Jun. 7, 2008
It is disappointing…
…to place your home on the market for sale expecting that it will sell immediately. The plans that are made for moving have to be put on hold.
Possibly, you lose the home you want to purchase because you need the equity out of your existing home or possibly because you can’t or don’t want to make two house payments.
The longer you home stays on the market, the more likely other agents and prospects will think something is wrong with it. There may be nothing wrong with it but perceptions can become more important than the truth.
If this happens, the result is that the home will be shown less, actually making it more difficult to find the right buyer for your home.
Principle – Position your home with as many favorable marketing factors as possible
Price is the single most important factor in a successful sale. It can overcome the other obstacles including location, condition and terms.
A price adjustment must exceed invisible thresholds in order to induce increased activity. Part of this is human nature which explains why stores price things at $9.99 instead of $10; it sounds a lot less.
However, computer-aided searches have added a new dimension to this strategy. When an agent or prospect on a website enters a price range, they will generally enter a certain range. For instance, if a person is hoping to buy a $225,000 home, they might look up to $250,000. If a listing is priced at $270,000, even though the owner might take $250,000, and the owner reduces it to $260,000, it still won’t show up in that search.
A skilled real estate professional can advise you where the thresholds are relative to the value of your home.
Location considered the very most important factor when buying a home and it is still important when selling the home. However, since the home cannot be moved, an adjustment in one of the other areas, usually price must make up the deficiency.
It is possible that a buyer will pay a premium price for an excellent or unusual location. For the same reason, but with opposite effects, if the home has a poor location, the buyer will penalize the price.
Condition of the home is important because most buyers, regardless of their price range, spend most of their savings on down payment and closing costs. This means they won’t have the funds to make necessary or cosmetic repairs immediately and will have to live with it the way it is.
The best strategy is to replace carpet, floor coverings, paint, and carpet with neutral colors rather than to give the buyer an allowance to pick what they want. In general, buyers show little imagination when looking at homes. Even if they can see beyond these improvements, they will usually deduct more than the cost you would incur.
Terms describe any financial considerations regarding the mortgage that a buyer would get. Since most buyers need to borrow for the purchase, any leverage that they can get to ease the payments can make the home more marketable. Examples would be owner carried first or second liens, temporary buy-down of the interest rate, seller-paid points, or willingness to sell FHA or VA.
Marketing Efforts include advertising, promotion, and open houses but also include many other things based on the seller’s decisions. Marketing begins with developing a product that will appeal to a buyer in terms of price, location, condition, and terms.
The best marketing efforts cannot overcome a home that is over-priced, is in a poor location or not satisfactory condition.
You rarely get a second chance at making a first impression. To maximize the new marketing efforts, all marketing factors must be considered and adjustments made if necessary.
Principle – Buyers compare your home with others on the market.
Buyers will compare the different homes that they see to determine value. If two or more homes of the same size are on the market in the same area, for the same price, the one in the best condition will probably sell first.
If two or more homes of the same size are on the market in the same area, in the same condition, the one with the best price will probably sell first.
If two or more homes in the same condition are on the market in the same area, at the same price, the largest one will probably sell first.
If two or more homes of the same size are on the market for the same price, in the same condition, the one with the best location will probably sell first.
Principle – More activity will take place in the first few weeks of the listing than during any other period.
It is critical to position the home properly in the beginning because after the initial surge of activity, the only people looking at the home will be new in the market and may not be ready to make a decision immediately.
Strategy – Position an expired listing like it is new on the market
Doing this will create excitement with the buying prospects and more importantly, the agents in the area. Agents know that prospects compete with each other for the nicest properties. Positioning a home like it is new on the market may be able to regain this initial enthusiasm.
Principle – Well executed plans get anticipated results
A comprehensive marketing plan with specific strategies and dates for them to be accomplished is even more important for selling a home after it has failed its initial market period.
You are going to want to see active marketing efforts made by the agent to insure that the second attempt is successful. Regardless of any prior relationship, the success sale of your home now depends on tangible efforts designed to obtain results.
I would welcome the opportunity to show you exactly what I intend to do to get your home sold. To do this, I would like to make a preliminary visit to survey the home. Shortly following this examination, I will present to you the specific marketing plan tailored for your home based on your exact situation.
I will show you the exact marketing pieces that I intend to use and will outline the groups that will be targeted as well as the timeline.
Strategy – Expose your home to the largest buying segments
First-time homebuyers have accounted for more than 40% of all homes sold each year since 1997. This is a significant group that must be addressed in most price ranges.
Move-up buyers will generally buy a 50% higher priced home than the one they sell. This group is easily identified and susceptible to target marketing.
Move-down buyers will generally buy a home 2/3 the price of the one they are selling. Again, this group is easily identified and can be made aware of your home with targeted mailings describing your home
Relocation buyers are moving from over 50 miles away. Based on historical data, the most frequent areas relocating to this area are known and can be targeted.
Investors are interested in properties that will rent well and will continue to go up in value. Your home can be packaged as an investment in addition to a principle residence.
Principle – Position your home with as many favorable marketing factors as possible
Price is the single most important factor in a successful sale. It can overcome the other obstacles including location, condition and terms.
A price adjustment must exceed invisible thresholds in order to induce increased activity. Part of this is human nature which explains why stores price things at $9.99 instead of $10; it sounds a lot less.
However, computer-aided searches have added a new dimension to this strategy. When an agent or prospect on a website enters a price range, they will generally enter a certain range. For instance, if a person is hoping to buy a $225,000 home, they might look up to $250,000. If a listing is priced at $270,000, even though the owner might take $250,000, and the owner reduces it to $260,000, it still won’t show up in that search.
A skilled real estate professional can advise you where the thresholds are relative to the value of your home.
Location considered the very most important factor when buying a home and it is still important when selling the home. However, since the home cannot be moved, an adjustment in one of the other areas, usually price must make up the deficiency.
It is possible that a buyer will pay a premium price for an excellent or unusual location. For the same reason, but with opposite effects, if the home has a poor location, the buyer will penalize the price.
Condition of the home is important because most buyers, regardless of their price range, spend most of their savings on down payment and closing costs. This means they won’t have the funds to make necessary or cosmetic repairs immediately and will have to live with it the way it is.
The best strategy is to replace carpet, floor coverings, paint, and carpet with neutral colors rather than to give the buyer an allowance to pick what they want. In general, buyers show little imagination when looking at homes. Even if they can see beyond these improvements, they will usually deduct more than the cost you would incur.
Terms describe any financial considerations regarding the mortgage that a buyer would get. Since most buyers need to borrow for the purchase, any leverage that they can get to ease the payments can make the home more marketable. Examples would be owner carried first or second liens, temporary buy-down of the interest rate, seller-paid points, or willingness to sell FHA or VA.
Marketing Efforts include advertising, promotion, and open houses but also include many other things based on the seller’s decisions. Marketing begins with developing a product that will appeal to a buyer in terms of price, location, condition, and terms.
The best marketing efforts cannot overcome a home that is over-priced, is in a poor location or not satisfactory condition.
You rarely get a second chance at making a first impression. To maximize the new marketing efforts, all marketing factors must be considered and adjustments made if necessary.
Principle – Buyers compare your home with others on the market.
Buyers will compare the different homes that they see to determine value. If two or more homes of the same size are on the market in the same area, for the same price, the one in the best condition will probably sell first.
If two or more homes of the same size are on the market in the same area, in the same condition, the one with the best price will probably sell first.
If two or more homes in the same condition are on the market in the same area, at the same price, the largest one will probably sell first.
If two or more homes of the same size are on the market for the same price, in the same condition, the one with the best location will probably sell first.
Principle – More activity will take place in the first few weeks of the listing than during any other period.
It is critical to position the home properly in the beginning because after the initial surge of activity, the only people looking at the home will be new in the market and may not be ready to make a decision immediately.
Strategy – Position an expired listing like it is new on the market
Doing this will create excitement with the buying prospects and more importantly, the agents in the area. Agents know that prospects compete with each other for the nicest properties. Positioning a home like it is new on the market may be able to regain this initial enthusiasm.
Principle – Well executed plans get anticipated results
A comprehensive marketing plan with specific strategies and dates for them to be accomplished is even more important for selling a home after it has failed its initial market period.
You are going to want to see active marketing efforts made by the agent to insure that the second attempt is successful. Regardless of any prior relationship, the success sale of your home now depends on tangible efforts designed to obtain results.
I would welcome the opportunity to show you exactly what I intend to do to get your home sold. To do this, I would like to make a preliminary visit to survey the home. Shortly following this examination, I will present to you the specific marketing plan tailored for your home based on your exact situation.
I will show you the exact marketing pieces that I intend to use and will outline the groups that will be targeted as well as the timeline.
Strategy – Expose your home to the largest buying segments
First-time homebuyers have accounted for more than 40% of all homes sold each year since 1997. This is a significant group that must be addressed in most price ranges.
Move-up buyers will generally buy a 50% higher priced home than the one they sell. This group is easily identified and susceptible to target marketing.
Move-down buyers will generally buy a home 2/3 the price of the one they are selling. Again, this group is easily identified and can be made aware of your home with targeted mailings describing your home.
Relocation buyers are moving from over 50 miles away. Based on historical data, the most frequent areas relocating to this area are known and can be targeted.
Investors are interested in properties that will rent well and will continue to go up in value. Your home can be packaged as an investment in addition to a principle residence.
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The preparer disclaims all express or implied warranties for the contents of this report. Although all facts, figures and projections have been obtained from sources deemed reliable and are believed to be correct, their author assumes no guarantee or liability. This form assists in the analysis of a real estate decision and is not intended to comprehensively analyze the financial or tax ramifications for an individual homeowner. Should you feel you need legal or tax advice, it is suggested that you consult a qualified professional. This form assumes the tax preparer will itemize deductions.