Purchasing your first home is always an education process \u2013 you learn about the local market, mortgages, housing codes and zoning and negotiation. Depending on how quickly you have to move to be able to snap up a home, the purchasing process can be a bit of a whirlwind.<\/p>\n
Then, a few years down the road, you\u2019re ready to move to a new home that\u2019s bigger, closer to work or has all the extra features you\u2019ve been dreaming of. And while buying again is a whole re-education process with new market trends and regulations, this time you’ll also need to learn the ins and outs of being a first-time seller.<\/p>\n
Again, it\u2019s an education process, which is why you\u2019ll want to enlist the help of a real estate agent you feel comfortable taking advice and instruction from to get your home ready.<\/p>\n
\u201cWe help showcase their home in the best light to get the best price, and in today\u2019s market, to help them get premium pricing,\u201d says Lennox Scott, chairman and CEO of John L. Scott Real Estate in Bellevue, Washington.<\/p>\n
While the housing market may appear to be ideal for sellers, with bidding wars common and many markets reporting all-time low inventories of properties on the market, sellers should keep perspective when it comes to sale prices. Just because your home\u2019s value has increased doesn\u2019t mean your home will go for millions when it was worth $250,000 a couple years ago.<\/p>\n
According to the National Association of Realtors\u2019 Summary of July 2017 Existing Home Sales Statistics, 76 percent of existing home sales were sold for $500,000 or below. Homes that sold for between $500,000 and $1 million accounted for 12 percent of sales nationwide, and just 3 percent of homes sold for above $1 million.<\/p>\n
To better prepare yourself for putting your property on the market, follow these six do\u2019s and don\u2019ts for first-time home sellers :<\/p>\n
Do establish an offer due date.<\/strong> The key to selling your property for the price you want is positioning it so the right buyers get a chance to see it and mull it over.<\/p>\n For that reason, a strategy that\u2019s proven effective for Shane Marrion, broker and owner of Benoit Real Estate in Somerville, Massachusetts, is to price a home slightly below expected value and place the property on the market, but don\u2019t accept bids right away.<\/p>\n \u201cHold off offers for approximately seven days, group show it and do a couple open houses, and that\u2019s the best way to maximize your money,\u201d Marrion says.<\/p>\n By waiting, a successful purchase isn\u2019t dependent on who\u2019s able to make an offer first, but who\u2019s serious about purchasing the property and able to put together the most appealing bid, whether that includes a flexible timeline or even an all-cash offer in addition to the right price.<\/p>\n \u201cIt helps drive your price up and keeps everyone honest,\u201d Marrion says.<\/p>\n Don\u2019t price too high from the start.<\/strong> Even in a hot seller\u2019s market, an asking price that\u2019s too high can keep buyers from even looking at your property. Overpricing your home from the get-go will cause the property to lose momentum, which can be the biggest killer for real estate sales success.<\/p>\n \u201cYou don\u2019t want the market to hesitate,\u201d Scott says.<\/p>\n Of course, real estate agents are aware that it can be nerve-wracking for sellers to concede to a lower asking price than they want to see in the end. This is where hiring a real estate agent you trust is key, Marrion says.<\/p>\n \u201cIt\u2019s not natural for [sellers] to accept listing their property for a little bit less, but that whole less-is-more strategy works in today\u2019s market,\u201d Marrion says.<\/p>\n Do what\u2019s best in the current market.<\/strong> Your real estate agent will likely have a strategic plan for the sale of your home based on what works best in the market for achieving top dollar. Depending of the right price range for your home, that could mean anything from hosting multiple open houses to presenting it as a pocket listing.<\/p>\n Currently in the Boston market, Marrion\u2019s strategy of setting a date for offer submissions in advance is proving successful. However, he doesn\u2019t expect it to last. \u201cWhen the market changes, we\u2019re not going to be doing that. Right now, less is more,\u201d Marrion says.<\/p>\n As the market changes, caused by additional inventory or a drop in the number of active buyers, for example, agents and brokerage firms will adjust their strategy to fit demand and buyer preference.<\/p>\n Don\u2019t assume you can only sell in spring.<\/strong> If you\u2019re on a tight moving schedule or you have an eye on buying a home currently on the market, you don\u2019t have to hold off until the traditional selling season in spring and summer.<\/p>\n Especially if you\u2019re in a market where buyers are still outnumbering homes on the market, a sale for the price you want is still feasible.<\/p>\n \u201cThe buyer-to-new-listing ratio is actually better over wintertime than it is during the spring and summer,\u201d Scott says.<\/p>\n Because markets are strapped for listings particularly in fall and winter, active buyers will be eager to see the newest property for sale. \u201cAll the energy is about the new listing coming on the market,\u201d Scott says.<\/p>\n Do listen to your agent for home prep.<\/strong> Curb appeal, clutter and room updates are all things most sellers are going to hear about from their real estate agent \u2013 and they shouldn\u2019t be taken lightly. Regardless of how fast homes are receiving offers, your home needs to look stellar to get the price you want.<\/p>\n Not everyone has the money to put in hardwood floors or replace countertops, and that\u2019s OK. The most valuable changes to make are ensuring you have a well-manicured front yard and pleasant entry and clean rooms that allow buyers to focus on the home itself, not your stuff.<\/p>\n \u201cThe buyers feel like a million bucks walking up to your house, I don\u2019t care what your price range is,\u201d Scott says.<\/p>\n Don\u2019t lead with contingencies.<\/strong> Tight seller\u2019s markets throughout the U.S. mean it may be hard for you to find a new house to buy without getting stuck in a bidding war of your own, so you may need some extra time if your house sells fast.<\/p>\n But Marrion stresses you should not make the sale contingent on the purchase of a new home for you. \u201cIt actually devalues the property, and this is the best way to avoid that,\u201d he says.<\/p>\n Instead, Marrion says he\u2019ll instead include a 60-day use and occupancy clause \u2013 noted in the original listing on the MLS so it\u2019s not a surprise in negotiations. The limited leaseback option gives you the option of an extra 60 days to find a house, and the period also helps avoid any potential problems with the buyer\u2019s mortgage approval.<\/p>\n A buffer of 60 days should be enough to let you find your own next home, or at least establish a plan for other temporary housing while you continue your search.<\/p>\n