Thursday, July 1, 2010

A Few Key Points for Sellers+

Selling a home can be a very emotional time for any home owner. An owner is usually closely connected to their home and thus parting ways with it is not easy. However, as difficult as it is, it is important to remain objective and to remove as much emotion as you can from this business transaction. Here are a few tips for selling that should help put things into perspective:

  1. Seek buyers who do not reside in the same neighborhood. According to multiple studies, buyers from other areas tend to pay more than local buyers. This is especially true when the buyers come from an area with a higher-priced real estate market. In fact, out-of-state buyers tend to pay from 4-6% more than locals. The explanation behind this phenomenon is quite simple. Buyers coming from a different area will need to pay for travel costs, such as car rental fees, hotel fees, etc. While the buyers can ostensibly stay and negotiate the price of their purchase down, or even choose a different property, the travel expenses can outweigh the smaller price.

  2. When writing a description for the listing, be careful about what you advertise. While it may seem like a good idea to advertise that new coat of paint or the completely new refurnishing, buyers may begin to question why exactly the house needed the repairs or improvements. In fact, if you over-advertise a house, buyers will only be disappointed when they see it. The trick is to pique the buyers’ interests and then astonish them with the great condition of the home.

  3. Pick an attractive real estate agent. A study at Old Dominion University has shown that buyers who find the seller’s real estate agent attractive will pay more. The reason behind this makes intuitive sense. One would assume, buyers are also attracted to personality, charm and poise, but the study doesn’t mention any of these.

  4. Selling a property at the right time can be a very difficult thing to do. Usually people who are optimistic about the real estate market will wait for a later time to sell their home, assuming they will be able to sell it for a much higher price a year or two down the line. Similarly, pessimistic sellers tend to sell their homes too early, since they believe prices are going to fall. However, what usually is the case is that the seller is overly optimistic or pessimistic and sells the home either too early or too late. Be aware of market trends and always consult a professional before making any decisions.

    The last step is probably the most important because it can make or lose you the most money, but when considering a sale you should keep all of these points in mind.

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