LIL' BUDDY'S BLOG - SELLING SMART IN A BUYER'S MARKET!
THE CHICAGO REAL ESTATE MARKET, AND OTHER THINGS CHICAGO, FROM THE POINT OF VIEW OF A LITTLE WHITE DOG!
Grrrr! (Hello!) from a basement on Western Avenue - the Worldwide Headquarters of Dean's Team!
This is the first of a three-part series of how you, as a home seller, buyer, or real estate investor, can best take advantage of today's real estate market.
I speak from a position of some knowledge.
As you may know, I am the only Pekingese dog licensed as a Real Estate Broker in the State of Illinois. Look me up, if you'd like! Yes, there are a couple of German Shepherds licensed as Property Managers in Downtown Chicago. I know of a Spaniel who is a Licensed Salesperson in Niles, but he is up in years (almost 11 now), and doesn't do much business anymore. There is a cute little Schnauzer working Naperville, but, unfortunately, she is in the business part-time - a stay-at-home dog, who spends most of her time with the day-to-day chores of managing a household and taking care of her family. The only other Real Estate Practitioner on my list is a Basset Hound in Oak Park, but he mainly does appraisals.
Are you a home seller? Is your house on the market right now? It's not as easy as it used to be, is it? Your friend and his wife might have sold their home for a lot of money a couple of years ago, but appreciation is not automatic now!
Take the advice of a Little White Dog, and consider these ten tips -
1. PRICE IT RIGHT, FROM THE START. PERIOD!
Please, please, please - don't "test the waters" with a higher-than-market price, and never say "we can always come down." Often times, as we advise our clients, to take a look at comparable property data, and use these guidelines as your MAXIMUM price. In some cases, depending on your timing , the condition of your home, and your specific situation, your actual market price may need to be set LOWER than other comparable properties. In many areas, final sales prices are stagnant, or, in some cases, declining.
2. STAGE IT PROPERLY - RIGHT AWAY!
Home Staging involves a number of things. You've got to arrange your furniture and accessories to make the rooms look their largest. Turn of the lighting do - bright rooms look much bigger than dimly-lit rooms. Keep in mind, even in the summer, many showings take place at the end of the day, after folks come home from work. A room in shadows looks smaller than one brightly lit. Finally, CLEAN, CLEAN, CLEAN! A very detailed cleaning - white glove clean. With a very large inventory (in Chicago, available inventory is over 20% higher than this time last year), a dusty fixture, or a grimy microwave, or toothpaste in the bathroom sink, or an unmade bed, or a full or partly full wastebasket, can mean the difference between, "Wow, nice house!" and "Let's move on!." On our Team, Dean Moss is an Accredited Staging Professional - he can advise you on what you need to do before you hit the market!
3. HAVE THE PROPERTY SHOWABLE AT ALL TIMES, AND WITH SHORT NOTICE!
You never know if the prospective showing you refused because it is inconvenient might have been a thrown-away buyer.
4. NEVER REJECT AN OFFER - EVEN A LOW OFFER!
Don't get me wrong, folks! This Little White Dog is no pushover. But COUNTEROFFER ANYTHING! There is no sin in saving money, and buyers, especially first time buyers, have been advised by friends, family, and the media to "start low". Keep on track - COUNTER ALL OFFERS TO PURCHASE, even if you have to counter high!
5. LOWER YOUR PRICE QUICKLY, AND SYSTEMATICALLY, UNTIL YOU GET AN OFFER!
Every property, in every market, will sell when the price is right. It sometimes take time, however, to find the correct price level. If no action on the house within the first two weeks, lower your price in bracketed 3% increments until you get an offer. Continue this price reduction strategy until you get an offer. Keep a "lower, then stay firm" mentality - but you have to lower as needed to sell your home. We at Dean's Team would rather have you counter a low offer, than get no offers at all.
6. CAN YOU WAIT? IS RENTING RATHER THAN SELLING AN OPTION?
If you have the flexibility, waiting until a Seller's Market returns is an option. Keep in mind, however, that when that occurs (and IT WILL, it's just a matter of WHEN), the price of the home you are purchasing will increase as well - so you might not really be ahead financially at that time. The Rental Market is stronger now than it has been recently. You might be able to find a tenant to cover your housing costs at your old home or condo, but you run the risk of tenant trouble, possible eviction headaches, or late or missing rent. It is also possible your tenants can trash your beautiful home, and you will have to pay dearly to clean it up after they leave. Ask our Team about there suggestions in these areas - it's tricky here!
7. FSBO - NO GO!
Considering selling by-owner? You think you'll save the Real Estate Brokerage Fees, right? Wrong! In most cases, buyers looking at by-owner properties offer lower offers than those homes who's sellers are being represented by full-service Real Estate Brokerage Companies or Teams. Why? The FSBO's have considerably less exposure, and FSBO Buyers want to save the same buck YOU want to save. Also, don't forget about post-agreement discounts common with homes sold by-owner - inspection credits, delayed closings, walk-through issues. If you GO FSBO, you do not have a professional with experience in things like this standing in your corner to protect you. In a 2006 study, the National Association of Realtors found that most by-owner sales prices are, on average, 32% less, net, than those sold by Listing Agents!
8. PRE-INSPECT YOUR PROPERTY, PROFESSIONALLY!
Many sellers hire their own Professional Property Inspector before they go to market, to avoid problems with unanticipated inspection repairs and requests for monetary credit from the buyers before closing.
9. GET YOUR HOUSE SOLD FIRST - THEN, LOOK FOR A NEW ONE!
Unfortunately, in today's Buyer's Market, many of our clients are finding their ultimate sales price is lower - sometimes, quite a bit lower - than what they thought they would sell for initially. If you buy first, you're doing the process in REVERSE - you don't know how much money you will walk away with, end up buying your new home for too much money, and get caught up in the bind where you HAVE to sell, no matter the selling price of your current home. SELL FIRST, negotiate POST-CLOSING POSSESSION (our Team can show you how this will work), and THEN seek out your new home. This is especially true today!
10. DON'T MAKE UNNECESSARY IMPROVEMENTS!
We all know, everybody has a relative, or friend, or co-worker, who advises you to spend a lot of money fixing up your house before you sell. "Paint the whole house," say some. "Finish the basement, change the carpet," say others. "Buy a new refrigerator," says Sis. Our Team, has found, though our experience selling nearly 500 homes and properties throughout the years, most of these expenses have a negligible effect on the ultimate sales price of your home. Why spend $5,000, and get only $1,000, if that, back in return. LISTEN TO THE PAW! Keep your wallet in your pocket with regard to improvements at selling time!
HEY YOU COLLIES, BEAGLES, POODLES? Do you have any home-selling suggestions you would like to share? Just give me a bark, and will pass your thoughts along!
YOUR ACE REPORTER ON FOUR PAWS,
BUDDY HOLLY MOSS
