SELLING YOUR HOME IN A BUYER’S MARKET | FRISCO TEXAS

There are many who have thought about selling their home but have not due to the decline in market values over the last few years. This is understandable UNLESS you are going to be buying another home under the same market conditions!

Sure market values have dipped a bit here in the Metroplex. The value of homes in many towns has dropped by 10% or more since the peak in 2006. The $300,000 home you bought in 2006 may now have a value around $270,000. The point is if your are staying local it does not really matter. Why? Simple… you will be buying under the same market forces that you did while selling your home.

Here is a simple example. You bought your home for $300,000 and using a round figure of 10% it has dropped in value to $270,000. You have lost $30,000…ouch! Not really because if you are moving up in the market what used to be an $400,000 home is now worth $360,000.

If values had remained flat you would be going from a home valued at $300,000 up to a home worth $400,000. A difference of $100,000. In the present buyers market scenario the difference is $270,000 to $360,000 or a spread of $90,000 for the same home. If you are moving up you saved yourself $10,000.

What if you are moving down? Lets turn the example around. You owned an $300,000 home that is now worth $270,000. It is too large for your needs and has become expensive to heat, maintain and pay taxes on. You desire something more manageable. Well guess what the house that you planned on buying three years ago for $250,000 is now only going to cost you $225,000. So what has happened is you have lost $5,000 in buying power.

When a client asks our advice this is the kind of information we ask them to look at when considering what is the best move for them. You would run this same kind of analysis if you were going to relocate to another area where the values of homes could be a lot different.

The positive factor as of this writing is the historically low interest rates. This is a compelling reason to make a move now before they move back up at some point.

If you come to the conclusion that selling your home is the right move there are three very important keys to success you need to pay attention to in a challenging Real Estate market.

Pricing your home properly                                                                                                                 

This is the single most important thing you can do to ensure you achieve your goal in a timely fashion. Your Realtor should be going over in detail the most recent comparable properties that have sold. The sales date becomes extremely important when the market is still in a downward slope. Pay close attention to when the sale took place. A home that sold even a few months ago may not sell for the same amount of money today.  Also watch for seasonal changes and how they may affect the value of your home.

It is always best to use the most recent sales. When none are available a good Real Estate agent should be able to factor in an appropriate price adjustment based upon the difference in time when the comparable property sold.

Be careful to be realistic when you are looking at the data. Sellers are notorious for viewing their homes differently because of emotional attachment. Look at your home through the eyes of a buyer.

The fact that you used heavy duty nails on the deck you built is not going to bring you $5000 more than the neighbors similar home down the Street.

Picking a good Realtor                                                                                                                      

When the market was booming and all you had to do was put a sign in the yard and add the home to MLS, picking a good Realtor was less critical. Not so in today’s Real Estate environment where there are far few buyers in the market.  A good experienced Realtor is more important than it has been in years.  In 2005 and 2006, anyone could hang a sign in the yard and sell a property.  Not so today!

One of the critical components to picking a Realtor should be their ability to create a wide net to attract buyers. Over 85% of all buyers today find their home from an online search. You want an agent and broker that can give you a dominant online presence. Your home should be displayed on all the sites that garner the highest amount of Real Estate traffic.

Some of the better Realtors will be using blogging and video as a means of creating interest. Search engines love blogs because they are not “static”. A blog can be updated with fresh content daily if desired. Video not only enhances the presentation of your home but it can usually be found very easily online.

You should be looking for a Realtor that not only has a website but one that can be found in the search engines for terms specific to Real Estate in your market.

A good method of checking on the agents marketing skills is to “Google” their name. There should be pages and pages of results with an agent that knows how to market your home well online. If you don’t see much I would really start to question the agents ability to attract the most buyers.

The premise is this: If an agent does not know how to market themselves how could you possibly expect them to do a good job marketing your home?

Be careful of the agent who tries to “buy” your listing with an over inflated list price. What you will be stuck with is a Realtor with poor skills and a home that doesn’t have a prayer of selling. This is why the agents list price to sale price ratio becomes important. It should also be pointed out that the ratio should be from the original list price.

Make your home presentable 

Is staging your home with a staging company a must? I do not believe it is. Does it help you sell your home in a timely fashion? Absolutely! At the very minimum you should make sure your home is presentable. It should be neat and tidy. Having a clean and organized home that is visually appealing is important. There should be no ungodly smells present.

Getting rid of clutter and organizing closets are usually activities that will help generate a sale. Curb appeal is also important. Your yard and landscaping should be well maintained. Walk ways should be kept clear and your entry way should be spotless. 1st impressions go a long way in selling a home.

These are the basics. A professional staging company can really make your home stand out in a good way.

In the article top ten mistakes to avoid when selling your home there are seven other pitfalls to watch out for as well.

If you are considering selling your home and would like the consultation of experienced Realtors, contact Steve and Mary Doane of The Doane Realty Group by calling or texting 214-755-3378 or realeastate@doanerealtygourp.com