Seller's Guide
Pricing is crucial. The standard for determining whether a listing is priced too high can be readily identified by the following three aspects:
If a listing has been on the market far longer than the average days for similar listings to sell, and……
…it has been marketed to the broadest possible buyer pool…and
…the economy and real estate markets have remained stable…
…then by definition, a listing is overpriced.
Pricing, therefore, requires a solid strategy based on current market conditions. A seller’s market, for example, generally supports a strong asking price, but there are limits. Buyers have access to as much market data as a Realtor® and, as a result, can make fairly accurate pricing judgments. If they perceive a home being priced above what the market will support, the listing could remain unsold for weeks or even months, even during a seller’s market.
Underpricing also has drawbacks. In a buyer’s market, it’s easy to determine if a listing is undervalued if it receives one or more offers right out of the gate. However, it’s too late to do much about it other than refuse to sell. A listing can be temporarily removed from the market and later relisted at a higher price, but is that truly an efficient way to sell?
When a home is undervalued in a seller’s market, it often leads to a bidding war. In such cases, the final selling price usually reflects real market value, since in a bidding war, a listing tends to sell for more than its listed price.
There is no substitute, then, for a Comprehensive Market Analysis (CMA) to avoid overpricing or underpricing your home. A CMA, when conducted carefully and using relevant sales data by an experienced Realtor®, will identify a price range for the home that closely reflects current market conditions. It’s not a science or an appraisal; it’s an informed valuation.
Other Pricing considerations.
The “Time vs. Treasure” equation. Every month a property remains on the market, the more money out-of-pocket. By pricing the property correctly or making timely price adjustments, a homeowner could actually come out ahead. For example, if a home’s carrying costs (monthly mortgage payments, taxes, insurance, utilities, maintenance, etc.) are $5,000, and a listing stays on the market for eight months without a sale, the seller would have been better off listing it for $25,000 less rather than accruing $40,000 in carrying costs.
Pricing a home based on arbitrary factors such as how much money a seller needs from the sale or assuming that every buyer will love the property as much as the homeowner does often results in a sale taking much longer than it otherwise would.
First impressions matter. There’s no underestimating how much first impressions influence a potential buyer. When meeting an individual for the first time, impressions can form in as little as 1 to 7 seconds. Initial judgments about trustworthiness happen almost instantly. It is no different when a buyer sees your home in-person for the first time.
Start preparing 2–3 months before listing. Waiting until a week or two before listing your home not only causes unnecessary stress but also guarantees the house will not be shown in its best light.
Consider these steps to star with:
A pre-sale home inspection to identify and fix issues early to avoid surprises that could hurt the price or delay the sale.
Address obvious defects, such as a leaky faucet, loose door handles, a cracked window pane, or doors that don’t shut properly.
Have the furnace and septic system cleaned. These two items alone can raise red flags with buyers if either system has had little or no maintenance.
Exterior Prep:
Clean up or enhance landscaping.
Touch up exterior paint, if necessary, especially the main entrance. Purchase a new entry mat if the current one looks old and tired.
Grade the driveway if it’s stone or gravel; if paved, patch as necessary. Make sure walkways are in good shape. In winter, it’s important to keep everything plowed, salted and shoveled.
Interior Prep:
Declutter and pack away items and furniture you will not need prior to moving. The more open a home feels, the better.
Consider the rule “Haven’t used it in a year? Maybe we should donate or toss it.” Why pay to move something you’ll probably never use again?
Organize closets and cabinets to highlight storage space. Buyers will most certainly look inside them.
Remove personal items, such as photos and mementos. Too many personal keepsakes can make it hard for a buyer to imagine themselves in someone else’s home.
Thoroughly clean the kitchen and appliances. Don’t be surprised if a buyer opens the refrigerator, oven and dishwasher to see how well they’ve been maintained.
Clear kitchen counters of small appliances or utensils, especially those you rarely need or use. Again, it’s important for a buyer to visualize the available space.
A clean and spotless bathroom always leaves a good impression. Tile grout and glass shower walls almost always need attention. Store all health and personal care products during showings.
Pet orders can quickly turn someone off. It can be a serious issue if someone has allergies or doesn’t prefer to have pets (rare, but it happens!).
Replace burned-out light bulbs. Small things can make a big difference.
If you lack the time and energy to handle these tasks, it’s recommended to hire professionals for exterior work or a thorough deep-clean of the interior several days before listing the home. A thorough cleaning will address dusty ceiling fans, light fixtures, baseboards and other items often overlooked during regular cleanings.
Finally, hire a mover early enough in advance. Their schedule may be heavily booked, especially during peak seasons like spring, summer, and fall.
Prioritize essential fixes with the best Return on Investment (ROI) upgrades. Focus on repairs and updates that eliminate buyer objections and avoid unnecessary full-scale renovations. For example, recovering the full cost of a complete kitchen remodel would be difficult if the rest of the home also needs major updates. The aim is to prevent overspending while still increasing appeal.
Focus on targeted, cost-effective updates, such as painting the kitchen cabinets and replacing hardware and small fixtures. Repaint rooms with unusual, bright, or dark colors using neutral shades. Buyers rarely get a chance to repaint interiors before moving in, and they will consider the cost of painting when making an offer.
As mentioned in Setting The Stage, a pre-sale home inspection helps identify issues early, preventing surprises that could hurt the price or delay the sale. Buyers often use any deficiencies to negotiate concessions from sellers.
What is the role of a Realtor®?
Plainly stated, the listing broker’s main duty is to represent a homeowner in the sale of their property, aiming to secure the highest price in the shortest time frame. However, managing a listing involves many responsibilities.
Asking a broker what they view as their primary duty might reveal their strongest skills, such as marketing, social media engagement, communication, administrative tasks, negotiation, presence, or active listening. But what they don’t mention can be even more revealing. It’s important to know early on if a broker lacks certain skills needed to successfully close a transaction.
Time in the business isn’t always the best indicator of a broker’s skill, nor is a large volume of business, which equates to a busy schedule. A busy broker might not have enough time to give your listing the attention it needs.
A broker with strong local market knowledge and a proven track record relevant to the property type is worth considering. Land, condos and townhouses, and historic homes, for example, all require specific expertise.
Compatibility is important. No matter a broker’s skills, a bad fit seldom leads to a smooth and successful deal.
Do they have a wide network of brokers, not just locally but also regionally or nationally? Connections matter. A buyer could come from the same town or another state. Your broker should be able to reach the largest possible pool of buyers.
We Are Ready to Assist.
When you hire Alan DiStasio, you can count on clear communication, complete transparency, and solid strategic advice from over 27 years of experience in real estate sales and executive leadership. During that time, Alan has built a strong reputation for setting clear expectations and always prioritizing his clients’ needs.
Contact us today to discover how we can guide you through the entire process. We will work tirelessly to ensure you experience a smooth selling journey.
Get assistance in determining current property value, crafting a competitive offer, writing and negotiating a contract, and much more. Contact me today.