This coming Tuesday (5/29) I'll be meeting with a relator to discuss putting my house on the market. My last Sunday here in Indy is June 24th, and my wife and I will be moving soon after that.
This is the first house I've ever owned (since Sept. '06), thus it will be the first time I am ever selling one.
A pretty opened ended question, but any advice you would share? Things to be aware of? Thanks in advance for your comments!
Do independent research on market values in your neighborhood. Has anything in the area similar to your house recently sold? Real Estate tax and sales records are public. Florida and Tennessee both have the info online, maybe your state does too.
Know the value of your home. Be patient. Be pragmatic.
Remeber that the realtor does not get a commission unless your home sells. After a while, they may start pressuring you to lower your price. Respond to market trends and your desires/timelines, not the realtors. One thing they will talk to you about is staging your home. Pay attention and do as much of that as you can.
Did I mention, be patient.
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Regarding staging -- take as many personalized items out of the home as possible. Family pictures, collections, etc. Make the house look as close to a model home as possible (in other words, like no one lives there!!!). Keep the furniture there and keep it as tidy as possible during the times you're going to be showing it.
Also, bring it to "neutral" as much as you can. For example, that bright lime green wall you have in the dining room? Tone it down by painting the room a taupe color.......
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A GREAT source for info is www.zillow.com. At that site you may be able to find other homes that have been recently sold in your neighborhood - to find what's the going price, etc.
We used Zillow very effectively one year ago NOW...and we are thankful.
Good luck - but be warned - it's a buyers market - and even after you receive an offer the key issue after that is IF the prospective buyers need a mortgage, there will be a bank or loaning institution appraisal.
And that can be a real kick in the slats...speaking again from experience.
Secondly, even though Dana gave you some advice re: pictures on the walls, etc., ASK your realtor. We left everything in place..and it worked for us.
Thankfully.
-neb
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All good advice, especially on the staging. First impressions are very important. Not that we try to hide things, but I have learned over the years that a bad paint job or landscaping generally causes prospective customers to dig deeper as they look for flaws. As it says in Proverbs "A decent paint job turneth away wrath."
Another thing I have found to be very important is to resist the urge to overprice. While it is true that folks are free to make a lower offer, and it's also true that you won't get an offer above the asking price. The problem is that folks will generally not look at an overpriced house. Generally the listing services will also reveal how many days on the market and when price reductions were entered in. A home with many days on the market and a price reduction or two is like blood to a shark, I watch listing carefully for these two signs, those are the ones I can steal.
-Jim
To know and to serve God, of course, is why we're here, a clear truth, that, like the nose on your face, is near at hand and easily discernible but can make you dizzy if you try to focus on it hard. But a little faith will see you through.
Garrison KeillorPost Thanks / Like - 2 Thanks, 0 Laughing
I think it depends on the market. We bid over the asking price on a home that was way underpriced and got outbid by almost 10%. The sellers created a bidding war by underpricing the house and likely got more than they would have were the house properly priced for the market.Originally Posted by Jim Chabot
At the same time, the house we ended up buying had been on the market 400 days because the sellers had greatly over-valued the home. We paid a fair price for it, but it was 20% less than the original asking price.
I will say, the best real estate move we made was calling David Parker before we started the process. He gave sound advice and set us up with a plan to find a great local agent.
...just my $.02.Post Thanks / Like - 3 Thanks, 0 Laughing
<putting on my Realtor hat>
David, all real estate markets are local. The market in your city will often vary greatly from the market anywhere else, especially in another state. Listen to your local experts, not national voices or advice from other areas. In our area, (Fresno, CA) we are at a multi-year low in inventory. We currently are at about 1100 available homes and the usual inventory here in a balanced market is ~3500 homes. So in this market we have a seller's market. Multiple offers are common and homes frequently sell for over asking price. Homes also frequently fail to appraise at the contract price which often becomes a problem. Also, the impact of REO and Short Sale listings effect pricing and market dynamics. But your local market could be entirely different. You will be well served by a good local agent with expertise and experience. Listen to your hired expert and let them do their job.
I'll also add not to feel pressured to sign with the first agent you interview to list your home. If you want more detailed help in picking a good listing agent, feel free to give me a call. 559-490-1989.
Last edited by David Parker; May 25th, 2012 at 01:47 PM.
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"Though we cannot think alike, may we not love alike? May we not be of one heart, though we are not of one opinion? Without all doubt, we may." ~ John WesleyPost Thanks / Like - 2 Thanks, 0 Laughing
David. I am confused. I would have thought what you have described would be a sellers market, due to low inventory.
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Get an appraisal (~$400) from an appraiser used by your local banks.
They'll require such an appraisal before lending to the buyer, so you may as well know what "their" appraiser will report.
Post Thanks / Like - 1 Thanks, 0 LaughingDiane Likens - "thanks" for this post
Hehe...good catch. My fingers were faster than my brain. That's what I get for posting before 7:00 AM...
The problem is that the buyer's lender will not accept an appraisal ordered by the seller. They aren't allowed to. The entire appraisal process has been completely changed in the last couple of years in the name of 'financial reform'. The buyer's lender must use an appraiser 'on rotation' through an Appraisal Management Company. A lot of the things we used to do aren't allowed now.
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"Though we cannot think alike, may we not love alike? May we not be of one heart, though we are not of one opinion? Without all doubt, we may." ~ John WesleyPost Thanks / Like - 4 Thanks, 0 Laughing
No doubt. But I wonder if Gene is suggesting getting an appraisal in order to get a good feel for what is ahead, rather than for mortgage purposes. I've done this a couple of times on a couple of high priced homes 800K+ just to make sure that I didn't overprice them. It was also a good tool to use on the buyers agent during the offer phase.
For most homes I wouldn't bother with a pre sale appraisal. Comparable values on recent sales should be easy to find and they will tell the tale of where the appraisal will come in. Yes?
-Jim
To know and to serve God, of course, is why we're here, a clear truth, that, like the nose on your face, is near at hand and easily discernible but can make you dizzy if you try to focus on it hard. But a little faith will see you through.
Garrison Keillor
Best advice I can give as a layman is this, get rid of clutter... all of it. Rent a storage building if you have to, but get rid of any and all clutter. Kids toys, extra furniture, decorations, etc. You want your house to look open and spacious and clutter kills that. Don't shove the clutter in boxes in the garage or the shed in the back yard... get it off the property. Clutter kills home sales. Especially in the kitchen... get those counters and the refrigerator cleared off.
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We had to order the appraisal on the home we just purchased, but the buyer ended up covering it in the closing costs. At least I think they did. I signed so many things I'm really not sure. I just know I haven't paid for one yet.
Yes. Though frankly, any agent worth his pay should be able to provide a market value and be able to "show his work". Agents have access to the same resources as appraisers. The most important resource is the MLS Sold data. Tax records only tell price and financing. You need pictures, features, and seller paid concessions to really know how to interpret the sales data. Square footage and such just isn't enough. If I had to pay an appraiser to know my market value, I'd fire my Realtor.
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"Though we cannot think alike, may we not love alike? May we not be of one heart, though we are not of one opinion? Without all doubt, we may." ~ John WesleyPost Thanks / Like - 2 Thanks, 0 Laughing
bake bread or put drops of vanilla on the lightbulbs (incandescent ones only) before showings.
Dust chandeliers or other spots that you wouldn't normally dust.
Check the landscaping leading up to the entrances (especially the front one). Annual flowers (impatiens, marigolds, etc ) are cheap. Freshen up the mulch.
Replacing old kitchen or bathroom floors, painting walls can be very inexpensive and effective. Know the important mechanical problems with the house and be prepared to make concessions on them.
Others have mentioned clutter, but be sure to look for objects (especially pictures) that might cause people to have to watch their head.
Make sure that permanent things that you want to take with you are already removed before you list. Most things like light fixtures are assumed to be permanent.
As far as the appraisal goes, it seemed a bit too convenient that our appraisal came back at exactly the amount we were paying for the house. If you've got the time, it would be interesting to know how a different appraiser values the home.
...just my $.02.Post Thanks / Like - 1 Thanks, 0 Laughing
True. But for the cost of the appraisal at the start, you'll have a credible way of setting the price.
Most every appraisal that I've seen comes in right on the dime. There is no sense for the appraiser to stick his or her neck out for a higher appraisal, when it's a go, no go, proposition. Plus it's easier to shoot for a benchmark, take not of the target, round up comps that will support the target price and your done, so sense working harder than is needed.
At least that's my take on the process. Both of the anticipatory appraisals I had done brought questions of what number I was hoping to come in at.
-Jim
To know and to serve God, of course, is why we're here, a clear truth, that, like the nose on your face, is near at hand and easily discernible but can make you dizzy if you try to focus on it hard. But a little faith will see you through.
Garrison Keillor
Agreed, the two houses that I had appraisals done on were out of my realtors and my comfortable price range experience. And I really like my Realtor, so I thought that getting a third opinion would be helpful to both of us. On normal priced homes, I don't need the realtor to tell me the price, but your right he knows full well how and where to price things.Yes. Though frankly, any agent worth his pay should be able to provide a market value and be able to "show his work". Agents have access to the same resources as appraisers. The most important resource is the MLS Sold data. Tax records only tell price and financing. You need pictures, features, and seller paid concessions to really know how to interpret the sales data. Square footage and such just isn't enough. If I had to pay an appraiser to know my market value, I'd fire my Realtor.
You are right about the "boots on the ground" information that is crucial. I can't count how many times a buyer has brought forward a much lower priced "comp" and I've responded with information as to why that particular house was cheaper, "next to a landfill", "under power lines", "water in the basement", "interior trashed", and on and on, there is always a reason.
-Jim
To know and to serve God, of course, is why we're here, a clear truth, that, like the nose on your face, is near at hand and easily discernible but can make you dizzy if you try to focus on it hard. But a little faith will see you through.
Garrison KeillorPost Thanks / Like - 1 Thanks, 0 Laughing
Since we had the good fortune and answer to prayer!! of selling our home of 19+ years in 2011, I feel perhaps maybe I should add a few things.
We’d been searching for a smaller place - a condo - it was time for us to cut back, not have the outside chores to be concerned about, etc., for more than two years. We both felt the local realtor fee of 6% was a bit steep.
But to get a true indication of what our place was worth I called one of the local real estate offices and made an appointment with one of their most successful agents. Why hire/pay an agent who’s a rookie, etc. We wanted someone who would had listed/shown/sold similar homes in our area.
She arrived and gave us some very good advice. Some things really needed to be done, which we frankly had not noticed, or were not that important to us. But to a prospective buyer, they might be of concern.
Of course, she wanted us to sign on the dotted line that same day for a six-month listing. Further, she said she could not budge off the going commission - it was simply the company policy.
We asked about removing personal items, pictures on the wall, etc. She said no. Leave them. Which we did.
We tried our best, doing everything we knew to do, without success..including ads in the local paper multiple times, open houses, etc. Nothing.
Then we heard about Zillow...and looked into it. I do not recall the exact rate but I was able to list our home there for the amount the realtor had suggested as a listing price, gave room dimensions, taxes, and included many pictures, inside and out. (see attached)
In May 2011 on a Friday evening we received a call from a local realtor - not the same as above. A young couple had seen our home on Zillow - was already pre-approved, it was in their price range, they liked what they saw, and she wanted to know if she could show it. And because we were not listed with her (nor anyone - sale by owner) the fee would be 3%.
Saturday morning they visited, they stayed, and stayed, and stayed even longer - (we were not at home) - and made us an offer.
40 days and 40 nights later we moved.
Thank the LORD.
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