Selling a home is so much easier when you get the basics correct from the
beginning. As a homeowner, there are only two factors within your control – price and
condition. All the rest, such as the availability of financing and market conditions, are
beyond your control so let’s discuss how you can best further your objective of a quick
sale.
Pricing a home is really quite a simple process. The most important factors, in
their order of importance are location, size, age and amenities. Therefore when an agent
starts to look for homes comparable to yours that have sold recently, they will search first
in your immediate neighborhood and only look further afield if they can’t find any good
“comps” (comparable sales). Then they will search for homes similar in size to yours and
should try to stay within 10% of the size of your home before also considering whether
the homes are of a similar age. Finally, they will compare the amenities in the two homes,
things such as an RV garage, workshop, swimming pool and outdoor features. Many
homeowners overestimate the value that amenities bring to a home but other than views
they only represent a small proportion of the total price. Most of the amenities were
installed for the homeowners’ personal pleasure and a subsequent buyer will probably
discount their value significantly.
When your agent has assembled this information, one way to use it is to
divide the sales price of the “comps” by the square footage and arrive at a price per
square foot. This is a crude measure but surprisingly effective and you should see a
pattern emerge if you have several good comparable sold properties. Finally, look at
competing properties for sale and price yours below them as it will then be the first to
sell!
Now let’stalk condition. You haveall heardthe saying “First impressions
are the most important”. This is especially true when you are bringing a house to market
and you should pay particular attention to preparing your home for the Realtor’s weekly
MLS Tour and for any showing appointments that result from it. Agents use the MLS
Tour to preview homes for current and future buyers and often make decisions about
which properties to show their buyers based on the impressions they come away with
from the Tour. Knowing this, what impression would they take away from your home? As
they drive up is the walkway swept free of leaves and debris, is the landscaping trimmed
back and the paint fresh or peeling? And as they enter the home does it look clean and
well-cared for, are the drapes open, the lights on, the fire lit and the bed made? In other
words, could they see themselves living there comfortably? Buying a home is an
emotional decision and you need to cater to that.
Havingsaidallthat,please don’trush outandspendafortunetryingto
upgrade your home when all you need is elbow grease. Studies have shown that only one
expenditure will bring you back more money than what you spend – paint! For every
dollar you spend on paint you will recover $1.07; everything else, such as new counter-
tops or remodeled bathrooms, is a loss and should only be done for your enjoyment, not
resale. Good luck and DONT break a leg!
Andrew Brearley is the manager of Coldwell Banker Residential Brokerage in
Sedona and has been practicing real estate here since 1981.
