Ready, Set, Sell

Just when you thought conditions couldn’t get better for home selling, another turn of events makes it even better. Thirty-year mortgage rates have dropped below 5 percent and are expected to remain there throughout the summer. This is great news for both real estate buyers and sellers!

With all of the economic turmoil and stagnation, how can this be? Well, it would appear that the economic mess in the European markets makes investment in the good old USA look like a pretty solid bet, so for the time being, we will be enjoying a new round of historically low interest rates. Low rates translate into a more affordable housing market and greater affordability equals more buyers and an improved market for home sellers.

Having filled you full of sunshine, I must now bring you back to planet earth. You are not the only person hoping to take advantage of these promising conditions. It may be wise to take a little time to sit down and map out a strategy for victory. Selling your home quickly with little trouble and for the optimum price is everyone’s goal, and the road to that goal is constructed primarily of pricing and presentation.

Let’s talk about price. I have often had clients who knowingly overpriced their home with the mistaken intent of assuring themselves of maximum return. The phrase, “You can always come down” is their mantra.

Seldom has so much damage been done in the name of logic. I mean, it does sound reasonable. “We’ll just try it at this price for a while and then reduce it if it doesn’t sell.” The problem with this reasoning is that the longer a home is on the market, the less likely you will be to get its maximum price. A very common question asked by prospective buyers is, “How long has this home been on the market?” Buyers believe that the answer to this question tells them something about the desperation level of the seller and the condition of the property, when in fact, it should only tell them something about the price.

As a home seller, you have competition, and if you have a $300,000 house, you are not going to get $350,000 just because it belongs to you. Your home will be used, intentionally or not, as a point of comparison for other properties. Other $350,000 homes will look better in relationship to yours and other $300,000 houses will seem to be a bargain when evaluated alongside yours. Your realtor has the skill, the tools and the experience to help you place a competitive price on your home, asking enough to help you get top dollar without pricing it so high that you languish on the market. If you went to your doctor and he diagnosed you with malaria, you wouldn’t say, “Thanks for your opinion, but I think it’s just a cold, give me an aspirin.” Taking the advice of experts is generally recommended.

So with pricing out of the way, what about presentation? If you have two similar homes for sale at the same price, the one which presents itself the best will sell first. Wouldn’t you prefer it to be your home? If so, then make an effort to prepare the property to sell.

A whole industry has grown up around the idea of staging. Whether you hire a professional stager, or simply follow the basic rules of staging, you should endeavor to stage the property. Have you ever gone into a model home? It’s like a breath of fresh air. Everything is in its place; it’s neat and uncluttered, and everything works together to enhance the property.

Conversely, take a look around your place. Your desk is piled with papers, your newspaper and magazines are strewn across the coffee table, cups and glasses are everywhere, your bed is unmade and there’s a heap of clothes in the middle of the floor. The kids’ toys are like an obstacle course in the family room, and the garage is so packed with debris that it resembles a waste management holding area more than a parking space.

The ultimate marketing presentation would be if you could make it seem as though no one lives in your house. That may be extreme, but at least do this—put away your stuff! Remove unnecessary furniture because too much furniture makes rooms look small.

Clean and dust, keep surfaces free of all but the necessities. Place settings around the dinner table and a floral centerpiece are a nice touch. Clean out your closets (they’ll look bigger), put your clothes away. In short, don’t distract your buyer—it would be a shame for them to miss your fabulous log burning fireplace because they were too busy trying to find a way to navigate through your living room.

A well-presented home impresses buyers and sells faster, and after all, isn’t that our goal?

Gary Straub has been a real estate professional since 1970 and is a member of the Northwood Realty management team.