In a challenging real estate market where demand outpaces supply, a person can generally sell a house faster by lowering the price. But there are other ways to enhance a home's attractiveness besides lowering the asking price.
This is part of a continuing series of articles and tips into downsizing and other real estate transition insights by Nick Santoro and Joe Santoro of Personal Property Managers, serving Pennsylvania and New Jersey.
1. Differentiate your home from your neighbors
In order to attract attention and to make your home more interesting vs. your neighbors or your immediate competition, also known as market comps, consider custom designs or additions, such as landscaping, high-grade windows or a new roof when marketing your home for sale. This can help add value to your home. Any improvements should be practical and use colors and designs that will appeal to the widest audience. In addition, they should complement the home and its other amenities, such as building a deck or patio adjacent to an outdoor swimming pool.
However, while it can pay to spice up your home, don't over-improve it. According to a recent survey in Realtor Magazine, some renovations, such as adding a bathroom or putting new shingles on a roof, might not always pay. The data suggests that the nationwide average amount recouped for a bathroom remodel is about 58%. For a new roof, it's even less. If you're going to invest in home improvements, do your research and be sure to put your money into the things that are likely to get you the best return. In addition, if you have added any custom features that you think buyers will be interested in, make sure they are included in the home's listing information. More than ever you should take every small edge you can get.
2. Clean the Clutter
It is imperative to remove all clutter from your home before showing it to potential buyers because buyers need to be able to picture themselves in the space. This might include removing some furniture to make rooms look bigger, and putting away family photographs and personal items. You may even want to hire a stager to help you make better use of the space. Staging costs can range from a couple hundred dollars for a basic consultation to several thousand dollars, particularly if you rent modern, neutral furniture for showing your home. Many people feel that stagers can make a home more salable, so hiring one deserves some consideration.
3. Sweeten the Deal
Another way to make the home and deal more attractive to buyers is to offer things or terms that might sweeten the pot. For example, sellers that offer the buyer a couple of thousand dollars credit toward closing costs (known as a buyers assist), or offer to pay closing costs entirely will in some cases receive more attention from house hunters looking at similar homes.
Another tip is to offer a transferable home warranty, which can cost $400 to $600 for a one-year policy and will cover appliances, such as air conditioners and refrigerators, that fail. Depending on the policy, other appliances and house gadgets may be covered as well. A potential buyer may feel more at ease knowing that he or she will be covered against such problems, which could make your home more attractive than a competing home.
Finally, it's important to note that some buyers are motivated by the option to close in a short amount of time. If it is possible for you to close on the home within 30 to 60 days, this may set your deal apart and get you a contract.
4. Improve Curb Appeal
Sellers often overlook the importance of their home's curb appeal. The first thing a buyer sees is a home's external appearance and the way it fits into the surrounding neighborhood. Try to make certain that the exterior has a fresh coat of paint, and that the bushes and lawn are well manicured. In real estate, appearances mean a lot. What better way to set your home apart than to make it attractive at first glance? Remember that first impressions are lasting impressions.
5. Get Your Home in "Move In" Condition
Aesthetics are important, but it's also important that doors, appliances and electrical and plumbing fixtures be in compliance with current building codes and in working order. Again, the idea is to have the home in move in condition and to give potential buyers the impression that they will be able to move right in and start enjoying their new home, rather than spending time and money fixing it up. Unlike 7 or 8 years ago at the height of the real estate boom, in today’s market, buyers do not want to invest the money that they did years ago. They are looking to move right into home with little to no work that will need to be done due to the lack of home appreciation.
6. Pricing It Right
Regardless of how well you renovate and stage your home, it is still important to price the home appropriately. Consult a local real estate agent, read the newspapers and go to online real estate sites to see what comparable homes are going for in your area. It is the single most important thing that you can do. Today... it’s all about price and aesthetics.
It's not always imperative to be the lowest priced home on the block, particularly when aesthetic and other significant improvements have been made. However, it is important that the listing price is not out of line with other comparable homes in the market. Try to put yourself in the buyer's shoes and then determine what a fair price might be. Have friends, neighbors and real estate professionals tour the home and weigh in as well.
The Bottom Line
Selling a home in a unique real estate market that is just now coming out of a slump requires a little extra work. Do everything you can to get the home in excellent shape and be prepared to make some small concessions at closing. These tips, coupled with an attractive price, will increase the odds of getting your home sold.
For more information on real estate or home downsizing please contact Nick Santoro or Joe Santoro of Personal Property Managers at 215-485-9272 or 908-368-1909. Personal Property Managers specializes in helping home owners transition from their home of many years into a new community. Personal Property Managers services Pennsylvania and New Jersey and offers downsizing services, estate sales services, home staging, discount full service real estate services via its association with EveryHome Realty. Learn more about Personal Property Managers from our recent News Stories.