This is the second article in the series, ‘Love Selling Your Home: Minimize Your Stress, Maximize Your Profit.’ It’s a step-by-step guide of the entire home-selling process — from finding a real estate agent to being prepared for your settlement day. Look for a new, informative article each week, right here!
You’re ready to sell your home, but how do you know if potential buyers will love it or not?
In real estate, we call it the “saleability” factor of a home. This comes into play when comparing your home to others that have recently sold in your neighborhood and how you should price your own home.
Before you list your home, we will consider some key factors when determining the listing price to ensure that your home is priced right to bring in buyers.
The condition and location of your home have the greatest impact on the price and the expected timeframe for selling. And if you’re a condo owner, you’ve got a whole other set of factors that can affect your unit’s saleability.
No one wants the home they’re selling to sit on the market for weeks or months, only to have no choice but to take it off. It becomes a tainted home, and this perception can snowball and scare away buyers who wonder, “What’s wrong with it?”
To avoid this scenario, we will carefully and honestly examine your home together to determine if it’s sellable in today’s market. And if not, decide what you’ll need to do to make it more attractive to buyers.
Keep the following key factors in mind as you appraise your own home. Some you can control and change, while others you cannot.
Condition
- A home that is not well-maintained or has outdated features is generally unappealing to many buyers today. They would rather pay for a more move-in-ready type of home. Look around your neighborhood and compare your home to others that have sold recently. If most homes have updated kitchens and bathrooms and features, yours does not, then your home is not on the same playing field when it comes to price. You’ll need to decide if you’re willing to sell “as is,” and the price will reflect that.
- See if your home has any unique features that are a plus and can push the price up when compared to others, or at least level the playing field. If yours has a finished basement and most don’t, then that’s a positive for your home. Do you have a large patio for outside entertaining? Did you install new windows throughout? Are there hidden hardwood floors under the wall-to-wall carpeting? Look for the positives!
- Some conditions extend far beyond outdated features and a lack of care; some homes may have severe water problems that need to be disclosed to buyers. The same applies if you face other more serious problems, such as termites, radon, mold, and foundation or structural issues. Even if you don’t, your agent will need to disclose these conditions. You may want to consider fixing them, or drop the price to reflect any repairs needed.
- Homes with awkward layouts, particularly in the kitchen, tend to deter buyers. How about your backyard, that is basically a hill, or the twenty steps up to your front door? Homeowners who’ve lived in a home for a while tend to get used to certain “negative” features that they didn’t even like when they first moved in. So, look at your home with fresh eyes and accept the reality of its features or layout.
Location
- Most sellers are aware that location, location, location can be a significant selling point. Certain neighborhoods are hot, while others are not as desirable. What’s yours right now? I can provide you with an idea of the current housing market in your particular neighborhood and where it is likely to head in the next few years.
- You can’t change the location of your home, so it’s a bigger challenge if you live near certain things that are unappealing to buyers. Are you too close to a school or a fire station? Do you live on a busy street or a busy corner lot? Is your home near power lines? What about a commercial district that is more industrial than hip? Your price will need to reflect these factors to get the buyers to view it.
- Look for some positives about your location that can be a significant advantage for your home and help offset any potential negatives it may have for buyers.
Do you live in a cul-de-sac or have a fantastic view? What about a well-regarded school district? A park or running/bike trail nearby?
- Are there any new developments or buildings being constructed in the area? If so, we will consider any impact, both positive and negative, it could have on your home. When will the construction end? Will there be more traffic? Will new stores and better amenities come into the neighborhood?
Timing
- The timing of your home’s listing can impact both the price and the time it takes to sell. Typically, springtime marks the peak of the selling season, with more interested buyers. However, that also means your home will face more competition from other listings. This is when you need to honestly know how your home stands up to the competition around it.
- Although there is less competition from other listings around the holidays and in the winter, most buyers take a break from their home-buying search at this time. Typically, homes listed from Thanksgiving to New Year’s often sit on the market longer and sell for less. Typically, the same house that is relisted during the spring market sells more quickly and for a higher price.
Next week, this series will cover more of the specifics of what you can do to make your home shine for buyers, including what projects are worth the time and money to help your home sell for more money.
Don’t worry, you don’t have to figure all this out on your own; I can help you know whether your home is sellable and how to make it so. Please be in touch with me a few months or more in advance of your move so we can ensure your home is ready when you are.
