Prepping Your Home For Top Dollar

How To Get The Best Price When Selling Your Home 

Selling your home can be an exhilarating yet daunting experience. Victoria’s real estate market is known for its breathtaking scenery and prime location which presents fantastic prospects, but selling successfully demands a strategic approach. Steering clear of typical errors is crucial to securing the best deal and a hassle free process. Let’s take a look at some frequent missteps and how to avoid them.

Pricing Your Home

Choosing a pricing strategy should depend on current market conditions, the property’s unique qualities and the seller’s timeline. Both strategies have their risks & rewards. A balanced approach often involves considering nearby comps and recent market trends.

Pros & cons for both overpricing or underpricing a home, framed for different market conditions:

Overpricing a Home for Sale

Hot Market (Seller’s Market)

• Argument For: In a seller's market, with high demand and limited inventory, some sellers price their homes above market value. Buyers may be willing to pay more, fearing they'll miss out on available properties. Overpricing can maximize profits if buyers compete, especially if bidding wars occur.
• Counterargument: Even in a hot market, an overpriced home may deter buyers who recognize the inflated cost. It may sit on the market longer, causing potential buyers to question why it hasn't sold, giving it a "stale" appearance.

Cold Market (Buyer’s Market)

• Argument For: In a cold market, sellers might price higher to leave room for negotiation, aiming to still achieve a good sale price after bargaining. They hope to catch a buyer who sees unique value in the property.
• Counterargument: In a buyer’s market, an overpriced home is likely to be ignored since buyers have more options. They may see the higher price as a red flag, questioning the seller’s seriousness or thinking they may have more bargaining power with other homes.

Balanced Market:

• Argument For: Overpricing might work if the property has unique features or high-end renovations that justify the price. Sellers can test the market and reduce the price later if needed.
• Counterargument: Buyers are more cautious and research-savvy in balanced markets. Overpricing can still deter them, as they may prefer a fair deal without the hassle of negotiations.

Underpricing a Home for Sale

Hot Market (Seller’s Market):

• Argument For: Underpricing can create a competitive frenzy, driving multiple offers and potentially leading to a bidding war that pushes the final sale price above the original market value.
• Counterargument: If the bidding doesn’t reach the anticipated level, the seller might lose money by selling below market value. Also, some buyers may wonder if something is wrong with the property if the price is too low.

Cold Market (Buyer’s Market):

• Argument For: Underpricing can attract more interest and draw in buyers who may not have considered the home. It could lead to a quicker sale in a slow market and bring in offers that the seller can evaluate without too much delay.
• Counterargument: Buyers might interpret a low price as a signal of desperation or underlying issues. It could lead to lower offers overall, with buyers expecting additional discounts due to the weak market.

Balanced Market:

• Argument For: In a balanced market, underpricing can generate immediate interest, helping the property stand out and potentially leading to a quick sale. It might be an effective strategy if the seller needs to sell quickly.
• Counterargument: If other homes are fairly priced, underpricing might yield lower returns than the seller could otherwise get. The market is less likely to see dramatic overbidding, which could result in a sale price closer to or even below market value.

Making Necessary Repairs

When selling a home, deciding whether to invest in repairs can be challenging, especially if the property’s primary value lies in the land rather than the structure. Overall the choice largely depends on the local market and the extent of repairs needed.

Here are the pros and cons of neglecting necessary repairs:

Pros 

1. Saves Time and Money

   • Lower Investment: If the home is likely to be torn down or significantly remodeled, spending on repairs could be wasted if buyers are primarily interested in the land.
   • Faster Sale Process: Avoiding repairs speeds up the listing process, as you won’t be waiting on contractors or spending time managing renovations.

2. Appeals to Certain Buyer Types

   • Developers and Investors: Buyers looking to build or remodel may prefer a “blank slate” and would rather acquire the property at a lower price than pay for repairs they don’t need.
   • Fixer-Upper Enthusiasts: Some buyers see the potential for renovations as an opportunity to add value on their terms, especially if they have the budget and vision for a remodel or teardown.

3. Avoids Over-Improvement

   • Unnecessary Upgrades: If buyers value the land, they may not value home repairs, which can limit your ability to recoup repair costs. The property may sell for similar offers whether repairs are made or not.

Cons

1. Lower Initial Offers

   • Decreased Value: A home with visible repairs needed will likely attract lower offers, as buyers factor in the cost and effort required to fix issues.
   • Bargaining Leverage: Buyers may expect a discount or use repair issues as leverage to negotiate a lower price.

2. Limited Buyer Pool

   • Turned-Off Buyers: Some buyers are uncomfortable taking on repairs and may bypass properties that require work, even if they’re mainly interested in the land.
   • Mortgage and Appraisal Issues: If repairs are structural or related to essential systems (roof, plumbing, foundation), some lenders may hesitate to finance the purchase, potentially narrowing your pool of buyers.

3. Disclosure Requirements

   • Transparency Obligations: If issues are known, you may be legally required to disclose them, which can reduce the home’s perceived value or make potential buyers wary, especially if repairs are extensive or costly.

4. Risk of Further Deterioration

   • Safety and Liability: Unattended repairs, particularly for structural or safety-related issues, can worsen over time, potentially becoming safety hazards or leading to further deterioration, which may affect the property’s insurability and salability.

Factors to Consider When the Land Holds the Value

• Market Demand: In areas with high demand for land or new builds, buyers are often more interested in the lot size, location, and potential than the existing structure, making repairs less essential.
• Repair Costs vs. Land Value: If repair costs are high relative to the land’s value, it may make sense to sell “as-is.” However, minor, inexpensive repairs or improvements that enhance curb appeal (like lawn care or cleaning) can still be worthwhile.
• Transparency in Marketing: Selling a property for its land value is common in certain areas, and listing it as a “tear-down” or “redevelopment opportunity” can set accurate buyer expectations, helping you avoid unnecessary repairs.

Staging - is it necessary?

Staging a home for sale, whether with a professional stager or by using a designer who works with the existing furniture, can significantly impact buyer perception and help the home sell faster and for a better price. Here’s why staging is crucial:

Enhanced First Impressions

• Professional Stager: They bring in curated furniture and decor that align with current design trends, helping the home appeal to the broadest audience possible.
• Using Existing Furniture: A designer can work with what’s already there to create a more inviting layout, highlight the home’s best features, and improve flow, all while maintaining a personal touch.

 
Helps Buyers Visualize the Space

• Professional Stager: By creating a polished and cohesive look, staging can transform a space, making it easier for buyers to imagine themselves living there.
• Existing Furniture: Designers can rearrange or add pieces to maximize room potential, making spaces look bigger, more functional, and more inviting without drastically altering the current setup.

 
Maximizes Appeal in Online Listings

• Professional Stager: A fully staged home with fresh furniture often photographs better, capturing attention on listing sites where first impressions matter.
• Existing Furniture: A designer can remove clutter and arrange rooms attractively for photos, which helps the property stand out online, even with the owner’s current pieces.

 Highlights Key Selling Points

• Professional Stager: They can choose furniture sizes, colors, and styles that bring out each room’s best features, like accentuating high ceilings or making an open floor plan more cohesive.
• Existing Furniture: By decluttering and reorienting pieces, a designer can still draw attention to focal points like fireplaces, large windows, or unique architectural details without the need for new furnishings.

 
Reduces Perceived Flaws

• Professional Stager: Strategically chosen decor can downplay less desirable aspects of the home, like small bedrooms or awkward layouts.
• Existing Furniture: A designer can help make simple changes (like rethinking the layout or color palette) to improve spaces and minimize noticeable flaws in a more cost-effective way.

 
Increases Sale Price & Decreases Time on Market

• Professional Stager: Statistics show staged homes often sell faster and at a higher price because they feel move-in ready and more desirable to a wider audience.
• Existing Furniture: With fewer changes and costs, homeowners can achieve many of the same benefits, as a well-styled home is still more likely to resonate with buyers, increasing perceived value.

In both cases, staging is a powerful tool that can provide an edge in the real estate market by making a home look its best and allowing buyers to connect with the space on an emotional level.

Letting Go of the Family Home

Letting go of a family home can be an emotional journey, but there are steps you can take to ease the process and help yourself move forward.

Reflect on Why You’re Selling: Focus on the reasons behind the sale—whether it’s a new opportunity, a step toward financial goals, or a lifestyle change. This helps shift the perspective from loss to one of growth and positive change

Begin the Process of Letting Go Early:  Start by gradually packing sentimental items or things that give the home a “lived-in” feel. By depersonalizing the space, you begin the mental transition from seeing it as “home” to viewing it as an asset for sale.

Create New Memories:  If you’re selling due to an exciting new chapter, such as relocating to a dream city or upgrading to a bigger space, take some time to visualize and plan for that future. Focusing on the possibilities can help ease the sense of loss.

Acknowledge the Emotions: Allow yourself to feel any sadness or nostalgia that comes up. Writing down memories of your time in the home or sharing them with loved ones can provide a healthy way to process emotions.

Take Photos and Memorabilia: If there are specific rooms or spaces that mean a lot, take photos and consider creating a small album to look back on. This keeps the memories accessible and allows you to move forward more freely.

Stage and Declutter with the Buyer in Mind: Focus on preparing the home in a way that appeals to buyers. Shifting your mindset to view the home as a product or asset rather than a personal space can help you begin to emotionally detach.

Celebrate the Time You Had There: Reflect on the home as a chapter in your life and recognize that the memories don’t leave with the house. It can be helpful to celebrate the time spent there, perhaps with a small gathering or family meal, marking the transition in a positive way.

Envision the Next Owners’ Joy: Consider that the home will soon be filled with new experiences for others. Thinking about the home bringing happiness to a new family or owner can make it easier to let go.

Keep a Positive Mindset: Focus on the benefits of the sale—whether that’s financial gain, lifestyle change, or a new adventure. Try to keep these positives in mind during the more challenging moments of letting go.

Letting go of a home is never easy, but these steps can help you make peace with the process, allowing you to move forward with a sense of accomplishment and optimism.

Call me anytime you have any questions or would like to get a market evaluation of your home for estate planning or refinancing. 

I am always happy to help!