While your REALTOR® will handle the details and legwork of the home selling process, you may find it helpful to review the Six Critical Factors of a Sale.  Arming yourself with some basic real estate knowledge will be helpful as you move through the selling process.

1. Determining the List Price

Before you set an asking price (or list price) for your home, your REALTOR® should complete a Market Analysis.  Your REALTOR® should be experienced to determine the most appropriate sales price for your home by working with you in evaluating several factors.  When setting a realistic fair market value of your home, you’ll want to consider the following:

  • Don’t base your asking price simply on what you paid for the home.  You may be asking too little or too much.
  • Determine how much time you have in which to sell your home.  If you must sell quickly, your REALTOR® may suggest a more competitive price or offer more favorable terms.
  • In order to judge your competition, your REALTOR® will provide you with recent sales of comparable homes in your area, as well as homes currently available in your price range.
  • Don’t take a chance by pricing your home too high!  It will just make your competition look better.  You will lose a large pool of eligible buyers who may not even look at your home because it’s out of their price range.
  • Consider marketplace trends.  Your REALTOR® will be an excellent resource in this matter.

After evaluating these areas, your REALTOR® should assist you in establishing a realistic listing price.  Once you’ve set the price for your home, your REALTOR® should customize a sales and marketing program that will target exposure to a large segment of potential buyers.

2. Property Location

Another very important factor in selling your home is location.  You’ve heard the cliché a thousand times; “location, location, location.”  The location of your home truly is a big factor when selling.  Buyers may consider any or all of the following when determining where they want to purchase a home:

  • Proximity to schools
  • Proximity to amenities including hospitals and shopping centers
  • Street traffic/neighborhood noise
  • Property tax expense

3. Property Condition

Buyers consider the structural and mechanical integrity of your home as well as the upkeep and cosmetic appeal.  Before listing your home, make sure it is in good condition from top to bottom.  Anything that is in disrepair will show up on a home inspection and, depending on the severity, could quite possibly affect the sale of your home.

In addition to getting your house in tiptop shape, you want to do the same with your lot.  Your lawn doesn’t have to be as perfect as a putting green, but it should appear healthy, well maintained.

Your REALTOR® should guide you on what you can do to maximize the value of your home, making it even more appealing to buyers.

4. Market Conditions

Market conditions play a major role in the sale of your home.  Influential factors include:

  • Interest rates
  • Competition from other properties
  • The economy
  • Consumer confidence
  • Weather

These factors are beyond our control; therefore your REALTOR® should respond to these conditions with the appropriate marketing and price considerations.

You’ve probably heard the term “seller’s market.”  In a seller’s market (also referred to as a “hot” market), homes sell quickly.  Often in a seller’s market, there are fewer homes on the market, meaning less competition.  This also means you have a better chance of receiving your asking price, and in fact, you may even be offered more.

On other side of the coin, in a “buyer’s market” (also referred to as a “flat” or “cold” market), sales lessen, more homes are available, and buyers often find great deals on houses.  If a seller is motivated (perhaps he is paying the mortgage on both the home he is selling and a new home), the selling price may be reduced, resulting in a bargain for the buyer.

5. Contract Terms

In real estate, the terms of the sale can make or break a contract.  House sale contingencies, closing dates and exclusions of accessories or fixtures should always be handled up front, in order to avoid any confusion that could affect the sale.  Your REALTOR® will handle the necessary details of drawing up the contract and confirming facts, figures and details.

Essential terms found on a real estate contract include the following:

  • Names of the buyer(s) and seller(s)
  • Property description
  • The good faith earnest money deposit
  • Purchase price and exact terms of sale
  • Personal property to be included in home sale (i.e. stove, refrigerator)
  • Amount of time acceptable for purchase offer
  • Professional inspection
  • Seller’s disclosure of known defects

6. Marketing

When marketing and advertising are done correctly, your home will sell more quickly and command a higher price.  Every property is unique, and therefore your REALTOR® should design a marketing plan to target the segment of buyers who would be most interested in your home.

You’re probably familiar with many real estate marketing tactics.  Soon after listing your home with an REALTOR®, a For Sale sign is placed in your front yard, and ads are placed in the newspaper and on social media.  Your REALTOR® may hold an open house to allow interested parties to tour your home and ask questions.  Your house will also be displayed on the Internet.

Beyond this “surface” marketing, your REALTOR® is working behind the scenes to sell your home.  This includes marketing your home to other REALTOR®, in addition to home buyers.

 

Contact Infinity Realty Guam today for the real estate company that will provide quality service you deserve.  (Click here).

DISCLAIMER: This information is provided for general awareness only and is not intended for the purpose of providing legal, accounting, tax advice or consulting of any kind.  Please consult with a professional in their respective expertise for complete details.