Selling Your Home in Today's Market

When thinking of selling your home, there are many things to do before calling a Realtor and having a sign put in the yard. Many people assume that they should first have the house put on the market, and THEN start to fix the things that need repair.

First things first, you should Think like a Buyer! If you were out looking for a new home, would you be impressed with one that the seller "promises to repair", or one that is freshly painted, clean, and ready to move into?

Start Making a List! Put yourself in the buyer's shoes. Walk out your front door, go right out to the street, and then turn around. Now take off your owner's goggles (you know, those rose-colored glasses you wear when looking at your home), and look that house in front of you. What do you see? When you look at your house from a buyer's perspective, you will be amazed at what pops out at you. That gutter that is hanging a little, the shutters that are weather-beaten and in need of paint, the tarnished door knob . . . all those little things that you have been meaning to get to, but just haven't found the time. How impressed would YOU be if you were a buyer coming to see this house for the first time?

Do Everything Before Putting Your Home on the Market! Of all the things homeowners control when selling their home, the condition of the property is one of the most important. If the carpets need to be cleaned, then call a professional. Believe it or not, dirty or worn carpets could cost you $10,000 on your asking price. And don't forget that leaky faucet, or loose toilet. Buyers are going to scrutinize every aspect of the house. Don't give them any ammunition when it comes time to negotiate.

I highly recommend for a seller to have a licensed Home Inspection, to see if there are any issues that need to be addressed. This puts you in a better position in your pricing when you already have made repairs, and can present to a buyer a home free of defects. Nothing is worse than having a buyer who wants your home, and then when they have a home inspection completed, problems arise and they have the opportunity to back out of the deal. I have seen many deals lost because something was discovered, after the contract, and it spooked the buyers. Even if you offer to take care of things, the buyer may have that nagging feeling in the back of their mind that they should have seen it and now they've lost that warm fuzzy feeling about buying the home.

The moral of the story is that you should remove all worries ahead of time in order to be in a better position to get more money for your home.

For more information about selling your home, go to www.prchomes.com.

"Why should I use a Realtor?" I know this is a question that many sellers ask themselves. After all, can't you just do it yourself and "save the commission"?

You could. But let me ask you something . . . How much training do you have in negotiations? You have to put yourself in a buyer's shoes. A buyer who calls on a For Sale By Owner (FSBO) is expecting to save some money, so they take the commission off the asking price - I mean of course you as a buyer don't want the seller to keep that fee if there isn't an agent involved! Now the buyer feels that there is some room for negotiating off of the discounted price, so they make an "offer" on that - Usually another 3-5% off the net price.

Now subtract the cost of all the advertising you will need to do in order to get the word out about your property. You will need to put classified ads in the newspaper (not a cheap venture), and run ads on the internet on "FSBO" websites that make you pay $1500 or more UP FRONT, even if the property doesn't sell. You'll need to buy signs for your yard, and try to find as many other ways as possible to let people know your property is for sale.

We are currently in a buyer's market, which means that buyers now have a huge amount of homes to look at and consider when making a purchase. What makes yours stand out more than all those listed? Who will actually know that your home is for sale? How is your home going to be in front of all of those people who are working with a Realtor, looking for a property like yours? The only way you are going to get it to stand out is to ask for less than market value, so your property is a "better deal" to the buyer.

Now take into consideration all of the relocation buyers, and first-time home-buyers that are either not going to even know your property exists, or are not wanting to deal directly with the seller without having someone there to help them make the right decisions and help them get financing? A relocation buyer doesn't get the local newspaper, and they certainly don't have much time when they are here to drive all over creation and happen upon your sign. If you are looking to purchase property in a new area, where would you start to look? . . . www.Realtor.com. Then their relocation coordinator sets them up with a broker in the area they are moving to, and they are off to see properties.

If you have a mortgage on your property, every month that it doesn't sell takes the money you are paying in interest payments away from your profit. Say your interest each month is $600 (and that is usually on the low side). When you wait 8 months, you have lost another $4,800.

So, if you started out asking $200,000 for your property (hoping that it is priced at market value so you can sell it or it at least attracts some attention), you then subtract the commission, advertising expenses, and interest payments, not to mention the amount the buyer haggles out of you negotiating the price. How much profit do you have left? And who is there to consult you if something goes wrong with the sale, or the buyer can't get financing? Do you know what financing opportunities there are for a property like yours? Do you have a plan B for the buyers if they can't get the loan?

Selling your property on your own might save you paying a commission, but it will also keep you from walking away with as much as you would have if you'd had an experienced, licensed, full-time professional do it for you.

When your home is on the market, it's important to make it readily available to be shown to prospective buyers. Here are some tips to help you get ready:

- Increase your chances. The more people who see your home, the more likely you are to sell it quickly. Yes, it's inconvenient to show your home at dinnertime, but if the people buy your home, isn't it worth it?

- There shouldn't be any major housecleaning at this point. The kinds of tasks you ought to be concerned with now are simple ones: making the beds, stuffing last night's dirty pans in the dishwasher, picking up loose newspapers, etc. Even young children can participate by "cleaning" their rooms.

- If the season is appropriate, open the windows in each room and let in some fresh air. Stale air isn't appealing. And if you smoke . . . do it outside while your house is listed. Non-smokers are very sensitive to stagnate smoke smell, and nothing is more of a turnoff.

- Keep your thermostat at a comfortable setting. If it's too cold or too hot, a buyer won't stick around very long to really see what your home has to offer.

- Turn on all the lights for every showing before prospective buyers arrive. This also gives you an opportunity to select the lighting effects you want for each room. No area of your home should be dark.

- Turn off the television and turn on light, background music.

- Arrange for pets and children to be at a neighbors. Perhaps it's unfair to lump children with pets, but young children can distract buyers from their purpose. Keep pets away from buyers.

- "De-personalize" the house as much as possible. Take down any extra family pictures that are hanging on the walls or displayed on the shelves. They will often distract the buyer's attention from what is most important ... the house!

- Most importantly, please leave the home during all showings. It is uncomfortable and difficult for buyers to view the home when owners are present. Oftentimes, they will rush through the home and not give it the proper attention your home deserves. It is also hard for the buyers to "picture themselves" living in the home when the sellers are present.

For more tips when selling your home, see my Seller's section at Pearl River County Homes (http://www.prchomes.com/seller.html)

Regardless of the market - be it hot or cold; regardless of the season - be it summer or winter; and regardless of the fact the house down the street has been sitting on the market forever without any takers - you can accomplish the goal of selling your home fast and at a fair price if you follow a few simple principles:

1. It's a HOUSE, no longer your HOME - You must detach yourself emotionally from the sale of your property and view it as just another commodity for sale on the open market. It is no more and no less a residential property for sale to a buyer who is ready, willing, and able to purchase it.

2. Perceived Value vs Market Value - Being a commodity on the open market, a house is only worth what other people are willing to pay for that particular style of house, that age of a house, in that particular area, and at this particular time.

3. What would an Appraiser say? - A lender always hires a professional appraiser to evaluate the value of a house before underwriting a loan. The most important factor an appraiser uses in determining the value of a house is the reliable data gathered from comparing the selling price of similar properties in style, size, location, and relative time frame - within the last 180 days.

4. Willing Buyer - You can hire an appraiser to give you a documented opinion as to your house's curent value. Realize, however, the appraisal you receive is only the appraiser's professional opinion based on reliable market data - but it is only an opinion. Only a buyer willing to put money in your pocket can tell you what your house is actually worth. And be aware that appraisals that are completed for a Seller are often too high - appraisers are more likely to overstate the value of a house rather than understate it, when doing a Seller's Appraisal or Bank Appraisal.

5. Ask the experts! - Another way to help determine what your house is fairly worth is to ask a Realtor. Many Realtors offer a free "comparative market analysis" in the hope you will list your house with them. Get the broker's opinions in writing and obtain at least three CMA's from different brokers. This will protect you from a common but tragic practice of telling you what you want to hear. In the trade it is called "buying the listing" and it happens with appalling frequency.

6. Look at the Competition - Learn the asking prices of similar houses for sale. While actual sales prices of recently sold houses are the best source of information, knowing the asking prices of houses still on the market will give an idea of the top range of market values in your area.

7. What's the market temperature? - Gain an overall view of the local housing market. Is the market hot or cold? Is it a buyer's market or seller's market? It is also helpful to know the total inventory of houses currently on the market in relation to the number of houses currently pending sale. For instance if 356 houses are for sale and 42 houses are pending sale, the ratio is 1:8. This means there is one buyer per eight houses for sale. Called a "Total Market Analysis," this data can be the most powerful information you can gather to best position your house for a fast, profitable sale.

Given all the above data you should now be in a position to determine an asking price for your house which will ensure a fair profit and a fast sale. The trick is to price your home a little below current asking prices and a little higher than actual selling prices. The actual price you choose would best be determined by a total market analysis and would ensure a lot of buyer activity as well as providing you a fair, over market profit. It's like having your cake and eating it too!

With the right information, you can price your house to sell for the most money, in the shortest amount of time, and with the least amount of hassle. Simply follow the seven basic principles and you are well on your way to a fast, profitable sale.

If you would like in depth information on how to best price your home for a quick, profitable sale as well as receive a free, complimentary "Total Market Analysis" - contact Michelle Fradella at Pinnacle Real Estate Services - 601-799-1848 or 601-569-0075.

The housing market has become much more competitive. Many communities are beginning to see homes remain longer on the market and the bargaining pendulum swing in favor of the buyer. This is called a buyer's market, as the number of available homes outnumbers the buyers. As a seller, your challenge is to turn a buyer's market to your advantage.

The right price is vital, because overpricing your home can cause you to eliminate potential buyers and lengthen the time that your home stays on the market. But equally important is making sure that you give your home a competitive edge by giving it creative eye appeal.

Many homeowners make the mistake believing they are selling "their home," but once on the market your home is actually a product. You need to create an environment the buyer can't resist. In other words, do everything you can to make the home so attractive, charming, cozy, inviting, comfortable and exciting that a buyer will want to buy that lifestyle for himself.

This can be accomplished by making just a few improvements in your home's presentation. Here are some guidelines to make your property distinctive and memorable.

1. Eliminate clutter. Have you ever noticed how model homes are perfect with no mess, clutter, or mass of personal belongings heaped about? There should only be a few exquisite and well-placed accessories on tables, desks, chests, etc. Also, clear kitchen and bathroom counters and furniture of everything except decorative accessories. Put the personal things--cosmetics, toiletries, clothes, bills, papers, and homework--out of sight. Tuck wastebaskets under counters or inside cabinets. Clutter and personal belongings detract from the important features of the home.

2. Create a color theme. If you embark on any investment decorating, like painting, wallpaper, draperies or new furniture purchases, create a color theme that's consistent. Wall-to-wall carpeting should be the same throughout the house. Neutral colors are best to please all tastes.

3. Rearrange the furniture. Just the slightest readjustments can make a big difference. Pull the furniture from against the walls to create a more intimate setting. Move furniture from one room to another. That extra armchair in the living room may create a cozy sitting area in the guest bedroom.

4. Create custom spaces. Luxury master bathrooms, decorator kitchens, built-in cabinets, computer workstations, exercise rooms, and children's play areas are the kinds of features that generate sales appeal. Even if you don't have these specific custom spaces, you can fashion them or suggest the potential for creating them. Accessories, mirrors, plants and fluffy new towels can generate a feeling of luxury even in a plain-Jane bathroom. Turn an extra bedroom into an exercise room if you've got the equipment, or a loft space into a child's play area or hobby center.

5. Keep it clean and pristine. Dust, vacuum, mop and polish on a regular basis. You're not selling the furniture, but a high shine on wood furniture and floors can make a room sing. Touch up nicks on walls and make sure the porcelain sinks and tubs and metallic fixtures shine. Windows should sparkle. Keep yards and landscaping neat and attractive. Add color spots of flowers to perk up entryways and yards.

6. Consult with a professional. There are decorator professionals trained to "stage" a home for sale. They are able to offer an objective view of what buyers are looking for in your competitive market. Depending upon location, neighborhood, demographics and price range, the special touches that turn on buyers may range from splashy master bathrooms and gourmet kitchens to children's play areas or home offices.

You don't have to spend a great deal of money to give your property the competitive edge. Just try to imagine the kind of lifestyle your target buyer would enjoy, and use a few decorative touch-ups to create it.

Find out more about selling your home at http://www.prchomes.com

A buyer's first impression of a home is absolutely one of the most important things to consider when it comes to selling your home, especially in a difficult market where there is a lot of competition. Many people worry about curb appeal, how the lawn looks, how the front door looks . . . and those things are very important. BUT there is one thing that many sellers fail to consider when putting their house on the market. . . HOW DOES THE HOUSE SMELL?

I attended a Realtor Open House this afternoon, where a local Picayune Realtor was showcasing the house to all Realtors in the area giving them the opportunity to know the house and possibly match it with one of their buyers. When I opened the door and started to walk in, the overpowering smell of cigarette smoke hit me like a ton of bricks. My lungs seized up, and my eyes started to water. And the problem wasn't that a Realtor was smoking in the house - the problem was that the Sellers smoke in the house on a regular basis and the house oozes the smell out of every pore.

Buyers are very sensitive to the sights, sounds, and smells of a house they are considering buying. I can tell you from experience that if a house smells, the buyer isn't going to spend much time looking at it not matter how beautiful it is, or how perfect it might be for them. Their thought is "How am I ever going to get that smell out?"

Problem is that sellers don't always realize that their house smells. If you are around a smell long enough, your nose will adjust and it's not so noticeable anymore. If you smoke, you don't realize how the smell clings to your clothing, your carpeting, your walls. Pets can also emit odors (especially overloaded cat boxes, or wet dog bedding). And if the house sits empty, without any air conditioning circulating the air, or with moisture trapped in, it can smell like mildew, which is another smell that grabs my lungs like a vice grip.

When you put your home on the market, you have to start thinking about it as a marketable item, and not your home (after all, you're not going to be living there once it sells). You have to look at your home from the eyes of a Buyer, and the nose of a Buyer too! If you smoke, air out the house, Febreeze the furniture, set up some air fresheners (the ones that plug in the wall work pretty well - and I recommend a cinnamon smell), and for Heaven's sake - - - go outside to smoke every time until the house sells!

Now, if you have pets, be sure to keep cat boxes cleaned regularly (right before a house is shown is the best because chances are Fifi just came out of there and left a present for you), remove the dog bedding, and take the pets with you when you leave for the showing.

Happy homes appeal to Buyers, and a happy home is one that smells good, and invites you in.

1. Plan ahead by organizing and budgeting. Develop a master "to do" list so you won't forget something critical. To estimate moving costs, use a moving calculator.

2. Sort and get rid of things you no longer want or need. Have a garage sale, donate to a charity, or recycle.

3. But don't throw out everything. If your inclination is to just toss it, you're probably right. However, it's possible to go overboard in the heat of the moment. Ask yourself how frequently you use an item and how you'd feel if you no longer had it. That will eliminate regrets after the move.

4. Pack like items together. Put toys with toys, kitchen utensils with kitchen utensils. It will make your life easier when it's time to unpack.

5. Decide what, if anything, you plan to move yourself. Precious items such as family photos, valuable breakables, or must-haves during the move should probably stay with you. Don't forget to keep a "necessities" bag with tissues, snacks, and other items you'll need that day.

6. Use the right box for the item. Loose items are prone to breakage.

7. Put heavy items in small boxes so they're easier to lift. Keep weight of each box under 50 pounds, if possible.

8. Don't over-pack boxes. That will increase the chances that items inside the box will break.

9. Wrap every fragile item separately and pad bottom and sides of boxes.

10. Label every box on all sides. You never know how they'll be stacked and you don't want to have to move other boxes aside to find out what's there.

11. Use color-coded labels to indicate which room each item should go in. Color-code a floor plan for your new house to help movers.

12. Keep your moving documents together in a file. Including important phone numbers, driver's name, and moving van number. Also keep your address book handy.

13. Back up your computer files before moving your computer.

14. Inspect each box and all furniture for damage as soon as it arrives.

15. Remember, most movers won't take plants. If you don't want to leave them behind, you should plan on moving them yourself. If you are moving across state lines, you will want to make sure that there will be no issues with moving those plants with you. Some states will not allow you to bring certain plants in.