How to Sell Your Home in Today's Buyer Market, part 1 of 2
by John Occhi, Hemet Realtor
I first published this article in November 2006 on my original blog. It is rather lengthy , so I have decided to re-post it here as a 2 part article.
It should be pretty obvious to anyone who has any interest in the real estate market. You should know by now that the ‘sellers' market we had in Hemet during the first half of this decade has all but evaporated and transformed itself into a bona fide ‘buyers' market. What this means is that Hemet, like the rest of Southern California and most of the rest of the country has more homes for sale in the MLS than there are qualified buyers in the market looking for a home.
There are a couple of ways to determine that the market has shifted, if you have access to statistical data. If you know haw many days' homes are sitting on the market, this is a good indicator. An average of 60 days or more tip the scales in favor of buyers. If you look at the article I published earlier this month, I examined statistics for the market at the east end of Hemet, in zip code 92455 and found that the average home that was listed in the MLS in October 2006 was listed for sale for an average of 84.67 days - definitely a good sign for buyers!
Determining the available ‘inventory' is also very effective. Inventory is simply determining how many homes sold in a month into the number of available homes. Read my article, "Active, Sold & Expired A closer look for October, 2006 of the Hemet Real Estate Market" Last month, there were 40 sales in the 92544 zip code with 291 available homes for sale. Do the math and you'll figure out that November started with at 7.275 month supply of homes for sale. This will definitely put the buyer in the driver's seat.
Clean-Up: The First Step in Preparing for a Successful Hemet Home Sale
If you want to sell your home and you are serious, then you need to make your home model ready. I'm not talking about ‘testing' the market to see what might happen. Testing will only frustrate you and eat up valuable exposure time.
No, if you even think you are a serious seller, then commit to the process and that means work. Now is the time to do ALL of the deferred maintenance. That "honey-do" list we all have needs to get done now. Literally, the most profitable steps a Hemet seller can make is with a cleaning brush, a paint brush or a hammer.
Go ahead and modernize your home with stylish new light and plumbing fixtures. Don't be wasteful with your money, but if you need new flooring or wallpaper there is never a better time to install them. Don't go overboard with major renovations that you won't have the time to enjoy and your buyers may not appreciate - but do brings things up to date.
Perhaps the toughest obstacle I face with sellers is ‘de-junking' their homes. Yes, I know one mans junk is another mans treasure but now is not the time to show off your collections. I always say, if you are going to list your home, start packing. If you do not have adequate space in your garage to store packed boxes, then rent a self-storage unit, off your property. This will make moving so much easier and your home will look less cluttered and easier for the buyer to imagine taking possession of the space without all of your personal belongings.
One more comment on this theme - de-personalize your space. Eliminate religious artifacts, eliminate any ethnic pride and even family photos. Live without as much as you can. Remember, you are moving and this is no longer your ‘home', but the house you called home.
Team-Work: Who You Hire Can Make or Break Your Sale
There are a lot of Hemet Real Estate Agents who would love to list your home on the MLS and you have to pick the one that is best for you.
Do you want a discount broker? Maybe, if how much you spend is more important than how much you will net at the end of the sale. Remember, a discount broker can afford to list you home for a low commission because she wants her phone to ring with potential buyer clients. So, the longer her sign is in your yard, the more calls she stands on receiving. If she sold your home in a week, she would lose money.
Do you want a hybrid - mortgage/real estate agent? I don't know why. It may seem convenient to have one individual do the roll of several professionals. Is that what you want? Or do you want a professional handling each aspect of your real estate transaction - working in harmony with one another. Then I would select a Hemet Realtor who has a strong working relationship with a reputable lender to help pre-qualify your offers when they come in.
Do you want a Hemet Real Estate Agent who will promise you the highest price for your home? Only if you like to hear sweet little nothings in your ear as you are being raked across the coals. Don't ever listen to an agent who promises more than what your house is worth. Especially in today's market. You are being set up for a prompt price reduction. Guaranteed!
Do you want a Full Time Hemet Real Estate Agent? I hope so, unless you think you will get better exposure while your part time agent is passing out business cards while working at Sears, or whatever they still call their ‘day' job, that they have not yet been able to quit, for one reason or another. Work with an individual that has made a full time commitment to their chosen profession and not a part time wanna-be.
Are you really concerned with how much commission you will pay or how much you will walk away with at the end of the sale? If your thoughts lead you to believe that you can save money by working with an agent who will cut their commissions, chances are you are working with an agent that cannot successfully negotiate on their own behalf, so why would you rely on them to negotiate the sale of your most prized and valuable possession - your Hemet home for sale! You must realize that a 3% commissions is a 17% difference in earnings for a Realtor over a 2 ½% commission. Does it not make sense that more REALTORS would be motivated with a 3% or better commission than a 2 ½% or less commission? Yes, you may save a few dollars off of the line item of commissions paid out, but how much longer did it take you to receive a closing statement and for how much less than if it sold quickly when it was first listed.
Does your Hemet Real Estate Agent have a written documented marketing plan that holds him accountable? If not, you may be working with a magician for an agent - someone always ready to pull the next trick out of their sleeve to impress you when you need impressing. You will find that the professionals all have a plan they customize to your unique home and circumstances and then stick with the plan, holding them accountable for each step and each given task on a daily basis.
Does your Hemet Realtor offer any type or realistic guarantee? Will your Hemet real estate agent offer you an easy exit strategy from your listing, if you are not pleased for any reason? Will your Realtor offer to reduce their commission if they do not sell your home with in a specified time period - say 60 days in today's market?
Consider these questions and others you may have when selecting the right Realtor to sell your Hemet home.
In the next segment we'll take a look at 3rd party inspections, the asking price and how to negotiate concessions.
In the meantime, Have a Blessed Day,
John Occhi, Hemet Realtor
www.JohnOcchi.Com
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