Timing, Timing, Timing

The value and marketability of your home is no longer just based on that old real estate axiom, “location, location, location.” It’s now all about “timing, timing, timing” - that is, the market conditions you find yourself entering today. For a whole host of reasons, particularly the economy and foreclosure market, today you will most likely find yourself in a Buyers’ Market – with more sellers than buyers resulting in declining home values.

Your List Price

If your home sells it will sell at a price that reflects the current market conditions in your community and price range – not the market that existed sometime in the past. If you list your home at a supportable, competitive price, the odds are very high that your first offer will be your best offer and it will occur within several weeks of listing your home for sale. After that, the odds of sale at our near your first list price rapidly diminish.

By definition, we are clearly in a Buyer’s Market in virtually every housing market in the country. However, there are indications that the extent to which this exists are greatly inflated by the number of houses that are currently listed well above the price that they will ultimately sell for. To take advantage of this “False Buyers Market,” pricing your home properly is crucial. With the right market data and analysis you should set the listing price for you home that will attract the interest of local real estate agents and the buyers they represent.

Forget the Gimmicks

Since man first sought shelter in caves, each unique human being has a unique “shelter comfort zone.” No gimmicks – even a free Mercedes – are going to convince buyers to buy your home if they are just not comfortable with its setting, style, layout and overall “feel.” Shelter is one of the most fundamental and unique of all basic needs. So, forget the gimmicks and focus on getting your property into the best condition possible and pricing it properly. Those are the actions that will result in the quickest sale at the highest price possible.

This is the most important, and toughest, decision you’ll have to make – setting the initial list price. Take your time and consider all of the following before making this key decision.

First Offer = Best Offer

What most home sellers don’t appreciate is that the very best opportunity to get the highest possible price is in the very early stages of marketing the home.  Here’s why: According to a recent survey by the National Association of Realtors, the average buyer searched for seven weeks and inspected ten homes before finding the home they ultimately purchased.  Consider this:if there were 10 new buyers entering the market each week looking for homes in your price range and community, then the day your home went on the market, there would be a pool of 70 potential buyers who would consider your home; lots of competition for “fresh merchandise.”  You get one shot at this pool, and this is invariably the best time to get the highest possible price for the least marketing time, effort and cost. And that’s also why your first offer will probably be your best offer.

Getting Your Home Ready for Showings

Showing your home is a pivotal point in the selling process, so it’s vital that you prepare, or stage, your home to create the best first impression possible. When evaluating the condition of your home, always think of it from the buyer’s point of view, not yours. The goal is simple but important – help buyers see everything your HOUSE and YARD have to offer, and take the focus away from your personal items.

When you stage your home, you should be packing and storing many of your belongings that you don’t need on a daily basis; this will greatly increase the feeling of space in your home, and since many people move because they need “more space”, it’s a win-win for everyone.

It’s vital that you create the best first impression possible when your home is on the market.  An important point to remember is that you actually have to sell your home 3 times: 1) to the buyer; 2) to the home inspector; and 3) to the bank appraiser.

It’s a fact that in most cases, homes will sell more easily if they are furnished and occupied.  There’s just no substitute for that warm, lived-in feeling when selling a home.  Many buyers have difficulty visualizing what a vacant home will look like when furnished.  That’s why many builders furnish a model home.

When evaluating the condition of your home, always think of it from the buyer’s point of view, not yours.  Real estate professionals know, from long experience, that it’s not usually one little thing that turns off prospective buyers.  It’s most often an accumulation of many little things that add up to a low offer or a lost sale.

There are economic events in each of six distinct geographic markets that can impact the value and marketability of homes, either positively or negatively. Consider: national recession or expansion; regional unemployment rate and trends, a depressed metropolitan area dependent on one industry, a major employer leaving a suburban market; big tax increases in a community; a new waste disposal plant in a neighborhood. The list is endless – and always dynamic.

Ultimately it all comes down to supply and demand – are there more sellers than buyers?

Home sellers are perhaps the biggest single group of “wishful thinkers” in the world. Whereas buyers buy based on logic, sellers invariably price their homes based on emotion. This almost always results in overpricing and scaring away potential buyers, resulting in a long, drawn out marketing period with many price reductions. Ultimately the home sells for a price far below the price that could have been achieved initially at a competitive price when the home was “new merchandise” on the home inventory shelf.

The Fair Housing Law declares that it is ILLEGAL TO DISCRIMINATE on the basis of Race, Color, Religious Creed, National Origin, Sex, Sexual Orientation, Age, Children, Ancestry, Marital Status, Veteran History, Public Assistance Recipiency, or Handicap (Mental or Physical).

It is unlawful practice for owners, lessees, sub-lessees, licensed real estate brokers, assignees, managing agents, or unit owners to refuse (on the basis of membership in one or more of the above groups) the:

By law, Massachusetts requires that buildings or structures occupied in whole or in part for residential purpose must, upon the sale or transfer of such building or structure, be equipped by the seller with approved smoke detectors. The local fire departments enforce the provisions of this law.

If you’re selling your home you need to contact your local fire department to discuss the specific regulations for your community, the fee you will pay, and to schedule an inspection.

“Nicole’s Law” requires carbon monoxide detectors in any residence that contains fossil-fuel burning equipment (furnace, boiler, water heater, fireplace or other device), or that has an attached garage.

As with the smoke detector requirement, this law is enforced by the local fire department during its inspection prior to the sale or transfer of your property.

The Massachusetts Lead Paint Law states that sellers who own a home built before 1978 are responsible for removing all lead paint within their property up to a height of 5 feet from the floor, and for removing any such peeling plaster or paint no matter how far away from floor level if the premises are occupied by children younger than six years of age.

The homeowner’s legal obligation exists regardless of the homeowner’s knowledge of the presence of lead paint, and there can be strict liabilities for damages to a child age six or under incurred by ingestion of lead paint on the property.

If your house has a private sewage disposal system, you’ll need Title V Certification before you can transfer title. Regulations established by The Massachusetts Department of Environmental Protection (DEP) mandate that before a house can be sold, the owner must be able to prove that the septic system is functioning properly and in accordance with state guidelines for the protection of public health, safety, welfare, and the environment.

Having a clear understanding of these subjects will help sellers and buyers avoid potential problems during the negotiating phase and even after title is transferred.

If you are selling a condominium you will be required to provide the following prior to closing:

6-D Certificate - The 6-D certificate can be obtained from your condominium association or property management company. The 6-D certificate is required under Massachusetts General Laws Chapter 183A when selling a condominium, and states that there are no unpaid condominium fees, special assessments, or other charges relating to your unit.

When your property is under agreement you need to start preparing immediately for the closing. There’s a lot for you to do between the sale date and the closing date in order to expedite the transaction and prevent delays and/or extra cost to you.

Many home sellers don’t realize that there still remains much to do after the Purchase & Sale (P & S) Agreement has been signed. In fact, most real estate and legal practitioners know that much can transpire between the time of the P & S and the transfer of title that can kill the transaction or put it in serious jeopardy if not attended to in a timely and professional manner.