Responding to what buyers are looking for can help you maximize your return!
In today’s competitive market, you really have to stand out to capture a buyer. It is commonly known that there are three vital factors that determine salability of a home; location, price and condition. Taking an in-depth look at each factor as it relates to selling your home can help you easily determine if your strategy will produce a sought after stand-out.
Location, Location, Location!
This is such a popular expression in the real estate industry. It’s almost as if nothing else matters. In fact, this is very nearly the reality of it. The prettiest home in town with all the bells and whistles can’t draw buyer attention if it is surrounded by alligators. With so many fluctuating dynamics affecting location such as new road construction, neighborhood maintenance, and traffic flow changes, it can be difficult to predetermine a good one. A stunning home in a posh, gated community would lose tremendous value if, after years of gaining equity, a major thoroughfare were built behind it. The key items that buyers consider when evaluating a home’s location are accessibility, topographical factors such as highways, utility lines and railroad tracks, neighborhood amenities and overall desirability. Location is the one element in the equation that cannot change, so if it is less than prime, the other 2 factors have to take up the slack.
Price
Often the bone of much contention, pricing your home right can make the difference between a swift sale and a languishing listing. A home with an inflated price tag will not even make the showing list of most agents. Setting the price on a piece of real estate is much more involved than coming up with a figure you would like to get. Several factors must be considered, including recent home sales, market conditions and the condition of the home. Among common methods of calculating listing price is to use a price per square foot calculation. This is done by analyzing comparable homes recently sold in the area, making adjustments for upgrades and amenities, and working some mathematical magic to determine the price your home should fetch. Thankfully, real estate agents are experts in assessing the value of a home. Generally, active agents who specialize in certain areas are aware of everything going on in that segment, and are the best resource in accurately pricing your home.
Condition
This is the factor that most homeowners consistently lose money on. Often overlooked, it is the one factor that sellers have the most control over. When the For Sale sign goes up on the lawn, your home needs to be dressed in its Sunday best. Potential buyers walking through the door determine within 10 seconds if the home is going to be a contender. They need to visualize themselves living in the home, and the more universally attractive it is, the easier it will be for them to create that bond. Home to most people is not only where they live, but how they live. All repairs and updates should be made before opening the door to buyers. That leaky faucet that you’ve gotten used to after all these years won't go over well with buyers, who naturally gravitate to the biggest and best value for their dollar. Small tasks such as removing dated wallpaper (authors note: ALL wallpaper is dated!) and painting a neutral color yield a 796% return on the cost. Cleaning and de-cluttering, with a whopping 594% return on investment, are by far the most important tasks on the home seller’s agenda list, yet frequently this is the task that gets the least attention. Condition will directly impact price, so it makes sense to put as much of your home's equity in your pocket as possible. Be careful how you spend your preparation dollars, though. Over-improvement is just as bad, if not worse, than not making any. Investing $50,000 on a new kitchen may not "pay you back" when it's time to sell unless it compares to what purchasers expect to find in your market range. With the other 2 factors under consideration, there is only so much you can invest before you hit the point of no return…on investment!
