The 2017 spring housing market is officially underway and cranking with fervor. Since we work with home buyers all day, every day, we know what they’re looking for and what they want, and they’re prepared to make a strong offer for your house - if they think it’s worth it!
That’s great for you as a home seller, because that means you have the opportunity to put more money in your pocket. However, home buyers will try to drive a bargain unless you increase the perceived value of your home. The more valuable your house appears, the more money they’ll be willing to pay. Here are five tips to get you thousands $$$$ more:
Make the right upgrades with high returns. Everyone knows upgraded counters, new appliances, sharp backsplashes, and hard surface floors are desirable, BUT!! it’s very easy to spend more on upgrades than you’ll recover from the sale. I can’t tell you how many times I’ve walked into a home and seen $60,000+ in lovely upgrades, but the comps will only support $30,000 worth. Guess who takes the $30,000 loss on the chin?
So how do you avoid making that mistake? Get a free home valuation to discuss which upgrades would net the greatest return for you unique property and location. You might not need to do anything to the kitchen at all! Or, you might not need replace the cabinets, when simply sanding and painting the faces could create that upgraded look at a fraction of the cost. Unless the bathroom is super 70’s hideous, tearing out all of that tile might not make sense; it might be better to paint the vanity, replace the light fixture, and swap out the sink hardware for something more modern.
A real estate professional has seen tons of homes and knows what your competition looks like. They also know what condition the comparable houses in your neighborhood look like. We can help you identify which upgrades will multiply in value at the closing table.Staging. Staging is the art of making your home look professionally decorated, so that it appears more valuable. Simple, tasteful decor that’s lacking in clutter, knickknacks, extra furniture, toys, and excessive artwork can easily add 5-10% to the sales price. If your home would sell as-is for $280,000, that would be an extra $14,000-28,000 in your pocket. Let’s be conservative: what could you do with $15,000?
Staging also helps your home sell faster, because buyers aren’t blinded by all of your stuff that prevents them from seeing the bare walls and floors. If buyers can see the plain, empty space, then they can envision their stuff in the house, which allows them to start getting emotionally attached to it. People buy houses because they love them. Emotions sell. So putting your extra things in storage for a short while can help buyers fall in love with your house, which means it sells your house faster and you get to move on to the next chapter of your life sooner.
Staging is very affordable and stagers prefer to use your existing decor to create the desired image. If you’re missing a few key pieces, some stagers will lease them to you; others will encourage you to buy pieces (that you can often find very affordably in buy/sell/trade groups online). The goal is to create the right image at a low cost. We’ll connect you with the outstanding staging professionals on our team when you’re ready to sell your home.Professional photos. The photos on the Internet creates the first (and sometimes last) impression with thousands of potential buyers. Consider them as your “first showing.” Professional photos and a professional camera are essential -- no cell phones or pocket cameras! DO NOT accept anything less than the best photos to sell your home.
Professional photos showcase your house’s best qualities, brightness, unique floor plan, nice finishes, and the thoughtful work you put into staging. Professional photos raise the buyer’s expectations so they perceive your home as being as nice (or even better) than it actually is. Buyers become excited about seeing your house, which is the kind of emotion you want them to feel about it; it puts them in the mood to buy! Professional photos are an important part of successfully marketing your house, so don’t skip or skimp.Price it right. Everyone wants to get top dollar for their home, but overpricing it at the outset hurts your pocketbook in many ways. Some excellent prospective buyers will never see your listing at all because your house is listed higher than their search cut-off. Buyers are also smart; they’ve been looking at homes enough to know what an appropriate price should be. When they see your house overpriced, they see that you aren’t serious about selling and move on. Their impression of your house is now “overpriced” and as it sits on the market, they perceive it as stale. Many buyers won’t seriously reconsider, even if the house is what they’re looking for and later drops into their price range.
By contrast, pricing your house in line or even a smidge lower than comparable properties generates a TON of buyer interest, and sets you up to receive multiple offers. When buyers know they’re competing with other buyers, they act quickly and make their strongest offer straight out of the gate, often for over list price! And, Madison-area data shows that these houses sell in half the time than those that are priced over comparables.Hire a Master Negotiator. The agent who lists your home works for you, negotiating on your behalf. It’s very important they have excellent negotiation skills, as they can net you thousands more at offer time. If you don't hire a professional, don't expect any agent with a buyer to negotiate for you.
Real Estate Guy has been selling homes in Madison for over 24 years, has successfully navigated every sort of market expansion and adjustment, and is well respected by area Realtors. Combining the above tactics with his expert negotiation skills helped Guy’s clients receive accepted offers in a little more than half the time of all Madison-area homes on average in 2016! And, the homes he sold averaged 2.5% more of list price, as compared to all agents’ average. (at 98.5% vs 96%). That means significantly more money in your pocket with half the carrying costs and half the limbo waiting for that strong offer!
Although your neighbors’ home sales influence the price your house will sell for, there are many things you can do to increase your sales price by over 10%. By contrast, sellers who don’t do these things end up leaving money on the table, which means less money in their pocket. The Real Estate Guy team will walk you through the process to make sure you net the most money from your home’s sale!
What’s your home worth now? How much value could improvements bring you? Visit MadHomeValues.com for a free home valuation and consultation with Guy.
Let’s get your home sold this year!
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This article Written by Karin Hankwitz of RealEstateGuy team
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