With the real estate market recovery imminent in the not so distant future, many homeowners are finding themselves in a position that has been foreign to them for years. The proverbial question that is on their mind is, “When is the right time to sell my home?” As the market experienced its greatest recession in decades with high unemployment and widespread layoffs, many people could not afford to sell their homes even if they wanted to. The common phrase thrown around is, “My house is underwater,” which essentially means that because a person’s home value has dropped so significantly, their mortgage balance is now higher than the value of their home. These homeowners could not sell unless they paid the difference out of pocket.
That was the bad news.
The good news is that with the recovery of the housing market and home values steadily increasing, the difficult situation that sellers have experienced for the last seven years is now turning into a positive opportunity. Many sellers are now seeking advice on the value of their home and what they can do to maximize that value in a cost-effective way. Here are four powerful suggestions I offer to sellers to keep in mind when planning to sell their home:
1. Choose a broker who has the local market knowledge to sell your home. Many brokers are not specialists in a particular region, and you are doing yourself a disservice by hiring a broker who does not have the market or neighborhood expertise to get the job done.
2. Stage your home! From the storage rooms to the landscaping, you want your home to appeal to a very wide audience and as many potential buyers as possible. In order to do that, you must determine what is appealing or unappealing when displaying your home. Landscaping, decluttering, and minimizing all play a very important role in the sale of a home. A Realtor who is certified in home staging or a professional staging company can help assess your home and make appropriate recommendations.
3. Be ready to negotiate. It is very rare for a home buyer to walk into a home, love every single thing about it, and want to make a full price offer with no conditions. How great would that be! Unfortunately, reality tells us that it never quite happens that way. I advise home sellers that they should always be prepared to negotiate either on price, closing cost credits, or minor upgrades. Most buyers want a deal, so be prepared to give them that feeling of gratification, even if it’s a nominal amount.
4. If you were considering giving the buyers a credit for new carpeting, interior painting, or new siding, get it done before you sell instead. Many studies have shown that if you get those renovations done up front, you will not only demand a higher value for your home. It completely offsets the actual costs of those upgrades, and you will also sell faster because, as it appeals to a wider audience of buyers.
Welcome to the real estate recovery, and happy home selling!
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