KRXA Radio Show #255 - 6 Things Sellers Need to Know Before Listing

Since the market has shifted to more of a seller’s market we need to also shift our thinking when it comes to listing your house.  In a market where home inventory is low and demand is soaring, sellers may think that their home will move in mere minutes–and at a price that defies even the loftiest expectations. When left untethered, these dreams of big prices and warp speed sales can spell disaster–and major disappointment.  So, let’s take a look at a few important issues that need to be addressed before listing your home. 

1. Staging matters–big time! 

Every agent knows the old adage, “Homes that don’t show well don’t close well.” But still, time and time again we see sellers rail against the time and cost associated with staging a home. After all, if they love their home as it is, why shouldn’t everyone else?  This is a situation where sometimes showing trumps telling.  If you are particularly staging-averse, have your agent show you two homes; one where the home is staged and one where the home is not.  Your decor may be a beautiful expression of your personality, but sometimes less is more. You can also download and share Trulia’s 10 Hardcore Staging Tips for Sellers.

2. The market sets the price, not the owner.  

It’s understandable that many home sellers think that their home is above the price that the market dictates. Sentimental value often translates into an inflated sense of the home’s worth, but when it comes to price, the winning opinion is always the market’s opinion. We, as agents know it’s impossible to effectively price a home without taking into account the competition. Unfortunately, too many sellers don’t. 

First, it’s essential to determine how much you think your home is worth. I like to take my clients to comparable homes.  If your expectation is too high, it may be worth taking the time to see a home that is on the market and priced at your expectation. Then go to a comparable home that is priced similarly to where the market dictates the home should be priced. Take the time to both educate yourself on the competition and take a look at expert home pricing tips from your Realtor to understand pricing strategy. 

3. Small renovations may mean big bucks later 

In many cases, the cost of a home repair is less expensive than a potential buyer perceives the cost of the repair to be. If buyers over estimate the cost of fixing the problem, it may negatively impact the offer amount and end up costing you more in the long run. Be upfront with your Realtor when you know about potential issues that could cost you the deal. 

Before you list the property, take your agent’s counsel on the improvements that will make a difference when it comes to price. If you need a starter list of simple ways to boost a home’s value and its showing potential, download a guide on Trulia’s 10 ways to boost your home’s value or call me! 

4. Incentives can help close the deal faster. 

Offering practical incentives might not sound attractive, but those that fill legitimate buyer needs have the power to differentiate a listing from the competition and attract just the right attention needed to get the home sold for the right price. 

Talk to your Realtor early about how you might be prepared to sweeten the deal if the right offers don’t come rolling in. Talking incentives early and building them into the marketing plan can arm both agent and seller with the ammunition to jump potential marketing hurdles and beat out the competition for a fast sale.  If you need help deciding what incentives help sell homes just call me! 

5. Serious buyers never stop the hunt. 

Too many sellers see the winter months as the slow season. The reality is, there are plenty of upsides to listing and marketing a home when everyone else is taking a break, the number one reason being less inventory and therefore less competition. 

6. Real estate is a local business. 

The last few years have turned real estate headlines into high-profile news. Home prices are on the rise. In fact, last month home priceswere up 11.9% over the year past, nationally. While this is great news for the country as a whole, make sure you understand that real estate is a local industry and that asking price isn’t everything. 

831-236-4513

pattyre@comcast.net
www.pattyrosscarmel.com  

Monterey County stats:

TRENDS AT A GLANCE	JAN 2014		PREVIOUS MONTH	YEAR-OVER YEAR
Median Home Price	-7.5%	$405,000	$438,000	+19.1%	$340,000
Average Sales Price	-4.2%	$730,016	$762,208	+38.1%	$528,721
No. of Homes Sold	-19.6%	131	163	-33.5%	197
Pending Properties	+16.9%	304	260	-48.7%	593
Foreclosures Sold	0.0%	11	11	-66.7%	33
Short Sales Sold	-31.6%	13	19	-75.5%	53
Active Listings	+9.9%	523	476	+13.2%	462
Active Foreclosures	-16.7%	10	12	-61.5%	26
Active Short Sales	+21.4%	17	14	-39.3%	28
Sales Price vs. List Price	+0.3%	98.7%	98.4%	-0.2%	98.8%
Average Days on Market	-15.5%	59	70	-0.1%	59

24660 CABRILLO STREET, Carmel 93923
Class:	Single Family Residential	List Date:	02/07/2014
Beds:	3	List Price:	$1,688,000
Baths:	3 (3/0)	Sale Price:
SqFt:	2,306 (Assessor)	HOA Fee:
Lot Size:	6,300 Sqft (Assessor)	X-street:	Pico
Elem Dist:	Carmel Unified
High Dist:	Carmel Unified
List Office:	Sotheby's Int'l Realty-Rancho
Remarks:	Turn key Carmel Woods area home. Custom designed interior, luxurious upgrades and some ocean views. Set on a large oversized private & gated lot w/2 car garage. Ample storage, patios, possible 4th bedroom used as office. Rear yard features hot tub, fire pit and landscaping.

Patty Ross
831-236-4513
pattyre@comcast.net
www.pattyrosscarmel.com 

Click here to listen to Patty discuss the latest trends in Northern California Real Estate including the communities of Carmel, Carmel by the Sea, Carmel Valley, Marina, Monterey, Pacific Grove, Pebble Beach and Seaside