Selling Your Home 101

So you’re thinking of selling your home? We know the questions surrounding a home sale can feel endless. Click on the icons below to learn more about each of the steps along the path to the sale of your home.

DECIDING TO SELL

HIRING AN AGENT

PRICING YOUR HOME

SHOWING & MARKETING

GETTING AN OFFER

INSPECTIONS & APPRAISAL

SETTLEMENT

Pricing Your Home
Pricing your home right is the single biggest factor in how quickly your home will sell, and price is the number one factor that most homebuyers use to determine which homes to view. Although the price is set by you, the seller, the value of the home is determined by the buyer. Don't allow your enthusiasm to warp your judgment and lead to overpricing.

Most sellers tend to overestimate the value of their home. A good agent will analyze the market and recommend a price that will get your home sold for the most money possible in the shortest amount of time.

The biggest mistake that sellers make is to lower their property price too little, too late. Many people feel they will start with a high price, and then lower it once they get an offer. The problem is that most prospects won't even look at your home if it's priced too high. Most buyers will take the path of least resistance and only look at homes that are close to their actual price range, rather than hoping to negotiate a high priced home down.

What Affects Your Asking Price?

• Urgency: How quickly must you sell?
• Competition: Are there just a few or many homes available in your price category and area?
• Available Financing: What are the current home loan interest rates and is your home eligible for 'normal' mortgage products?
• Recently Sold Homes: What has happened to home sales in your area in the last 6 months?
• Expenses: What are your selling costs?

What Doesn't Affect Your Asking Price?

• Original Cost: Buyers aren't interested in what you paid for the home, only what they will pay.
• Investment in Improvements: Potential buyers will evaluate you home and may include the costs to remove or replace items in their offer.
• Personal Attachment: Loving your home does not change how others feel about it; they will judge it based on their own needs.
• Your Neighbor's Opinion: Your neighbors are not experts on the local home market and buyer's don't care what the neighbors think, they will rely on their own research. Other homes in your neighborhood may not be as similar as you think. Ask your agent for a Comparative Market Analysis of what similar homes sold for.

What Happens To an Overpriced Home?

• You'll Sell the Competition: The "correctly priced" homes look even better if yours is overpriced. Buyers are competitive shoppers.
• Your Home Will Stay on the Market a Long Time: 80% of potential buyers will see your house in the first four to six weeks? If you don't sell them then, it takes approximately three months to replace them with an equal number of newcomers.
• You'll Lose Market Interest and Qualified Buyers: Serious buyers use the value, quality and price of similar properties as deciding factors.
• A Negative Impression is Created: People will wonder why your house is still on the market - they'll believe something is wrong with your home.
• You'll Lose Money: You may have to make extra mortgage payments as well as incur taxes, insurance and unplanned maintenance costs.
• You May Have to Accept Less Money: The longer a house is on the market, the greater the discount off the list price. Often a seller will accept less than fair market value in order to sell because of an approaching deadline.
• Your Home May Not Appraise For the Sale Price: Even if you find a buyer to pay your price doesn't mean their bank will agree. If the appraisal determines that your home is worth less than the agreed to price your deal may go bust.

For more insight on pricing your home I recommend "The Home Sellers Blues", you can download it as an e-book.