Get Your Home Ready!

Ok, so you've debated for weeks and have finally decided that you want to sell your home. So, you contact you're favorite real estate agent and tell them to list your house. Unfortunately, the agent comes in, inspects your house then comes up with a laundry list of items that you need to do in order to sell your house. You're balloon is now deflated.

Many people don't realize the old adage that you only get one chance to make a first impression is so true when it comes to selling a house. Homebuyers, especially in today's market, are a selective group of people who are searching for the "perfect" house for them and their situation. It's not like buying a car where there are thousands of the same car out there. There are not two houses exactly alike in the world. There are some that look similar but because houses are attached to the ground, no other house has the exact same location, view or characteristics.

Thus, when a buyer comes by a house to see what it has to offer, they have to be able to see all that the house has to offer them that no other house can. I have often heard statements from sellers at listing appointments that they plan on doing something (clean carpets, paint a room, de-clutter the closets, clean the garage etc.) I say get it done ASAP because I have five days from the time we sign a contract to get this house on the market. Thus you have three days to get it done because on the fourth day I have to get pictures, get all my marketing material together and have it ready for the fifth day.

Now, as a seller all the things that should have been done and could have been done over the past few weeks has to be done in three days.

What happens if you don't get them done? Well, the house is starting to be advertised and a buyer comes to see it. Statistics tell us that the first few people who see a house are the most likely to buy it. If they cannot see this house for all it has to offer and it value then they walk away and see their next house. (As for value, the house also needs to be priced right, I'll save that for another post.) Not only that, but a house that is not in selling condition will not demand as high a price as one in selling condition. For example, if I had a house for sale and tried to sell it with carpet that looked dingy compared to one that had the carpets cleaned, I could sell the one with the cleaned carpets for litterally thousands more. Why? Because a house with dingy carpets tells a buyer that the seller was an unclean person, that the carpets will have to be replaced (though they may not) and to do so would cost them thousands of dollars plus the headache. Clean carpets also smell better and a clean smell always helps sell things at a higher price (think of buying a car with that new car smell compared to one that smells of some offensive odor)

In order to get top dollar for you home and to sell it quicker, begin to do some of those maintence items that you have been putting off. They may cost you a few hundred dollars now, but if you don't do them you will certainly be paying thousands later.

Here's a before and after of a house I have for sale. Which would you rather have?

Before and After Photos

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How Not To Negotiate

I've been reminded again today of one of the biggest mistakes that a buyer can make when offering to purchase a house. I'll give you an example. You see if you can figure out the mistake. Sam seller is selling his home that he's been in for several years now. He has it listed for $110,000. Bonnie buyer views the house and wants to make an offer on the house. They sit down with their agent and make an offer of $85,000 or $25,000 less than asking price. It's submitted and rejected with the instructions to bring your highest and best offer. The buyers now offer $95,000 and Seller Sam counters back at $100,000. Bonnie Buyer rejects and walks away.

Did you see it? Buyer's need to try and place themselves in the shoes of the sellers. By offering $25,000 less than the asking price the buyer's are, in essence, telling the seller's "you're stupid and I want to take advantage of that." Seller's are called sellers because they want to sell their homes but they also want to feel good about it. By offering so much less for the house the seller's are now defensive and unwilling to negotiate in good faith. They get rigid in their negotiations and thus the buyer's end up paying more than they would have had they just made a reasonable offer to begin the negotiations.

I don't know how many times I've seen a low offer like the example above and the seller's simple just dropped the price $1,000 or not at all. In the example had the seller's simply started closer to their offering price they could have been the one being firm they could have inched it up to their best and make the seller come down. Let's say the buyers offered 93,000 or $17,000 less than asking. Still a lot less but a little easier to work with. The sellers may not have rejected it but countered back at lets say 105,000 or $5,000 less than asking. The buyer's then could have countered back at 94,000 The sellers would have then noticed that buyers were getting close to their top and would have had to make some real decisions about what they wanted to do. They could have come down maybe to $100,000 or $102,000. Then the buyers could have come it at 95,000 and said that's top. This deal may not have worked but it would have put the buyer's in the driver's seat. It also would have possibly kept the seller's from getting on the defensive straight from the beginning.

The other aspect of this deal that buyer's need to be aware of is whether or not they should be looking at homes that are priced $20,000+ over what they are able and willing to pay for a house. If they are not willing to pay that much then they probably shouldn't be looking at them simply because if they fall in love with a property they won't be able to purchase it if the seller's are not willing to come down in price.

If you're thinking about buying a house, try and think about what it is that you really want and are willing to pay for a house. If it's not a reasonable price be prepared to not get that house of your dreams.

Seesmic Desktop

Dawn led me to a new program for my desktop that allows me to post to both my facebook page and twitter at the same time with one post. It's called Seesmic Desktop. It seems to work pretty good and it sames some time. I'm into that! If you get a chance try it.