The quick sale

Written by Paul Kounnas | Monday, 16 April 2007

Most buyer interest generally occurs within the first two weeks a home is on the market. The early buyers you may reject are usually the buyers who are prepared to pay the highest price.

The average buyer looks for ninety days before they buy. When a new property comes on the market, there is a high level of buyer activity early.

If they like the home buyers will express an interest, otherwise they’ll keep looking. By the second week, the interest tends to tail off very quickly. So your best chance to get the best price is in the early days of the home going on the market. ...

If your home doesn’t sell to the buyers who are currently on the market and ready to buy, you will have to wait for new buyers to enter the market. The longer your home remains unsold, the greater the risk of damaging its value. The number of buyers in the market for your home will be less, not more, the longer the home stays on the market, incidentally so will the price. High prices come early.

When your home first goes on the market you are excited and optimistic about the process, the salespeople are keen to show their buyers through and those buyers are also full of anticipation to see a new property on the market. This is the best time to sell.

Be aware that offers don’t last forever. When a buyer makes an offer on a home they are excited about owning it. But if they are faced with rejection or procrastination by the sellers, their enthusiasm can sometimes quickly fade. Other people may also start talking them out of it. Consider the early offers carefully and respond within reasonable time. Don’t make the mistake of thinking that because you received an early offer, that there will be more or better offers later.

What is your property worth?

Written by Paul Kounnas | Monday, 09 April 2007

Quite often, the owner’s expectation of the value of their home is higher than what buyers may be prepared to pay.

Agents will tell you that your home is only worth what the buyer is prepared to pay for it. I disagree, your home is worth what a fully qualified and skilled negotiator can get the buyers to pay. Sellers want to sell for as much as they can while buyers want to buy as cheap as possible. Only a trained negotiator can negotiate with the buyers to get the highest price.

As an owner you tend to see the good features in your home. Rarely do you see the faults, and if you do, ...

you tend to underestimate their significance. In economics this is called ‘the endowment effect’, the natural tendency to place an unrealistically high value on something to which you are personally attached. The sale of a family home is a classic example.

Unlike the owners, a buyer simply doesn’t have that emotional connection to the home. Interested buyers will have a price range that they are willing to pay for your home. This is based on their assessment of the market, your home and its presentation, what other similar homes have sold for. A buyer would always prefer to buy at the bottom end of their price range, however, an agent with good negotiation skills will be able to get you the buyers highest price.

A home owner’s biggest challenge is accepting the fair market value of their home. What does not determine the value of your home is; Your neighbours evaluation, how much you spend on renovations, or the amount you need to buy elsewhere.

To set a realistic price on your home you have to cast aside all of your preconceptions and do a little research. Look at current sales of comparable properties in your area.

A common method used by home owners is to get an appraisal from a few agents. You must remember that agents are not professional valuers and most of them do not guarantee their price.

Your competition in the market

Written by Paul Kounnas | Monday, 02 April 2007

The real estate market, just like any other market, involves competition. When you put your home on the market your competition is the other homes for sale and the other agents.

How do you get buyers to choose your home over other homes on the market? You cannot easily change your home’s features nor its size and location, but you can beat the competition by presenting your home better.

Although no two homes are ever alike, many homes offer similar accommodation so buyers will use two things to compare them; price and presentation. If your home is not superbly presented and you are not willing ...

or able to improve the presentation, you limit your capacity to compete. Your only way of beating the competition is to offer your home for less than the other homes.

When selling your home do some research and be realistic with your expectations. have a look at what other homes are on the market, at what price and what condition are they in? Ask your agent for a list of similar homes they havesold in recent months and ask them about those homes. Having knowledge of recent sales and what other homes are currently on the market for, allows you to base your asking price on real facts. You can then decide how competitively you would like to price your home. You should set the asking price on your home with the help of an agent you can trust.

Just as the presentation of your home can translate into tens of thousands of dollars in the price you achieve, so can the right agent.

Your agent has to be skilled enough to persuade buyers to inspect your home and buy it in preference to other homes they may have seen with other agents. This is what you pay the agent to do, to sell your home at the best possible price. So choose your agent carefully, they must have good sales skills and be a good negotiator.

Real estate tips for sellers

Written by Paul Kounnas | Monday, 05 March 2007

The most important decision you will ever make when selling your home is selecting the right real estate agent. It could mean a difference of tens of thousands of dollars more in the price a good agent can negotiate for you.

1. You want an agent who is competent, honest and whom you can trust and believe will act in your best interest at all times. Recommendations from family, friends and acquaintances can be a good place to source information.
2. Don’t just choose the agent who quotes you the highest price (this is a mistake many seller’s make which leads to disappointment and sadly a ...

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   loss of thousands of dollars). Ask the agent to show you sales evidence of comparable properties. A good question to ask is “Do your properties sell for the price you quote sellers?” Ask for proof.

3. Remember agents do not set or control market prices, the buyers determine what price they want to pay, so you need a good negotiator acting for you.
4. Present your home so that it looks its best. The outside appearance is most important. Buyers will form their first impression of your home from outside and then will be influenced by the internal presentation and atmosphere.
5. Tidy up the garden and if possible add appeal with some colourful flowers.
6. De-clutter the home to make the rooms look neat and spacious.
7. Let lots of natural light into the house and make sure its clean and airy. 
8. If your paintwork is looking a little dull, consider a fresh coat of paint. 
9. The kitchen and bathrooms are a big influence on the buyer’s opinion of your home, make sure they are clean and free of clutter.

A good agent will help you with the right advice and how to have your home looking its best so they can get you the highest price.