Step 1: Deciding to Sell
Keep in mind that every real estate transaction is different but all home sales ultimately share the same steps, regardless of the property. Together, we will work closely to ensure that the proper steps are taken and that the transaction is tailored to your needs.
WHY SELL?
You’ve decided that you’re ready to sell your house. Here’s an important question: Why are you selling? Think about the reasons why you’re selling your home and be prepared to verbalize your motivation to us. Here are some common questions:
Have you outgrown your home?
Are you moving for a new job?
Do you want to move closer to a certain school district?
Are you downsizing?
Are you an empty nester?
The answer to all of these questions will help us better assist you in selling your home, as will the answers to the following:
What are your goals in selling?
How quickly do you need to sell?
Do you have a back-up plan if your home doesn’t sell?
If your home doesn’t sell when you need it to, is it possible to rent your home and cover your mortgage?
PRICING YOUR HOME
There are few factors to consider when selling a property: location, price and condition. Two of these items, price and condition, can be changed. Probably the most important of these three elements is pricing and our goal will be to ensure that you receive the most money for your home. A Comprehensive Market Analysis (CMA) is a report that compares similar homes that have sold in the past six months. Comparable sales are homes that most closely resemble your home. Homes in the CMA are chosen for similar location, square footage, age of construction, amenities upgrades and condition.
The CMA is a tool used to determine fair market value and pricing of a home. It is critical to price homes close to the fair market value. Underpriced homes will sell too quickly and shortchange sellers. Homes that are over-priced will waste crucial market activity. The majority of the market activity, approximately 80%, occurs within the first six weeks on the market. An overpriced home that sits on the market gets stigmatized. People assume that something is critically wrong with the house the longer it’s been on the market.
Another important element to remember about pricing is that an appraiser must confirm the value of the contract sale price in order for the lender to approve the sale.