The decision to sell your home results from any number of reasons. The pursuit of career ambitions may require relocation, the empty nest as the teenagers approach college years or possibly downsizing as retirement becomes more and more in reach, are all likely motivations to sell your home. Yet, irrespective of "why" you decide to sell, the goal remains the same: to maximize value and yield the most economic return within the least amount of time.
Maximize Value
In the eyes of the "Buyer", that is where the value of your home ultimately lies. At the moment you have committed to selling your home, your "home" as you knew it, no longer exists. The hearty laughs shared in the backyard cookouts, the heartfelt prayers over holiday dinners and the hilarious, almost embarrassing, dance moves that were performed in the living room are fond memories that will forever remain near and dear in your heart. These experiences however, are not familiar and unrecognizable to the Buyer who is looking to purchase your home.
To this Buyer, your home is only a House. A House that is a product on the market and is being critiqued, alongside every other house in the neighborhood. This evaluation will be with much scrutiny to assess what practical value this purchase may bring to the Buyer. Practical value primarily resonates in price, location, number of bedrooms, availability, curb appeal and condition of the house. Some of which you will have no control, yet it may be a very worthwhile investment to improve the areas of your home where you are available to do so. This may be nothing more than just cleaning up, applying a fresh coat of paint or cutting the grass. Unfortunately, we can not increase the value of your home by advertising all the fond memories. We can however assuredly increase value by presenting your house as the most favorable in the neighborhood.
Most Return
A common question within economic discipline is, "What the market will bear"? This cliché expounds on the notion that it is Buyers who determine what a product, your house in this instance, is worth. Here Buyers will reach a saturation point and will not spend a dollar more. Having an understanding of market conditions and the variables within, will serve paramount in getting your house ready for to sell.
The correlation of Supply and Demand confirms whether market conditions are favorable to sellers, a Sellers Market or more favorable to buyers, a Buyers Market. In a simple analogy, we understand from our Economics class that when demand (buyers looking to purchase) is low is relation to high supply (houses available for sale), prices tend to steadily decrease until that equilibrium (balance) is reached. Conversely, when demand is high in relation to low supply, prices tend to steadily increase until that equilibrium is reached. The ebb and flow of market fluctuations present different opportunities respective to each market. Thereby, employing the most effective strategy consistent with the current market conditions will afford your Most Return.
Least Amount of Time
Patience may very well be a virtue. Yeah, but not when your house is on the market. How about, "time is of the essence"? This is a far more driving motivator when selling your house. The day your house is listed For Sale, the clock immediately starts to ticking and is timed by Days on Market (DOM). Within the first 30-days your house is listed for sale, it will garner its greatest number of interested Buyers. After 30-days, "uh-oh", Houston there may be a problem. It is at this threshold, where your house will begin to loose its "new-house" smell and Buyers will typically begin to overlook your house in search of a newer, more shinier active listing.
The primary objective of your Sales and Marketing Plan is to attract the greatest number of potential Buyers to visit your property within the first week it is listed for sale. The more Buyers who reserve a showing appointment and visit your house, the greater probability you will receive an offer. And with each week thereafter, the likelihood of receiving a favorable offer is less likely. In this instance, new strategies may have to be implemented to garner new interest. Such as, wait for it, lowering the price (not a good thing).
Therefore pricing your house right at the onset is essential. In fact, pricing is a marketing strategy within itself and may very well be regarded as the most significant. With all the work that goes into preparing your house For Sale, the list price is the most widely used search criteria. If Buyers believe your house is too pricy, they won't bother to request a showing and will not have a chance to see all the work that went into your house. Price your house to effectively attract Buyers and you would have significantly increased the opportunities to receive an offer within the least amount of time.
Sold
The inevitable Sold sign placed in your front yard will in many facets reflect a transition in life. Its incumbent that you approach this effort with a healthy psychology and that your strategy is deliberate, actionable and relative to current market conditions. Ultimately you will be rewarded by achieving the initial goal of "why" you decided to sell. Just one more thing, don't forget to stop by the Post Office and complete a Change of Address form.
