So You're Thinking About Selling Your Home!
Provided by Rick Burfoot
of RE/MAX Little Oak Realty, 33119 First Avenue, Mission, B.C. V2V 1G5
Contact: Ph.(604)820-0555 or 1-800-820-7577 Fx.(604)820-0150
See Rick's Home Page at www.rickburfoot.com
Chances are your home is the biggest investment you will make in your life. Maximizing the amount of equity you take out of it when you sell is critical. Choosing a Realtor is one of the most important decisions you will make when you put your home up for sale. The times are gone when a Realtor would just put a sign on the lawn and wait for the offers to come in. In this day and age price and exposure are paramount. Buyers are savvy, having access to to the market at their finger tips through the Internet. It is more important than ever to hire a Realtor who is at the forefront of technology and has an excellent grasp of the market. Your Realtor is there to advise you on pricing your home to sell, and getting the necessary market exposure to bring the maximum number of buyers in the shortest period of time. When an offer does come in, your Realtor is there to negotiate on your behalf to get you the highest price possible and the best terms.
You should take advantage of the experience Rick Burfoot has in the market place to get your home sold for the most money, in the shortest amount of time, with the least amount of hassles. Rick has the proven marketing plans and systems to get top dollar for your home. When you decide to sell your home with Rick Burfoot, Get Ready to Move !!!
Why Rick Burfoot Is Above the Crowd
Pricing Your Home:
I am regularly in and out of many many homes, and have superior market knowledge. I am able to advise you how to price your home so that it will sell before the competition.
How To Showcase Your Home:
I will go though your home and give you information on things you can do to maximize your homeís attractiveness to potential buyers.
You will hear from me as often or as little as you like. Whether it be daily follow-up on the phone or weekly by mail. My goal is to be as responsive to my clients as they would like me to be.
I will be following a detailed marketing plan to get your property sold. This plan, tailored to suit your home or investment property, will include:
Weekly Advertising until your property is sold.
An Internet Tour of your property on my Website
An MLS tour of your home to other realtors.
Customized mailout/flyer of your home to the general area
I have access to legal and mortgage and accounting advice. If you have a legal or mortgage question pertaining to the purchase or sale of your home, I can direct you to experts in each field.
Superior Negotiation Skills:
Since starting in the Real Estate business in 1981, I have negotiated countless offers and contracts and will use my resources, experience and abilities to get you the best price and most convenient dates.
Marketing Expenses and Net Proceeds
At RE/MAX North Fraser, I charge 7% on the first $100,000 and 2.5% on the balance and I offer 46.5% of this commission to another agent who brings in a Buyer.
Did you know that our commission rates are some of the lowest in North America? Agents in Toronto and California customarily charge 6% of the overall sale price!
Always remember that you have to pay GST on Real Estate Commission.
Your other costs will include, legal fees and any penalty you may have to pay on your Mortgage, Check with your Bank.
PRICING YOUR HOME CORRECTLY
So, what is your home worth?
Appraisal is not an exact science. There is not one exact price for any piece of property. Different buyers put different values on the same property. Price also depends on terms.
" Price and terms are everything" is a popular adage.
Your home is worth what a buyer is willing to pay. The only opinion of price that counts is that of a buyerís. Your real estate agentís opinion of value doesnít count . The agent is not buying the property. Your opinion about price doesnít count. You are selling, not buying. Only a buyerís opinion counts.
If this statement seems harsh, consider this. You could pay 100 appraisers to appraise your home- 100 professionals who went to school for years to become appraisers and who appraise every day . All these appraisers will use the same market data and information. And, if asked to give one price only instead of a price range they could give you as many as 100 different values with a large spread from low to high!
How could this be? Doesnít a piece of property have one value only? Consider that appraisers are human too. Appraisers who appreciate your home and your decoration will value your home higher, just as a buyer who appreciates your home more is willing to pay more. Not all appraisers interpret the same data the same way, just as not all buyers interpret the same data the same way.
You value your own home higher than anyone else. After all, when you bought this home, you selected it as the one home that you liked best. You not only bought the home you liked the most, over the years you customized your home to further suit your tastes.
Who appreciates your home more than you ? Nobody. But donít let your opinion of the value of your home interfere with your ability to determine what price a buyer might be willing to pay. Listen to the market. Listen to the buyers.
Putting A Value On Your Home
You do not need to pay for a professional appraisal, as I will prepare a complete Comparative Market Analysis containing all the information you need to make a good pricing decision. But keep in mind that a Comparative Market Analysis is just a guideline; it doesnít allow you to determine an exact value for your home.
Comparative Market Analysis theory assumes a buyer who paid a price for one property would logically add and subtract for the differences in a second property. This theory also assumes the values added or subtracted would be the same for all buyers. However that isnít always the case.
Consider this example: Two absolutely identical homes sit side by side. The owner of one spends $5000 to build a new detached garage. You might reasonably assume that every potential buyer would value that home $5000 higher. But, what if the buyer didnít own a car? Would the garage have any value at all? On the other hand, would the owner of a new car even consider buying the home without the garage? If a builder saw it, would he add the $5000 price the owner paid or the $2000 it would cost him to build?
Your home is worth different values to different buyers.
Recent Sales of Homes
Comparative Market Analysis gives us indicators of value. Recent sales represent the true market value and are your best evidence on which to base your pricing decision. The prices at which homes similar to yours have sold indicate what buyers are willing to pay for your kind of home, in your area, at this time. Pay close attention to these sales. They are valuable indicators to both you and your potential buyers of what the anticipated sales price should be.
Take a couple of minutes to look a these sales the way a potential buyer for your home will look at them. The buyer for your home will look at this identical information to determine the value they will place on an home when making an offer. A buyer looks for every reason your home might have a lower value. Sellers often look only for reasons their home might be worth more.
Try the buyerís perspective for a minute or two . Itís probably be the most valuable perspective.
Current Listings-Your Competition
Try to look at your competition like your buyers will. You may not like the green carpet in the home down the block, but that may not make your home worth more to a buyer.
One must also examine the number of days a home has been on the market; if it has been more than the average market time for similar homes, the house usually is over priced.
Use the prices your competition are asking , along with your anticipated sales price, to set a realistic asking price. When your home appears to be more competitively priced, buyers will naturally give your home more attention.
Homes That Did not Sell
These homes have been on the market a long time or have expired and gone off the market without selling. These are examples of prices that buyers are not willing to pay for your type of home, in your area at this time. These prices are too high, this is valuable information to consider when determining your asking price.
Consider the following statement before setting your initial asking price .
" Sellers who price their home fairly from the beginning often receive a higher price and a faster sale"
Why? Newly listed properties attract the most buyer attention. Prospective buyers who canít find a suitable home currently on the market, screen each new listing looking for their dream home. Your home will never receive more attention than it will in the first weeks of listing.
That initial interest can be wasted if buyers are first exposed to an unrealistic price. It is a fact that homes that languish on the market because the seller started with a high price with the intent of coming down are difficult to sell. Why? When a home is relatively new to the market, buyers tend to think many people may want this house. When a buyer finds a good match for their needs, they feel they have to act quickly, before someone else does. They hurry to make an offer and negotiate enthusiastically before someone else discovers "their" home.
Buyers always want to know how long a home has been on the market. If a home has been on the market for several weeks or longer, buyers know that other buyers have rejected the home. Why did they reject the home? is there something wrong with the house? The neighborhood? The price?
Buyers tend to take more time before making an offer and tend to be less enthusiastic when a home has been on the market for more than a couple of weeks. Make every effort to set the price initially. Take the time required to set a realistic price at the time oflisting.
Some sellers worry that if their home sells quickly, they might have priced too low. When you take the time to study the information contained in the Comparative Market Analysis you can do a lot to overcome this common fear. Here are two ways: price your home unrealistically high and gradually bring it down until it finally sells, or study the information given to you and set an initial asking price that you know is in line with similar homes that have recently sold.
If it becomes apparent that you have priced your home too high, do not hesitate to reduce the price.
The best marketing program cannot overcome an unrealistic asking price.
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