Howard's Report on Getting Top Dollar for Your Home

We occasionally meet with a seller who thinks all they have to do is stick a sign in the yard, price the home way above the comparable sales and then just wait for the buyers to rush in.  As sellers, we would all like to command the highest possible price. And every buyer would like to pay as little as possible.  There are many factors that the seller can’t control and there are other factors over which the seller has total control. If you want to tip the sale price scale more in your direction even in a strong market, then follow these suggestions for a more satisfactory result.

What Is a Great Price for My Home? The best way to determine the value of your house is to get three comparative market analyses from one or more agents in your area. Not only will the agents take recent sales data and your home's attributes into account, they also will factor your neighborhood into the equation. Paying for a licensed appraisal at this stage would be helpful but is probably prohibitive. Paying for a professional Realtor is recommended. Statistics by the National Association of Realtors show that homes sold by Realtors average more than $20,000 higher over homes sold by the owner. Select one with a track record of strong local sales and a great marketing plan.  Focus the Realtor on your return … your net proceeds. Your focus on the professional fee is missing the larger opportunity. How will the Realtor achieve 97% to 101% of your agreed listing price? 

Set your price carefully.  Avoid the tendency of some owners to throw common sense out the window when it comes to a realistic asking price. Homebuyers are just as smart as the rest of us. They’re looking at the same comparable sale prices that your Realtor gave you. So then ask yourself, “Why are we pricing the home more than 5 to 10 percent above market prices?  Remember, if you and your Realtor have done a thorough analysis including adds and deducts for different amenities and features, you are likely to end up with an offer close to your home's true value. Calculate the cost per square foot of your house compared to homes already on the market (divide list price by square footage of livable space). If your house has more features or other desirable qualities, you may want to set a higher price.

Don't Go Fishing.  The longer a house sits on the market, the less likely you are to get the best price. Avoid the temptation to “put a hook in the water” and hope a smart buyer will “bite” a high price.  Be aware of what time of the year you’re selling and the condition of the market and then price it accordingly. Don’t let your visions of a high price cloud the reality of your carrying costs like property taxes, insurance, maintenance, association fees, etc. 

Consider a pre-sale Inspection.  A pre-sale evaluation from a qualified home inspector can save you both money and heartache. Find out what the repair list will look like early and fix the affordable items. While “as-is” sales are increasing, the buyer deserves (especially if paying a premium price) a home in good shape and condition. Plus there’ll be less a tendency for the buyer to throw more serious issues into the negotiation if the home generally checks out well.

Buyers Want to Buy a Model Home.  So try to accommodate them. Once you've made the basic repairs, give your house the equivalent of a great facial treatment:  Impress the buyers so they’ll be disposed to pay a premium price for a home in mint condition. Paint with contemporary colors, professionally clean the floors and carpet, replace outdated light fixtures, trim the entry shrubs and put in fresh bedding plants. These and many more ideas are inexpensive ways to take your home from plain to profitable.  Most importantly, get the clutter out and into the garage! You’ve decided to sell your home so forget about what’s important to you. You have to give up a few small things to get that price. It’s show time not business as usual so remove all the extra chairs, marriage photos and bathroom accessories. This is your test: until you look around and feel the house is bare, you still have more work to do. The home will seem larger to the buyer and that’s a good thing.  

Finesse the negotiations.  Rather than negotiate a Realtor fee so low that you end up with a discount broker who does nothing for you, be sure you have Realtor savvy in negotiating and watching out for your wallet.  To get the best price for your property, stay directly out of the negotiations. Expect your Realtor to drive a hard bargain and find out what the buyer’s situation is, shine and polish everything in and around the house and don’t be in a hurry. The buyer usually has more money than time. You need to have time to create hopefully a multiple offer environment.

 Howard Willis, J.D., Realtor, and Broker is affiliated with Keller Williams Partners Realty. He and his wife Allegra reside in Weston where they specialize in providing real estate services to premium residential customers and commercial clients.  You can learn more at www.thewillisgroup.com. Ask for Allegra or Howard at (954) 949-0444, or howard@thewillisgroup.com