Market Positioning your Home

 

Interested in selling your home? You probably have a lot of questions and many things to accomplish before putting your home on the market. You are in the process of deciding how your Realtor is going to handle one of the biggest investment decisions of your life. Selling your home is a privilege that we will approach with great sensitivity and professionalism.

 

"Our goal is to provide you with the most professional service available, and to sell at the highest possible price, in the shortest period of time, and the least amount of inconvenience”

 

Personal Counseling

 

How long does it take to get a contract on my home? It could take a day or longer, depending on your motivation, price, condition and location.

 

Motivation 

Your motivation sets the tone for price, terms and condition. Motivation will determine if you will do any improvements to enhance your property if needed. Your Motivation could be as simple as wanting to move to a bigger home with more bedrooms, a job transfer, or other personal reasons. Depending on your motivation, I may recommend a strategic price to address your needs.

 

Market Value  

The fair market value of your home reflects historical values or comparable sales that have occurred within the last four to six months, as well as competing properties for sale that are similar (Supply and Demand).  

Pricing of your home may be affected by economic and political conditions, mortgage rates and costs to obtain those rates, seasonality, your motivation, terms of sale, property condition, and location. Appraisers are mostly concerned about the historical information. It is up to your professional to extrapolate the other components affecting value and determine how they affect the price of your home. The historical prices of homes sold are then compared to market price demand, supply and absorption. We then establish a pricing range depending on the location of your home. Appraisers have to confirm that your historical values are in sync with the market value and they match the purchase price on the purchaser's contract.  

Realtors do not establish the ultimate price of what a home will sell for, it’s determined by the market demand and supply. Realtor’s primary function is to suggest a realistic price for your home and implement the marketing plan to achieve a sale of your home.

 

Purchasers will ask the same questions you asked when you purchased your home;

 

· What features attracted me to this home?

· How did the seller’s asking price enter into my decision making process?

· Did I compare the price of this home to others on the market at the time and did you have a comparative market analysis of the home you purchased? 

To get the most money for your home, price it realistically in the beginning when exposed to the market initially. Time has proven that the longer a home stays on the market, the less it will sell for. Informed buyers today are savvy and know the value of a home before making an offer. They will recognize the realistic value of your home and offer accordingly. You will receive less money for your home if you overprice it, than if you price it at market value from the begining.In declining or accelerated markets, price it according to projected values in the next 90 days.

 

Overpriced homes will experience the following:

 

· Minimize offers

· Lower agent response and minimal showings on the home

· Limit qualified Purchasers

· Limit financing and potential appraisal challenges weeks later

· Waste advertising dollars

· Nets less for the Sellers

 

It is very important to price your home at a competitive market value from the beginning. The market is very competitive, so even over-pricing by a few thousand dollars could mean that your home will not sell. Interestingly, your first offer is usually your best offer. Our primary purpose is to sell your home, not the price. All the exposure in the world will not sell an overpriced home. An agent’s enthusiasm for a high price that “you must have” will not sell a home. The market is not always kind, but the market is never wrong.

 

Terms  

Terms mean that you offer your home for sale to the purchasers with either a conventional loan or Cash. Owner assisted financing, or other terms acceptable to you in which the purchasers can finance your home. 

Conventional financing is most common for purchases in Denver metro. As a seller, the type of financing offered is the equivalent of “cash” to you but with a catch. The Purchasers lender has the cash and various steps are necessary for the Purchaser to complete prior to you receiving the cash. That’s why it’s so important to check that the purchaser is prior to accepting the offer, or making the contract conditional upon obtaining additional qualifying information before consummating the contract.

 

Condition  

Condition is one of the most important components in selling your home. When you were looking to purchase a home, what was your opinion of a home in need of repair? Were the repair costs doubled in your mind? Was it worth the inconvenience of repairing? Could you see beyond the cosmetics? What outstanding features did you remember about the home? What impression did you get of the sellers? Did it make you think the sellers were not motivated to sell? We can continue the questions, but you probably understand the importance of proper condition. We will advise you on any improvements needed to enhance the condition of your home. 

Price may off set a deficient condition, but you are generally better off doing the improvements before marketing your home.

 

Location, Location and Location  

Location is an intangible element that is determined by the demand or lack thereof from the purchasers in the market place. You as a seller know how the value of your location will affect the pricing of your home. If you are moving because of location, do not expect the purchaser to glaze over the concern of your home location. Price and patience will conquer location.

 

How Long will it take to Sell my Home?  

When to sell a home is a personal decision that may determine when and how your home will sell. Under normal circumstances, it takes a prospective purchaser who needs new financing approximately 4 to 6 weeks for loan approval. The time that it takes to get loan approval normally determines how long it will be before closing. Considering your personal timing, the closing usually takes place within 6 weeks after contract acceptance. 

As mentioned in the beginning of this section, selling your home could take a day or longer depending on the components affecting the sale of your home.

 

Offer  

Once an acceptable offer is received and accepted, the closing and loan approval dates on the contract will indicate when your home should close. After we review the contract and we examine the merits of the offer, you may accept the contract as submitted, counter the contract, or reject the contract. If you wish to make a counterproposal, we will then deliver the counter to the Selling agent. The purchaser can accept, modify, or reject the contract. Until all parties agree in writing by signing a contract or counterproposal to the contract, the property will still be marketed. Verbal acceptances are not binding to the parties.  

Once the contract is accepted in writing, the purchaser will perform the inspections of the physical condition of the property and any other inspections as per contract. We may still market the property for sale by "taking back-ups" until all contingencies are removed from the contract. We require the purchaser to submit a lender letter stating the ability of the purchasers to qualify for their financing. A pre-qualified purchaser to purchase your home is our goal!

 

How much will I Net? 

You may be wondering how much you will net from the sale of your home. Part of our service is to figure the approximate amount of net equity that you will receive at closing. You will get a cashier's check or wired funds (your choice) at closing made payable to those named on the deed. 

Call Roy Lopez Today or e-mail:

303-888-7800 or 303-773-3399

roy@roylopez.com

The Kentwood Company

5690 DTC Boulevard, Suite 600 W

Greenwood Village, Colorado 80111

www.Kentwoodrealestate.com