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Selling your home in a Divorce Chapter 10

Selling Your Home in a Divorce
Chapter 10

10 HOW TO MARKET YOUR HOME

The primary purpose of this book is to provide insight on how to sell your home quickly and for more money.

The previous chapters were filled with do's and don'ts when getting a home ready for the market.

The goal of the upcoming chapters is to help you understand what determines price and market value of a home, specifically, your home.

Despite the term "buyer's market," it is important to understand that it is always a "seller's market."

Homes are a necessity.

We don't live in caves or nomadic tents.

Real estate is a commodity that will remain so for decades to come.

Your home is unique.

There is no other house exactly like it.

Whatever individuality you have created on your property makes it stand apart from your neighbors'.

Therefore, there are no set rules of when to sell or not, because homes are not sold from store shelves.

Your home's value will be based on similar homes purchased during a particular time, whether spring or fall, winter or summer.

No matter how much you study the market and its current supply and draw conclusions, the real estate market is greater than any one person can speculate.

No one person or real estate professional can conclude that the current market has complete control over the saleability of a specific home.

Bottom line is that you decide the asking price of your home. But how do you decide?

What is the best way to get online exposure?

Do professional photographs make a difference to online shoppers?

What more can be done to market your home?

The upcoming chapters answer these questions to help you sell your home for the best price.

The Price Is Right

A buyer of real estate is no different than a buyer of a painting or a bag of oranges.

The perception of value will always have a prominent seat during the sale, whether it is your home or the bag of oranges.

Perceived value and market value are not the same.

You need to know how to price your home strategically and correctly.

A Toronto realty agency reported that homes sold in August of 2013 within their first week on the market sold for an average of 2.08% above list price.

Homes that grew stale for months sold for an average of 11.53% below their original price.

As a seller, there are two things you must keep in mind as you determine your asking price:

⦁ Sentimentality has no dollar value.

Although you may have many emotional connections to your home, you must avoid placing a higher price on the property for sentimental reasons.

It is highly recommended that you set all emotions aside during the selling process.

Buyers look for cues to figure out your motivation to sell.

⦁ There is no direct dollar-for-dollar correlation between upgrade investment and market price.

If you spend $53,000 to renovate, don't assume you can add that amount to your asking price.

Don't be trapped by making your home the nicest, but also priciest, home for your area.

Market Price vs. Market

If you have a ready-to-buy, bank-qualified buyer who is willing to pay a price you will accept, that is referred to as "market price."

It is an objective fact without influence.

This transaction, once complete, will influence the market value of homes in your area.

You determine the price of your home by looking at comparable local sales provided by a professional real estate agent, your property's condition, and the current supply and demand.

What any piece of property might sell for based on features and benefits in a competitive market, the current supply, and demand of similar homes is its market value.

You might value your home at a higher price than what a buyer will pay or its true market price.

If demand for oranges increases, then they become more valuable, which can affect the price.

If the demand for bags of oranges decreases, the value can no longer influence the price.

Balanced markets will equalize market price and market value.

The perspectives of buyers and sellers also come into play when placing value on a home.

Let's say your home has an abundance of mature trees—a plus in your mind.

A buyer who loathes raking leaves will see that as a negative.

If you just spent $21,000 to replace your roof, you might think you can get a higher price, but buyers expect the roof to be in excellent shape.

Proximity to schools, bus routes, and medical facilities can also create value that certain buyers are willing to pay for.

Buyers look for the right deal, but what they are willing to pay or the bank is willing to finance has limits.

Strategic pricing is your greatest tool when selling your home
For Example:

A homeowner decides to place his home on the market and must decide on an asking price.

By rough estimate, the home's worth falls between $690,000 and $700,000.

There are many homes on the market, so what goes through mind when finding the "right price"?

⦁ "Leave room for negotiations" — Overpricing at $705,000, my home will not entice a buyer, but only makes comparable homes more desirable.

My home will most likely not sell.

⦁ "Price it according to 'worth'" — Buyers will lump the home with like-priced homes, knowing they can buy anytime for $695,000.

⦁ "Underpricing generates interest" — Underpricing at $680,000 will motivate buyers and perhaps create a bidding war.

But if not, I have derailed my goal of selling my home for more money.

When it comes to finding a buyer, pricing your home according to right data available in comparable real priced sales, is crucial to making the sale.

The Comparative Market Analysis is imperative to pricing strategically.

When you ask for one from a real estate professional like me, be sure to review the analysis, ask questions, and get explanations.

If completed correctly, this comparison report not only gives you a great listing price but also reduces the chance of your home being under-appraised.

If you have a well-priced home, you should be showing within the first couple of days on the market.

Offers should come in within weeks.

Remember This
If the perceived value of your home by a potential buyer is greater than the actual price, the more willing he is to buy.

The urgency to buy disappears the closer the price and perceived value are.

Selling by Showing Off

Before the Internet, cell phones, and the social media craze, buyers looking for a home perused the local multiple listing service (MLS) book that was filled with tiny, mostly grainy images of homes.

Photos of featured homes were larger and in color sometimes, but most were black-and-white, amateurish photos.

The photo was insignificant compared to the information provided below it Nowadays, the reverse is true.

Photographs have become the most effective "bait" to attract future homeowners.

Recent studies show that 89% of buyers use online tools to shop for homes before contacting a real estate agent.

They peruse the web, finding homes that appeal to them and then contact a Realtor.

What will make the best first impression?

Beautiful, engaging, crystal-clear photos of homes, inside and out. Getting your home sold quickly takes exposure.

Online marketing through photographs is one of the most important ways to market your home.

Listing photography is a great tool for showing off the best
features of your home.

Bright and colorful shots of welcoming spaces encourage buyers to imagine themselves comfortable and living happily in your home.
By focusing on the unique aspects of your home, like large rooms with great views or amazing architectural features, you can generate genuine interest.

Stage your home to give the appearance of space and light in every photo without distorting reality.

Go Professional

The decision to use a professional is an easy one.

Most real estate agencies will cover the cost of getting professional photos taken.

According to one agency, photos taken by a professional are more likely to sell a house within six months.

The difference in home-selling success rates between homes photographed by amateurs and those photographed by professionals are astounding.

On average, homes ranging from $800,000 to $899,000 that were photographed professionally sold for $23,000 more than the homes that weren't.

Homes in the $600,000 range averaged $16,500 more.

The sharpest photos also increased the saleabilityof the home, with 10% of the homes selling at or above the listing price 44% of the time.

Potential buyers want quality, high-resolution photos when they first go online to shop.

Current trends in visual media demand it, and so will they.

Finding a home is all about an emotional connection for younger buyers, much like their music and movies.

You are basically marketing your home
directly to buyers with an online photo presentation.

You need to wow them Statistics show that high-quality photos can do just that.

Maximum Targeted Exposure
When you hire an agent, they can place your listing on all major real estate portals such as prelist.com and Realtor.ca

Buyers flock there to find new listings.

The agent can also place your home on their dedicated website and their social media outlets.

In the average month, prelist.com alone captures 69% of traffic to real estate websites.

When you chose an agent to represent your home, make sure they can offer the maximum targeted exposure to potential buyers.

Check to see if they provide any of these other technical services to sell your home.

⦁ Visual maps such as Google Earth
⦁ Floor plans or 3-D floor plans
⦁ Video tours
⦁ Updates on buyer activity through agency
⦁ Electronic documents
⦁ Agency application
⦁ Social media exposure

music and movies.

You are basically marketing your home
directly to buyers with an online photo presentation.

You need to wow them Statistics show that high-quality photos can do just that.

Maximum Targeted Exposure

When you hire an agent, they can place your listing on all major real estate portals such as prelist.com and Realtor.ca

Buyers flock there to find new listings.

The agent can also place your home on their dedicated website and their social media outlets.

In the average month, prelist.com alone captures 69% of traffic to real estate websites.

When you chose an agent to represent your home, make sure they can offer the maximum targeted exposure to potential buyers.

Check to see if they provide any of these other technical services to sell your home.

⦁ Visual maps such as Google Earth
⦁ Floor plans or 3-D floor plans
⦁ Video tours
⦁ Updates on buyer activity through agency
⦁ Electronic documents
⦁ Agency application
⦁ Social media exposure

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Data supplied by CREB®’s MLS® System. CREB® is the owner of the copyright in its MLS® System. The Listing data is deemed reliable but is not guaranteed accurate by CREB®.
The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.
The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.