As a homeowner you want to avoid painting yourself into a corner where you have to even consider entertaining lowball bids or – even worse – short sales. Fortunately, these real estate land mines are avoidable if you know how to navigate the home selling landscape.
Know the Market
Selling a home is similar to going to school; those who do their homework tend to end up with the best results. Find out how much similar homes are selling for in your area recently – go back at least one to two months – as well as how many days they are staying on the market. It’s also possible to find out how much the owners asked for initially, which could help you rethink your strategy if homes are selling below initial asking prices.
Consult Local Experts
Selling your home can be a full-time job, so why not spare yourself the trouble and find someone who sells homes for a living? Now that you’re hiring a real estate agent, make sure it’s one that knows your area. Their insights into the local market can optimize your pricing strategy and help you avoid any potential pitfalls an out-of-town agent may not know about. Also pay attention to their sales history, as the deals they’ve done in the past – good or bad – will provide some level of foresight into how your experience with them will turn out. By putting in the time and effort to properly vet your realtor, you set yourself up for the best possible outcome.
Price Realistically
In a seller’s market it’s tempting to initially throw out an outrageous dream price just to see if you can get it. But – and here’s another example of your research paying off – a good realtor will advise against that strategy and instead bring you back to reality with an optimistic, yet realistic pricing strategy. Studies have shown that initially overpriced homes tend to end up selling for less than similar homes priced properly from the start. What tends to happen is that once the overpriced home sits on the market for too long, the owners end up dropping the price several times until it finally sells for less than what they should have asked for initially.
Put Your Best Foot Forward
Prospective buyers need to be able to visualize themselves living in a home before they’re likely to make such a large purchase. It’s hard to do that in a house that’s messy, cluttered or overly personalized to your tastes. Your realtor should be able to advise on how best to stage your house to demonstrate the benefits and utility of each space, but it’s up to you ensure the house is spotless with a minimum of personal items. First impressions are important, and you don’t want to risk overwhelming potential buyers with family portraits or turning them off with a dirty room.
Patience is a Virtue
Don’t panic if your home doesn’t sell right away, and don’t jump at any subpar offers just to get the deal done quickly. There are many factors that can affect a home sale, and you should look at all the available info before making any hasty decisions. If your pricing strategy is sound, then dropping the price may not be the solution to your problem. If a bad offer is on the table, or there are multiple bidders, rushing to close the deal is not likely to end with the best result for you. Work with your agent to evaluate whatever situations arise and take time to consider all the options before making a decision.
Whether you’re a young professional buying your first home or a retiree selling your last, real estate transactions are a daunting proposition. The prospect of losing money on a house, navigating appraisals and inspections, and the threat of short sales are scary. But that doesn’t mean you can’t survive unscathed and maximize the value of your home if you’re willing to put in the effort to research and prepare for the process.
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