So, your home didn't sell. Hummmppphhhh!!! Aughh!!!! Troubled??
Who ya gonna call, Ghostbuster?
So, right now you are inidated with letters, calls and everybody out there in real estate world has the answer. YES.
The average Realtor® does not realize that you, the consumer has expectations much higher then just putting a sign in the ground, putting your property in the MLS, the company website, posting on Craigslist and allowing for natural syndication. What we, as Realtors® do is a lot less mysterious; it's all out there on the Internet for the taking.
So, did a friend or a relative list your property? Maybe a Realtor® that doesn't market and prospect in your marketplace? Oh, maybe they list but do they put the property under contract and after how many days? 155 days? 232 days?
Alright, let's skip all this jumbo mumbo and get to the point. You've canceled or expired on your property listing that has one photo, which btw the consumer just skips over your property because you had no content rich information or photos to keep their interest. If you don't put your best foot forward on the internet, like dating, the answer is....... NEXT.
Let's look at some Real Estate Truths ......
Truth 1: The price of your home should be based on the last sold property in your area.
If it's priced OVER it's fair market value, it will .....
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Not attract as many buyers because they'll think it's out of their price range.
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Take longer to sell.
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Make competing properties look good.
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Become "shopworn".
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Be overpriced in minds of agents and buyers, and they tend not to forget!
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Cause you to loose valuable time and miss out on buying your dream home.
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Sell at a lower price point due to the extreme number of short sales and foreclosures in the area that are reducing the median for homes every month. And we're not talking pennies. We're talking some serious chunk change!
Truth 2: The fair market of your home is determined by the market - that is, what today's buyer's* are willing to pay.
Buyer's are comparing your home to other homes now on the market. They don't care about:
What Your What What You What It Costs What You
Neighbor Another Spent on to Build Spent On
Says Agent Says Upgrades Today Repairs
What You What You What You What You What You Want
Spent on Spent on New Paid Need
*There are four types of buyer's in today's market:
The first kind are in a hurry - they are transferring and need to find a place in 3-4 days. They are with a Realtor® because they want to see as many homes as they can in the short time they are in town.
The second kind are not in a hurry, yet they want someone to hold their hand. They are frightened with all the new mortgage rules. They work with a Realtor® because we hold their hand and explain every step. (not to belittle the buyers, btw)
The third kind are sharks. They want to buy a home 10 cents on the dollar. They want you to lose so they can win.
The fourth kind like to look at homes. They don't intend to buy nor can they buy but they love to look at houses.
Truth 3: Your home generates the most recent interest in the real estate community and among potential buyers during the first 30 days on the market.
If your your home is not properly priced and staged** during this next time, you will miss out on the peak level of interest!!!
**STAGING: By pricing your home correctly and then staging it effectively, it will deliver the "one-two punch" to get your home sold for the most money in today's tough market in the shortest period of time* *(Less then the average market time).
Overall Considerations
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Declutter
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Clean
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Maintain and Repair
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Correct any code violations or health hazards (Chicago Code)
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Curb Appeal - Create, if none (is 17% of the pricing, per NAR)
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Create an atmosphere
What Main Areas? The Entryway, Living Room, Kitchen and Master Bedroom
Simple Staging vesus Extensive Services:
Simple Extensive
Remove Clutter Remove Clutter + Significant Home Repair
Clean Clean + New flooring and
window treatments
Paint Paint
Rearrange furniture Rearrange furniture + Upgraded Kitchen
create space and flow create space and features
flow
FACT: In today's buyer's market, buyer's buy the home with the best value. When you price yours to be the best value, you may have more than one buyer interested creating an auction effect, driving the price up, getting you more money.
You do want the most money, right?
Don't kid yourself! We all look the Sunday Paper for the best values at the grocery store, don't we?!!!
FACT: In a buyer's market, real estate becomes a commodity and if not priced correctly, it will not move. A great rule of thumb to keep in mind is that 80% of marketing is price. Unless buyer's perceive value, they will not buy!
You do want to sell your home before the median price drops more, right?
POINT: If you went to a doctor and the doctor knew you had a terrible disease, would you want them to tell you or would you rather have them say, "Go home and enjoy?" Of course, you would want to know what you had and what to do better.
Well, I'm the professional, like a doctor and I'm telling you the market shows we need to price it right. Otherwise you are going to have a terrible disease called "No Showings!" And when you have no showings in a market that is going down every month, then you are loosing money daily.
You want the most money, don't you?
Perspective on the Market
How's Your Market?
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People always need to buy or sell
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Markets always shift over time - cyclical nature
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Three ways to close the affordability "gap"
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Lower Home Prices
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Increased Borrowing Power (i.e., lower rates, new FHA program and increased limits and lesser rules)
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Increased Income
What are Buyers and Sellers thinking?
Seller beliefs
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Inflated sense of value
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Can't sell for what they need or want
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Can sell "as is" without improvements
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Marketing and open house will sell
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Can't afford payment = lose home to foreclosure
Buyer beliefs
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Values may continue to go down
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Plenty of time to look and buy
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Seller will take almost any offer
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Wait for more homes to come on market
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May not be able to get a loan
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Great time to invest in real estate
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