Selling Your Home in 2008

No matter how much I rail against the thought, this year has been a different market than those we have been used to. Since that is simply a reality, we need to adjust our mindset so that we can still succeed in our goal to market our property. Believe it or not, homes are still selling in southwestern Pennsylvania markets; in fact, some areas haven’t detected any change. But due to overall circumstances, we still need to prepare ourselves and tailor our approach to this unfamiliar terrain.

In years past, it was difficult to make a mistake; most property sold and sold fairly rapidly. Pre-marketing preparation was necessary, but perhaps not to the degree we must attend to it today. As I am writing this, consumer confidence is at a low point as we watch the stock market cave in on itself. But as always, life goes on—people need to buy homes and others need to sell, and fortunately none of the lunacy we see all around us has affected your ability to manage a real estate transaction. Interest rates have NOT gone through the ceiling, mortgage funds have NOT dried up, home prices have NOT skyrocketed, nor have they plunged into a black hole. In fact, from the viewpoint of a normal, in fact fantastic real estate market, everything is in place but the perception. But since, as they say, perception is reality, let’s form a strategy.

First, let’s consider the most important aspect. No it isn’t location, location, location. As my daddy taught me, “Everything sells at the right price!” It is important that you are as competitive as you can possibly be. Your agent will do a comparative market analysis for you and will recommend a price. The numbers don’t lie—if your agent provides you with three or four homes in your neighborhood that have sold recently and are very similar in style, size and condition, that is probably the correct price for your home. In years past, it was okay to overprice a little so you could play the negotiation game. Today, that could create a serious delay in a successful outcome. Whenever possible, you should go visit your competition to gain insight—homes that folks who would be looking at your place would also see.

Remember that the buyer for your home is likely already in the market and actively working with an agent. Your best outcome is to have an offer quickly. Don’t be put off by this, concerned that a quick offer equals an under-market value. Your prospective buyer is out there looking for home with their agent, who has left a command with the multiple listing service (MLS) to be notified when a home like yours is placed in the system. Therefore, as soon as your home hits the MLS, these agents will be notified and you should receive a number of calls and request for showings.

Next, there is the matter of salability. Salability isn’t value, although it can help maximize your value. Salability includes such things as the home being neat and orderly, and even your décor, believe it or not. People cannot see past your clutter, are turned off by your dirt and are distracted by your pets. Salability is the reason home staging has become such important service today. Staging involves hiring professional decorators to consult with you concerning the appearance of your home. Staging may involve removing and rearranging furniture, removing clutter and redesigning space. With a vacant home, it may involve bringing furnishings in, in order to create an appealing environment. A staged home is hard to live in if you are interested in maintaining the effect. It means picking up your socks and doing the dishes, ouch!

The downside of staging is that you incur an additional expense. That’s not a criticism, just a fact. Staging could result in a quicker sale, which may equal sufficient savings to pay for the service. If you haven’t the available funds, understand the principles of what staging is expected to accomplish and try to duplicate it yourself. Painting, freshening up, picking up your junk, removing distractions and removing excess furniture makes the home feel more spacious. Be careful not to remove too much; then it just feels vacant.

Finally, make the home available! While open houses are a nonthreatening way for a buyer to see your property, I’m referring to the day-to-day availability. When a buyer or their agent wants to view your house, it is in your best interest to make it possible, especially if there are other homes this buyer is looking at that day. Now if you intend to be home 24/7, no problem. But if you want to go on with life while marketing your home, ask your agent for a lock box which will allow the buyer’s agent access to your house any time. Security is no longer much of an issue, as lock boxes are now electronic and your agent can know instantly who has been in your home via the lock box. It is an excellent tool and a great convenience for both you and the real estate community, and anything that makes this process easier increases your chances for a quick sale.

Gary Straub is an independent real estate consultant who has been a real estate professional for 36 years.