MARCH 2009 - Page 1

DO-OVER How To Sell A Home That Didn't Sell The First Time In the real estate industry, homes placed on the market that do not sell are known as "expireds" -- as in "expired listings." If you put your home on the market and it didn't sell by the end of your listing contract with your broker -- or if you're ready to list your home and want to make sure this doesn't happen to you -- read on. In today's competitive housing market, any number of factors can be responsible for a home's failure to sell. And every one of those problems can be corrected, one way or another. Of course, it pays to take a serious look at what potential buyers and their agents say about your home after touring it. Though it's natural to discount criticism of a home you've grown to love, or at least like, you do so at your peril. Remember: Your opinion about your home no longer matters once you list it for sale -- the opinions of potential buyers and their representatives are what count. If your home isn't winning them over, it's time to make changes. Here are the issues you should take a close look at to get your home sold quickly in today's market. PRICE Listing your home at the right price is the most important decision you'll make in your effort to sell it. Of course, you'll want to make as much money as possible on it given the current market. The key to selling is to avoid pricing your home too high, which only turns buyer attention to other properties. Strategy: We'll do a thorough Comparative Market Analysis (CMA) to ensure your home's price strikes that delicate balance between "above market" and "giving it away." Our analysis will take into consideration the sales prices of comparable homes that recently sold in your area. We'll factor in the listing prices of similar homes currently on the market. And we'll look at the prices of home listings that expired (including yours, if your home has been on the market before). With a baseline price computed, we'll then compare the features of your home with those of the comparable homes in our analysis, adding and subtracting from the baseline price according to the differences. For example, if your home sits on a quiet cul-de-sac, and the others don't, we'll increase your price accordingly. If, on the other hand, your home sits on the corner of two busy streets, we may advise lowering the price to compensate. (A relatively lower price is about the only thing that can compensate for a less-desirable location.) CONDITION Today's buyers look for homes they can move right into -- homes that are clean, well-maintained and neutral in color. Only bargain-shoppers will overlook needed repairs and cosmetic issues, hoping to buy at a price well below market to justify the money and work they plan to invest in the home after purchase. Strategy: Actually, there are several strategies, depending on the issues. One approach is to spend the extra money and time to put your home into move-in condition -- repainting, replacing worn carpet and flooring, making repairs, etc. Chances are the cost of such changes will be less than the price decrease you would have to take to get the home sold without improving its condition. Another approach is to maintain your market-value listing price but include a reasonable allowance in the listing for repainting, recarpeting, new flooring, etc. (You should still make repairs, if any are needed.) The beauty of this approach is that buyers can select the colors and materials they prefer while you avoid having to drop your price or spend cash before the closing/settlement. (The allowance would show up as a credit on the buyer's side of the balance sheet, decreasing your proceeds from the sale.) AMENITIES Fixtures, appliances and old floor plans that reflect the tastes of a decade or more ago are likely to turn buyers off. Strategy: Consider spending several hundred dollars to update cabinet hardware, chandeliers, wall- or ceiling-mounted lighting, bath and other types of fixtures that date your home. (Ask us about current styles if you're unsure.) You may also want to change out appliances in dated colors (e.g., avocado, harvest gold, brown), replacing them with stainless steel or white to add a fresh, modern look to your kitchen. While you don't want to invest a fortune changing your home, some older floor plans just don't appeal to today's buyers. Removing a non-load-bearing wall here or there might create a more-open look, which today's buyers prefer. Consider whether you might be able to change the function of rooms -- e.g., a small dining room might make a better living room, while your larger living room could make the perfect dining room (depending on kitchen access and location in your home). MARKETING An important issue for expireds is attracting renewed interest from brokers and agents who may have seen your home during an earlier listing. After all, these professionals are responsible for bringing potential buyers to your property. In addition, you'll want to make sure your home is easy to show and looks great every time. Strategy: We'll design a marketing plan that is sure to get the word out about how your property is "new and improved." Elements may include direct promotion to other agents and brokers, advertising that generates interest from buyers who have looked at similar properties, broker and buyer open houses and other unique activities.Remember, there are lots of homes on the market competing for buyers. To make yours the easy choice, consider: Using a "lockbox" so agents can show your home while you are away. Allowing a "for sale" sign on the property (if permitted in your neighborhood). Being flexible with showing times and with minimum advance notification (you'll want to ensure your home stays in showplace shape every day until it's sold). Finally, if you've already moved out your furnishings, consider moving in rented furniture to help buyers better visualize how they might live in the home.If you're ready to re-list an expired listing or you simply want to talk about your next step, we welcome your call!

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