Seller’s Resources
Determining the Initial Competitive Position of Your House
A Comparative Market Analysis (CMA) is essential to determine the value of residential property. Location and characteristics of the property are the key elements in determining value, therefore the basis for valuation is similar properties in your area. The market analysis takes into account the amount received from recent sales of comparable properties and the quantity and quality of comparable properties currently on the market. The desired end result is to find a price that will attract a willing and able buyer in a reasonable time.
We will work together and take you through our Exclusive Home Positioning Program ™ Our exclusive system will enable you to maximize your market dollar and minimize your stress.
- Realistic pricing will achieve maximum price in a reasonable time.
- Your cost or profit desire is irrelevant; the market determines the price.
- The cost of improvements are almost always more than the added value.
- Houses that remain on the market for a long time become stale and stigmatized.
- A house that is properly positioned from the beginning will result in the highest net proceeds to the seller.
The Services We Provide for Sellers
- We will help you determine THE BEST SELLING PRICE for your home.
- We will supply names of reputable repair companies if necessary.
- We will develop a comprehensive marketing plan for your home.
- We will promptly advise you of changes in the market climate.
- We will present all offers to you promptly and assist in evaluating them.
- We will coordinate and monitor the settlement process.
- We will monitor the appraisal and buyers’ loan approval.
- We will stay in contact with the selling associate to ensure that everything is proceeding smoothly.
- We will be present at settlement to support you and to assist you in attaining your dream.
Tips for Multiple Offer Negotiations
Information for Sellers
It’s possible you may be faced with multiple competing offers to purchase your property. Your listing broker can explain various negotiating strategies for you to consider. For example: (1) you can accept the “best” offer (2) you can inform all potential purchasers that other offers are “on the table” and invite them to make their “best” offer (3) you can “counter” one offer while putting the other offers to the side awaiting a decision on your counter-offer (4) or you can “counter” one offer and reject the others.
Realize that each of these approaches has advantages and disadvantages. Patience may result in an even better offer being received; inviting buyers to make their “best” offers may produce an offer (or offers) better than those “on the table” – or may discourage buyers who feel they’ve already made a fair offer resulting in them breaking off negotiations to pursue other properties. Your listing broker will explain the pros and cons of these strategies (and possibly other) negotiating strategies. The decisions, however, are yours to make. If you have questions about the possibility of multiple offers and the way they can be dealt with, ask your broker to explain your options and alternatives.
Should you have questions about the possibility of multiple offers and the way they can be dealt with, ask your broker to explain your options and alternatives. Appreciate that your listing broker’s advice is based on past experience and is not a guarantee about how any particular buyer will act (or react) in a specific situation.
7 Problems of Overpricing
Even if you do find a buyer willing to pay an inflated price, over 90% of buyers use some kind of financing to pay for their home purchase. If your home won’t appraise for the purchase price, the sale will fail.
Today’s sophisticated home buyers are well educated about the real estate market. If your home is overpriced they won’t bother looking at it, let alone make you an offer.
When a new listing hits the market, every agent quickly checks the property out to see if it’s a good fit for their clients. If your home is branded as “overpriced”, reigniting interest may take drastic measures.
Overpricing helps your competition. How? You make their lower prices seem like bargains. Nothing is worse than watching your neighbour put up a sold sign.
The longer your home sits on the market, the more likely it is to become stigmatized or stale. Have you ever seen a property that seems to be perpetually for sale? Do you ever wonder-What’s wrong with that house?
Buyers who do view your home may negotiate harder because the home has been on the market for a longer period of time and because it is overpriced compared to the competition.
You will lose a percentage of buyers who are outside of your price point. These are buyers who are looking in the price range that the home will eventually sell for but don’t see the home because the price is above their pre-set budget.