Selling Your Home
- Understanding Market Conditions
- Determining the Value of Your Home
- Homes that are FOR SALE In your market area
- Homes that recently SOLD In your market area
- Homes that Failed to sell In your market area
- What Works, or Doesn't Work, when Pricing your Home
- Getting Your House Ready to Sell
- Important Information for Your Listing
Understanding Market Conditions
The real estate market is always changing. It helps to understand how current market conditions can affect your position as a seller. While North Bay's housing market is generally stable, there are three general conditions that we commonly refer to. These are what are known as a “buyers' market,” a “sellers' market” or a “balanced market.” The following chart will help you to understand each of these markets and the implications of each on selling your home.
| Buyers' Market | Sellers' Market | Balanced Market | |
|---|---|---|---|
| Market Conditions | The supply of homes on the market exceeds the demand. | The demand, or the number of buyers wanting homes exceeds the supply, or number of homes on the market | The number of homes on the market is equal to the demand, or number of buyers. |
| Characteristics | High inventory of homes with few buyers looking. Homes tend to be on the market longer and prices usually drop. | Homes are in short supply with many buyers looking. Homes sell quickly, prices usually increase, and there is a possibility of multiple offers. | When the number of buyers equals the number of homes on the market, prices are generally stable and homes sell reasonably quickly. |
| Implications | Your home may take longer to sell, and you may have less negotiating leverage in terms of selling price. | You may have more negotiating leverage and obtain a higher selling price for you property. | Buyers have a reasonable number of homes from which to choose, and negotiations are usually more relaxed. |
Days on Market & Average Selling Price
Listings to Sales Ratio
The number of homes that come on the market versus how many are sold is important in determining the type of market that currently exists. This helps us to understand the ‘inventory’ level, or how much competition there is versus how many buyers there are.
| 2008 | Listings/Sellers | Sales/Buyers | Sales/Listings Ratio | Average Sale Price | ||||
|---|---|---|---|---|---|---|---|---|
| Month | YTD | Month | YTD | Month | YTD | Month | 12 Month | |
| Your Area | 38 | 1837 | 33 | 1208 | 87% | 66% | $169,327 | $193,863 |
| North Bay | 38 | 1837 | 33 | 1208 | 87% | 66% | $169,327 | $193,863 |
Based on this information we are currently experiencing a SELLERS’ MARKET.
Pricing Your Property
The single most important decision you will make is determining the right asking price for your property. I will help you make an informed decision so that we can work together to get your home sold quickly, at the highest possible price.
Real estate studies have shown in a steady market that 75% of homes for sale at an accurately calculated suggested listing price will sell within 5 weeks or less.
Moreover, 95% of the homes priced at just 2% under the suggested listing price will sell within 3 weeks. If a home is over-priced by just 5% chances are only 1 in 20 that it will sell in 12 weeks or less.
The benefits of pricing your home correctly are:
- The property sells faster because it is exposed to more qualified buyers. Your home doesn't lose its marketability by being exposed for too long to the market.
- The closer we price your home to market value, the higher the offers will be.
- A well-priced property can generate competing (or multiple) offers.
- The real estate community is more enthusiastic about showing well-priced homes to their buyers.
Determining the Value of Your Home
Ultimately, it is the market that determines the true value of your property. Before comparing your home to similar properties to establish a competitive asking price, consider the following:
- Location, location, location!!
- Size and style of your home
- The condition of your home
- The current market conditions
The suggested listing price is an experienced evaluation of what a home would sell for between a willing buyer and a willing seller without undue influence, waiting or inconvenience.
The following report represents our considered opinion of what a buyer would likely be willing to pay for a home such as yours, within a reasonable period, in today's real estate market.
The opinions are based upon a study of selected, recently sold properties which I believe to be the most like yours. Should you wish a more formal and comprehensive report, I will assist you in arranging for a professional appraisal which would be prepared for you on a fee basis.
Homes that are FOR SALE In your market area
While all homes vary from one another by the inclusion or exclusion of certain features, this market study shows these homes, considering type, location, community, etc., to represent your best competition in the marketplace today.
Homes that recently SOLD In your market area
Regardless of what people may ask For their homes…. The only valid test of value Is the price For which the houses Were actually SOLD!
The properties noted in this section were recently sold and are presented here to show what people have been willing to pay in today's market for homes similar to the property being evaluated.
Of course, every home is unique and there will be differences between each of them. Also, the relative desires of the sellers and buyers may have been different as well as the circumstances of sale. If these factors were significant, we make allowances, plus and minus, to develop a meaningful comparison for this evaluation.
Homes that failed to sell in your market area
Many properties put on the market are over priced or may have some unique features that are not wanted by the purchasing public.
The following pages include some properties that did not sell while exposed to the market place for a reasonable period of time.
These properties shown are similar in size and style to your and usually have not sold because the seller was asking too much money considering all the factors of the property.
What Works, or doesn't work, when pricing your home
You've spent a lot of time in your home; it has been the setting for many wonderful milestones in our life, and the lives of those around you. Unfortunately when it comes time to sell you property all of those emotions have to be set aside. It is time to sell your house, not to sell your home. There's a subtle mind-shift that needs to be made and I understand that; we will work together to make that transition as easy as possible.
When a house is first listed for sale, there is an initial “flurry” of showings. How many there are is dependent on the current market conditions. It is important to keep in mind that:
- If your house is not priced properly it will be exposed to the market too long, and it's perceived value will decrease.
- If your house is overpriced potential buyers looking in the price range of the market value of your house will not be introduced to your property.
- While it is possible to reduce the asking price of your property, often potential buyers that could have seen your house have bought elsewhere.
The Importance of Early Activity
As this chart shows, early activity on a new listing is much greater than after a house has been available for a number of weeks.
A common misconception is that interested buyers “can always make an offer” regardless of the asking price. While this may be true, it can often lead to an offer being made on the property below market value.
Also, because showing activity begins in earnest so soon after listing a property, it is important that your house be ready for the market from “Day One.”
Getting Your House Ready to Sell
When getting your home ready to sell, you need to look at your house in a new way. Think of your house as a product about to go on the market where it is probably competing with brand new housing. It needs to show well-which means clutter-free and well kept.
Today's homebuyers lead busy lives and may not be interested in taking on major repairs or improvements upon moving in. You need to make our house a “10.” This guide will help you spot what is right and what is not so good about your product. It will give you the opportunity to take needed corrective action to ensure you house looks fresh, clean and well maintained when the “for sale” sign goes up.
Professional Inspection, Yes or No?
A serious buyer may want to have a professional home inspector check your house from top to bottom before making an offer. Even though this guide will help you identify problems on your own, the option of hiring a professional home inspector is open to you, as well. If you can afford it, an inspection in advance of putting your home on the market is a good idea. It is your best way of finding, and taking care of serious deficiencies before an inspector hired by a potential buyer discovers them.
Fix It First
If you need to make improvements to your home, do the work before it goes on the market. Potential buyers are not interested in hearing about your good intentions to look after defects before a transfer or ownership takes place. Even if fix-up work is underway, buyers may not be able to visualize what your home will look like when the work is finished. They will just remember it being in a state of disrepair.
Let's Begin Outside
Check Your House's Curb Appeal
How does your house look from the street? That is where prospective buyers will be when they first see your home; and, that is where they will form that all-important first impression. Stand at the curb in front of your house and note what you see:
- Remove any clutter in your yard.
- Repair cracked or uneven driveway or walkway surfaces.
- If your lawn has bald spots, apply some top dressing and re-seed. Prune trees and shrubs of dead wood. Weed and mulch flower beds, if you have them. If is the right time of the year, consider buying some flower-filled planters to enhance the eye appeal of your property. Make sure your lawn is mowed regularly. Ensure that the composter area is tidy.
- Are your windows and walls clean?
- Does your front door need paint?
- Ensure your eaves and downspouts are clear of debris and in good repair.
- Are our backyard deck and walkways clean? If not, use a power washer and do any necessary painting, staining or sealing.
- If you have a swimming pool, are the deck and pool clean (when in season)?
- Do all outside lights work? Replace any burned out bulbs, and clean fixtures of dirt and cobwebs.
- Is there a shed? Does it look presentable?
- Do the window and exterior door need recaulking? Even at six to seven years of age, the caulking may be dried out and in need of replacement.
- Do you have decorative wooden poles on the porch? Is the wood at the bottom in good condition and overall does it need a new coat of paint.
- If you have a gate, is it well oiled?
When you have completed the curb appeal inspection, carefully check the rest of your home's exterior.
Will Your Roof and Chimney Pass Inspection?
If you are uneasy about climbing onto your roof, you can inspect most items from the ground using binoculars. Otherwise, be careful when working or moving about on your roof. Unless roof repair is a simple matter of applying new caulking, you will probably need the services of a professional.
- Check the general condition of your roof. Sagging sections, curled shingles, pooled water on flat roofs and corrosion on metal roofing mean it is time for repair or replacement.
- Both masonry and metal chimneys need to be straight and structurally sound, have proper capping on top and watertight flashing where they penetrate the roof.
- All roofs undergo stress from snow and rain loads so it is possible a truss or rater may become damaged, resulting in a noticeable small depression. A professional should do this inexpensive repair.
Examine Your Walls
The condition of your exterior walls directly affects the look and curb appeal of your home.
- Replace old caulking. You may have to cut or scrape away old caulking to get a good seal. Do not seal drainage or ventilation gaps.
- Is your exterior paint looking good? If you see faded colours and cracked or peeling surfaces, you need to repaint. Be sure to get competitive bids if you hire professional painters.
- You can clean vinyl siding but defects or damage to it and to metal siding usually means replacement.
- Stucco can be repaired but some skill is required to blend patches with existing stucco.
Now, Let's Go Indoors
A prospective buyer will usually enter through your front door so, that is where you should begin your interior inspection. You want your buyer to see a neat, clean, well-lit interior. Get clutter out of sight; ensure that carpets are clean and floors are scrubbed and polished; and that walls and trim show fresh paint (preferable neutral or light colours).
Take a sniff. Are there any unpleasant odours in your home? If so, track them down and eliminate them. Ensure all your lights work and are free of cobwebs. You want your home to look spacious, bright and fresh. If you have considerable family memorabilia about, consider thinning it out. Your objective is to help potential buyers feel as if they could live in your home. That mental leap becomes more difficult for them if your house resembles a shrine to you and your family.
The most important areas of your home to upgrade and modernize are the kitchen and bathroom(s). Buyers also want to see new or recently-installed floor coverings throughout.
General Interior
- Check stairs for loose boards, ripped carpeting, and missing or loose handrails and guards.
- Most problems with interior walls are cosmetic and can be repaired with spackling compound and paint.
- Ensure doors open and shut properly. Minor sticking is normal but excessive binding indicated possible structural problems.
- Open and close all windows to ensure they work properly. Fogging between the panes of a sealed window indicated the seal is broken and the unit needs to be replaced.
Living Room, Halls, Family Room, Den, Bedrooms
Keep furniture to a minimum so these rooms do not appear smaller than they are. Ensure that traffic can flow in or through these rooms unimpeded. If they contain bookshelves or cabinets overflowing with books, magazines and knick-knacks, remove some of thee items. Ensure bedroom closets look spacious, organized and uncluttered. Create space by getting rid of old clothes and junk.
Remember to remove or lock away valuables such as jewelery, coins, currency, cameras and compact discs.
Kitchens and Bathrooms
- People splash water around in the kitchen and bathrooms so check around sinks, tubs and toilets for rotting countertops and floors. Problems could be due to poor caulking or plumbing leaks. Fogged windows, molds and sweating toilet tanks indicate high humidity levels, which you can remedy with exhaust fans.
- In the kitchen, clean all appliances, including our oven. Clean or replace your greasy stove hood filter. Clean your cabinets inside and out, as well as your countertops and backsplashes. Repair dripping faucets.
- Remove anything stored on top of your fridge and remove artwork and magnets.
- Remove any items stored on countertops.
- Remove items stored under the sink.
- In bathrooms, scrub sinks, tubs and toilets taking care to remove any rust stains. Remove mildew from showers and bathtubs. Fix dripping faucets or trickling toilets, and vacuum your fan grill.
- Clean mirrors, light switch plates and cupboard handles.
- Consider installing new 6-litre toilets if you currently have water-guzzlers.
- If you have ceramic tile in either your kitchen or bathroom, ensure grouting is intact and clean.
Basement
The condition of the foundation and main structural members in the basement are critical to the fitness of any house. The purpose of your inspection is to make sure these are sound and durable. Look for cracks, water seepage, efflorescence (white powder-like substance), crumbling mortar or concrete, and rotting wood. If any of these problems are present, you need to do further research to learn about causes and possible solutions.
In general, if your basement is damp or musty, consider a dehumidifier. Like all other areas of your home, your basement should be organized and clutter-free.
Change the filter in the furnace and have it cleaned-this is the number one item purchaser want done after a home inspection.
If you have a pet with a litter box, ensure the litter box is clean.
Garage
Get rid of the broken tools, old car parts, discarded bicycles, empty pain cans and the hundreds of other useless items that accumulate in garages. Again, you want a clutter-free zone. Use cleaning solutions to remove oil stains from the floor.
When It's Showtime
You have inspected your house and taken care of problems. Now you are ready for showings. Homes tend to sell more quickly and for higher prices when they show their best. It's very important that your home shows well. As a realtor I'm also aware that it can't always be perfect. After all, you and your family must live there too. Develop a routine that will allow you to pick up and be prepared to show in a reasonable period without duress… a 45 minute countdown, for example. This means that certain tings must be done in advance. For example, beds should be made up first thing in the morning and dirty dishes placed in the dishwasher after use so that you needn't rush around tending to this matter at the last moment. This way you can prepare for each showing in an organized, un-hassled routine.
- Pick Up Every Room - Check counters, floors, halls and stairs. Straighten up or remove newspapers, magazines, mail, toys, clothing, recreations gear, snack glasses and dishes.
- Turn On All Lights - Even those in closets and storage rooms. Electric lights have an amazing capability for creating an illusion of lightness, airiness and largeness.
- Open All Drapes, Shades and Blinds - Do all that you can to create a bright and light ambiance.
- The Bedrooms - Make up the beds, neatly and attractively, early in the morning. This is a job you don't want to have to do when you learn that the buyers will be there within the hour.
- The Kitchen - Be sure all countertops are clear and “squeaky clean.” Wipe down appliances. Be sure all dishes are in the dishwasher or cleaned and put away. The sink should be clear and clean.
- Clean Air - Keep modest air fresheners in closets, bathrooms. Be especially careful to keep kitchen odours fresh; coffee brewing or a cinnamon coffee cake baking in the oven has a lasting, inviting effect.
- Music, Music, Music - Perhaps you can't have something baking in the oven every time, but soft, pleasant background music may be very effective.
- Air Conditioning - Be sure that the temperature is set to a comfortable level, no matter the season.
- The Bathrooms - Keep a set of fresh, attractive towels in each room that you can change instantly.
- The Entryway - it's the first and last impression that your buyers will have to your home - make it a good one. Check it regularly for sharpness.
Prepare well for your showings. Set the stage to make the best impression on each prospective buyer.
Important Information for Your Listing
There are several documents that you can have ready that will help immensely in the listing process:
- The solicitors reporting letter from the purchase of your home
- Property tax receipts and assessment
- Copies of utility bills, especially heat and hydro
- A list of any recent upgrades to your home
- A copy of a survey if available
- If applicable well and septic records and water tests
- Copy of recent home inspection of applicable
