Selling or buying a home is probably the biggest financial project you ever do in your life. But it is also an emotional investment… Here are unique & little known tips from experts to make 10% + or more, without spending a fortune.
Hint: So you can visit some of these exceptional Hotels With Unique Concepts That Invite You To Dream
Prepare your property
The buyers will buy your property on a crush. If the buyer, during the first visit, falls in love with it, there is a good chance that he will buy it. At least, if the property is at the right market price.
Take the time to look around your property and look at it through the eyes of a potential buyer. Make a list of what depreciates it.
Important Tip: We strongly suggest you ask a friend or neighbour for help. Carry out the necessary work and repairs before putting it up for sale.
You can also ask a certified real estate expert to come and do the appraisals before you even start marketing the property.
Don’t forget to Control electricity consumption (Heating…).
Ask too much, and you’ll not receive enough
On average, a property remains on the market for 75 days (or more depending on your state). If your starting price is not in line with the market, you risk not selling it. You even risk losing money by selling for less than the fair market price.
The longer a property lingers on the market, the more difference there is between the asking price and the selling price.
Some real estate agent numbers may open your eyes!
For instance, if the property has been on the market for 4 to 12 weeks, it sells, on average, 5% less than the asking price. If it has been on sale for 13 to 24 weeks, the selling price, on average, is 8% lower than the asking price.
If it is on sale for more than 24 weeks, the owner can expect to receive, at most, 90% of the asking price!
What’s are the risks of overestimation?
* Decrease in the number of potential buyers as the product is marketed
* Longer and more expensive marketing
* You will have Lower bids
* Reduction in net earnings
* Problem of « Reputation » (wear and tear of the property)
* Obtaining Financing will be more complicated for the buyer
* Increased expertise problems if the property is empty (degradation)
* Many inconveniences & frustrations without result
This raises an important question.
So what is the real value of your property?
First and foremost, the value of your property is determined by the current market, and the other properties for sale at the time you sell.
It is also determined by the buyer’s perception of the condition and attractiveness of your property, the general economic conditions of the area, the price that buyers will pay for a similar property, its location and the financing options available.
Warning! Under no circumstances does the value of your property depend on what you have invested, or what you need or want. It does not depend on an estimate from a financial institution, an insurance expertise, or the selling price of your neighbour’s house, its insured value.
Hard to swallow, but the value of your property does not depend on the cost of the house you want to buy.
The mistake people usually make!
The private individual very (too) often overestimates his property, because he don’t have access to the prices of transactions carried out in the sector. In addition, most sellers seek to acquire a new property themselves, better placed, more recent, often larger and therefore more expensive.
Inform yourself and do your homework.
Focus on simple mandates
« Too many agencies kill the agency. » You are used to competing with banks, insurers or contractors, you are right. On the other hand, using several Real estate agencies to sell your property is not always effective.
Of course, you will reach a larger number of potential buyers, but potential buyers might think that the property, visible in several listing, has difficulty selling.
« Another unfortunate consequence is that the agencies will probably not make the maximum efforts to advise you properly. Why? because they know that at any time one or the other can carry out the transaction, » John Wilson, Real estate agent from Los Angeles.
So? Prefer exclusive mandate, homes are sold faster that way, usually less than three months, compared to more than twice as many with a single mandate.
John Wilson continues : « If you receive an offer that is less than the value of the property, an agency, with a simple mandate, will be tempted to make you accept it so as not to risk losing the business. On the other hand, with an exclusive mandate, the agency will take the time to study the offer with you, even if it means advising you to refuse it »
Ask the right questions to negotiate better
Faced with a salesperson or seller, you have the opportunity to ask some useful questions that will help you understand your negotiating margin:
*Did you put this property also in an agency?
An affirmative answer indicates that he is a real seller who really intends to sell his property.
By The Way, Be aware! As a general rule when the seller tries to sell by himself, he puts the price without the agency commissions.
*Have you been the owner of this property for a long time?
Depending on the date, you can know at what price he could have bought. You can guess that part of his credit is being repaid and that he no longer owes much money to the bank.
*Why are you selling?
Discovering the customer and listening carefully allows you to learn a lot about the motivations.
*How long has the house been on sale?
A property presented for sale too expensive, disconnected from market prices will logically remain years without finding a buyer.
Alternatively, a property at market price will be sold within 2 months. A property below the market price can be sold within a week.
*Have you ever had any price offers for your property?
Too many price offers indicate that the price is too high, but that the property is interesting.
An absence of an offer indicates a disconnected price and/or a property with no market value.
Like in mariages, asking the right questions get you the right answers!
Create a good atmosphere
To do this, we will use the principles of « Home Staging », i. e. storage, depersonalization, harmonization and renovation.
The principle is to please and face all the possible negative arguments of a future buyer, and at the same time limiting expenses to a minimum. During a visit a potential buyer makes up his mind within the first 90 seconds. It is therefore important that as soon as they enter the house, the buyer feels good and at home.
The atmosphere during the visit is important. So, to create a special atmosphere, use all the senses.
You can create a nice atmosphere with smells for example. A pretty bouquet of flowers at the entrance, or scented candles are helpful. Because in addition to releasing nice smells, they promote a fashionable Zen atmosphere. More on enhancing your bedroom atmosphere for great sleep every night here.
If you have a fireplace, don’t forget to burn a few logs in it, it’s always something people like.
One more thing: Take special care of the photos!
Stage your house, retouch the photos if necessary by adding contrast and brightness.
You might even consider hiring a professional photographer. , or photography being one of the common hobbies,
Check if have a photo enthusiast in your friends.
It is worth it!
Double check the future costs
If you plan any building, decorating, adding a swimming pool to the property … avoid all unpleasant surprises and call in a professional!
It is possible that the owner or real estate agent will minimize the cost and the time.
After all, the real estate agent and the owner want to sell, they may not be very objective.
In addition, they do not know exactly what you want to do in your future home.
Sometimes there may also be things you haven’t thought about, or hidden defects.
The advice of a professional, therefore, seems to me judicious.
The Wrong season
The ideal time to sell is spring. So, focus on the second or third quarter, when the market is most active, to hopefully get a better price. Most families with children want to change their accommodation during the summer school holidays.
This is in order to move before September and prepare the start of the school year in the best conditions. For waterfront homes, the ideal time is between March and September.
If you miss the boat, don’t delay too long after. « No more than three months in the case of a liquid market and six months for an illiquid market, » says Donald Harris, Realtor from San Diego. It is rarely good to stay in the market for too long.
When visiting a property, arrive early…
Arriving a little early will allow you to take a tour of the area and familiarize yourself with the architecture, shops, transport and possible nuisances.
You will also be able to see if parking spaces are easily available around the property.
All this will allow you to make your own feelings about the environment.
Hint: Visit all the common areas
If you visit an apartment, remember to look carefully at the state of use and the cleanliness of the access corridor.
This will give you the first information on the holding of the co-ownership by the syndic, which is a significant criterion in the purchase of a property.
As a general rule, a well-maintained stairwell can indicate that the rest of the condominium owners will be well maintained….