Often I am asked by my clients on how to sell their homes faster and for more money in this current downward market. Since 80% of properties on market are either being sold short or is foreclosed and put back on market by banks, distressed sellers has only one option which is to lower the price. Most bank owned properties are significantly lower in asking price but after a few multiple bids (one I faced with 30 bids) the purchased price is at or above market value.
Photo by: alexlatorre
Depending on my client's unique situation, instead of a price reduction, I suggest my client to increase value of their home and add greener features. Examples would be to paint the house with no VOC paints, de-clutter the home, buy ENERGY STAR appliances, etc… Because most of the time buyer's buy what they SEE and FEEL, if a home is something that they have to do the fixings, price reduction is all they see. Here's a simple 10 steps on how to sell your home greener, faster, and with more money in your pocket.
1. Contact your Realtor to set Goals and Plan - The home-selling process typically starts several months before a property is made available for sale. It's necessary to look at a home through the eyes of a prospective buyer and determine what needs to be cleaned, painted, repaired and tossed out. Ask yourself: If you were buying this home what would you want to see? The goal is to show a home which looks good, maximizes space and attracts as many buyers – and as much demand – as possible. Selling a home is an important matter and there should be a good reason to sell – perhaps a job change to a new community or the need for more space. Your reason for selling can impact the negotiating process so it's important to discuss your needs and wants before you list your home.
2. Presentation – Setting the stage to sell your home is very important. Making a good first impression can mean the difference between receiving serious offers for your home or being subjected to months of lookie-loos dropping by but never buying. Home selling is part science, part marketing, part negotiation and part art. Unlike math where 2 + 2 always equals 4, in real estate there is no certain conclusion. All transactions are different, and because of this, you should do as much as possible to prepare your home for sale.
3.Price - Every reasonable owner wants the best possible price and terms for his or her home. Several factors, including market conditions and interest rates, will determine how much you can get for your home. There's the price owners would like to get, the value buyers would like to offer and a point of agreement which can result in a sale.
4. Improvements – How do you increase value of your home? One way is to improve your home in ways that potential buyers consider it more valuable than any other homes on the market. Most sellers improve cosmetic repairs to attract buyers, however in current market, competition is fierce where buyers have many homes to choose from. Should you move or improve your home? Your Realtor or contractor can help you determine cost vs. value of improvement based your your unique situation.
5.Promotion - Promotion plan will be based on your goals and terms. Whether it's to put on multiple listing service, open house, internet marketing, host a special event, have a raffle.
6. Sustainable Marketing - Depending on your unique situation you can use sustainable marketing ideas, such as:
Consultation with Energy Rater, get an energy rating for your home and make improvements.
Consultation with Green Consultants to advise on sustainable home improvements.
Obtain green certifications if possible
Feng- Shui Consultation
WIth improvements you made you can market your home according to your promotional plan. Examples would such as putting on Green MLS Listings, blogs, and other Green Websites.
*important note* Make sure your Realtor understand and can communicate to potential buyers the BENEFITS of such features and owning a greener home.
7. Negotaition – When you receive offers, your Real Estate professional should assist you in the bargaining process, offering advice and counsel as offers are received and by working closely with legal counsel, tax specialists and inspectors as required.
8. Escrow – Usually under contract, you have contingency period where we need to help you do your due diligence and prepare all disclosures. Buyers usually hire a professional inspector to inspect the property to see if there are any necessary repairs. Some repairs may not be necessary because your team will repair it by using sustainable methods.
9. Move – After removing all contengencies from both parties, start preparing to vacate the property. The moving center on Homestore.com provides calculators as well as information on moving options, storage, truck rentals and related topics. This information, plus assistance and advice from your REALTOR®, can ease the moving process.
10. Close - Once you have reviewed and approved all disclosures and repairs, your Realtor should help you prepare to close.