SELLING YOUR HOME

Understanding Market Conditions

The real estate market is always changing. It helps to understand how market conditions can affect your position as a seller.


Market Conditions

Characteristics

Implications

Buyers Market:

The supply of homes on the market exceeds demand.

High inventory of homes. Few buyers compared to availability. Homes on the market longer. Prices tend to drop in this type of market.

Your home may lake longer to sell. Less negotiating leverage in terms of selling price.

Seller's Market:

The number of buyers wanting homes exceeds the supply or number of homes on the market.

Smaller inventory of homes. Many buyers. Homes sell quickly. Prices usually increase.

You may have more negotiating leverage and obtain a higher selling price for your property.

Balanced Market:

The number of homes on the market is equal to the demand or number of buyers.

Demand equals supply. Homes sell within an acceptable time period. Prices generally stable.

More relaxed atmosphere. Buyers have a reasonable number of homes to choose from.


Your Century 21 Real Estate Professional can tell you the market conditions at the time you are considering selling your home.

 

Pricing Your Property

The single most important decision you will make with your Century 21 Real Estate Professional is determining the right asking price for your property.

Everyone has his or her own opinion but what you want is an honest opinion from a proven performer who will prepare a market evaluation you can trust. They must have viewed the comparables, preferably sold some of them too, to ensure they are comparing apples to apples, not Oranges!

The right price will ensure your property is shown only with similar quality homes not superior product. It should sell faster and for closer to your list price. If you price your home right it should sell within 2% of list price.

Don't over-inflate the price to "leave room for negotiation". First you need to get an offer. If you're overpriced you may not get the opportunity to negotiate because you may experience low activity levels.

Remember the real estate agents showing your home are working for their buyers, they will not necessarily show overpriced listings without forewarning their clients or they may not show it at all. Your property may be competing with superior homes that are well priced.

Most buyers have a specific price range in mind. Potential buyers may miss seeing your home, while looking in a lower price range.

The initial few groups of purchasers through your home will be the pent up demand, those buyers who have seen everything else on the market and now shop just the new listings. They will be "educated" as to what market value is and they may refrain from making an offer because you are priced too high. In the initial stages of a listing the buyers will assume you are firm in your asking price. Remember these buyers are ready to act if they see what they want at the price they are willing to pay.

It is critical that your home looks its best every time you show it. In some cases that means extra cleaning, often on short notice, then vacating the home for potential buyers to have a thorough look around. No one wants to do this any more than necessary. Price it right and you eliminate the potential of extra time on the market. I promise the thrill of having a perfectly clean house wears off quickly as we fight with our children to keep it that way, week after week.

When showing your home always open the blinds and turn on all the lights, if it is convenient, so your home looks as bright as possible, then the Real Estate Agent does not have to fumble looking for the light switches. Professional Real Estate Agents are trained to shut the lights out for you on their way out.

First impressions are critical to the sale of your home. If their first impression is "the price is too high" that sticks with them. If they see items that require simple maintenance they may jump to the conclusion that many other items have been neglected too.

 

Preparing to Show Your Home to Potential Buyers

First impressions are lasting impressions. You will want to make sure that buyers looking at your home are left with the best possible impression. Your Century 21 Real Estate Professional can help you achieve that goal.

Exterior:

Interior:

 

The Major Elements of an Offer

1. Price

Depends on the market and the buyer, but generally, the price offered is different from the asking price.

2. Deposit

The deposit shows the buyer's good faith and will be applied against the purchase price of the home when the sale closes. Your Century 21 Real Estate Professional can advise you on the suitability of the amount of the deposit being offered.

3. Terms

Includes the total price the buyer is offering as well as the financing details. The buyer may be arranging his/her own financing or may ask to assume your existing mortgage if you have an attractive rate.

4. Conditions

These might include "subject to home inspection" "subject to the buyer obtaining financing" or "subject to the sale of the purchaser's property"

5. Inclusions and Exclusions

These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors. Never assume something is included with the home unless you list it as a chattel. 

6. Closing or Possession Date

Generally, the day the title of the property is transferred to the buyer and funds are received by the seller, unless otherwise specified.