is very low, interest rates are very low, or if the location of your home is so incredible, that people are willing to go above and beyond to buy your property – in which case, there is no need to underprice to sell.
2. Curb Appeal and Staging
Well-priced homes that make a buyer see themselves living in a home will sell quickly. This is the key to selling – you need to invest serious time getting your home ready to show. This could mean taking out large pieces of furniture and personal items, painting, replacing carpets, finishing floors and possibly even doing minor renovations. The tricky part is knowing what to invest your time and money into that will give you a return.
I have seen many sellers overdo the preparations for selling their homes with the expectation that they will get the money they put into the home back out with the sell – at a profit – only to grow disappointed that they actually could have sold the home without some of the renovations; or even worse, the buyers gutted the home upon moving in and the improvements were for naught. This is where my expertise really helps you know what will and will not increase the value and marketability of your home.
If you take this task on yourself, consider enlisting the help of a home stager and take their advice. The investment of time and money will pay itself back. I have seen too many sellers go overboard on staging their home as well as not spending their time and money in the right places. Don’t make staging decisions in a vacuum – focus on kitchens and bathrooms, decluttering and cleaning. When in doubt, ask for help.
3. Disclose and Inspect ASAP
In Utah, sellers will complete a “Seller’s Disclosure” form and present this to the buyer so that they can order a home inspection within a few days of entering into an escrow agreement. What often happens is that buyers discover things they do not like or do not feel comfortable with after reviewing the inspection. This can cause the buyer to lose confidence in the home and may choose to cancel the contract.
As a seller, it is imperative to present disclosures upfront and even provide buyers with a recent copy of a home inspection report that you may want to order prior to listing your home. This way, they can feel comfortable that there are not any “hidden surprises” being covered up and that you have priced your home to account for whatever work may need to be completed.
Keep in mind that there is little risk in disclosing and inspecting. If you are trying to hide something and the buyer discovers it later, you can expect the deal to fall apart and could even face a potential lawsuit down the road.
I understand that selling your home is a major undertaking. Spend time to strategize and prepare your home for the market. Pricing, staging, presentation, and disclosure all go hand-in-hand. If you want a quick sale, price it right, present it the best you can, and go the extra mile to make buyers feel comfortable with all aspects of your home.
Always know, I am here to help you meet your goals in buying or selling your home. Please feel free to reach out anytime at {801) 885-2558 or email me at brandonrwood19@gmail.com