Decision to Sell
When you decide to sell your home, you’re taking a major step, setting a chain of events into motion, which hopefully will culminate in a successful sale and move-out. It’s critically important that you have a clear idea in mind of why you want to sell your home, along with your expectations, financial considerations, goals, and your post-sale plans. At McKiernan Realty, we counsel potential sellers to hopefully help guide them to make the best decision. As an agent, I am always happy to meet with potential sellers initially as an opportunity to educate them about the market, their home’s potential value and ultimately, give them some insight and perspective so that they can better determine their options. |
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Comparative Market Analysis
In order to best determine the value of your home, it is best to perform a Comparative Market Analysis (CMA). This is done in various steps. Usually the first step is to take a look at your home to make sure we are making a fair comparison; however, the CMA can be done prior to an initial meeting by determining a value range. This is done by analyzing data that can be found in the Multiple Listing Service (MLS). A qualified agent will also know of properties that are on the market or have sold without being part of the MLS. This will give the agent an idea how much your property is worth in the current market. Please note that the CMA is not an appraisal. An appraisal must be performed by a licensed appraiser.
The CMA process takes place before your home is listed for sale. This is a good assessment of what your house could potentially sell for.
CMAs are not only for prospective sellers. Buyers should consider requesting a CMA for properties they are seriously looking at to determine whether the asking price is a true reflection of the current market. Owners who are upgrading or remodeling can benefit from a CMA when it's used to see if the intended changes will "over-improve" their property compared to others in the neighborhood.
Setting the Price
“How much should I ask?” The answer to this question will set the tone for the entire sales process. If you set your value too high, you risk scaring away qualified buyers and realtors from even looking at the house. And the longer the house sits on the market, the more people will start to wonder what’s wrong with it, lowering the perceived value further. Even if someone is willing to buy the house for an inflated price, if the appraisal value falls short of that amount the lender will decline the loan, and your sale may fall through at the last minute. On the other hand, if you lowball your home’s value, you could miss out on thousands of dollars that are rightfully yours.
You must get a thorough market analysis to prevent these issues. A simple price-per-square-foot estimate is not enough. You will need to consider such variables as comparable listings, your home’s special features, neighborhood and local school information, current market conditions, mortgage and loan availability, supply versus demand in your area, price range, and recent sales. After reviewing a Comparative Market Analysis (CMA) to give you a baseline, we can discuss a reasonable price range for your property; at our second meeting we will agree on a listing price.
Developing a Market Strategy
In order to sell your home quickly and on with the best possible terms, it's necessary to prepare your home for the market. This process includes:
Marketing Your Home
Negotiating the Offer
Your Sales Associate will immediately present and explain all offers to you. You will be able to accept, reject, or counter any offer presented. During the negotiation process, your Associate will leverage their experience and skills to advocate your interests:
Throughout the negotiation, your Sales Associate will provide you with a professional, objective point of view; but the final decision of accepting an offer is yours.
Managing the Transaction
You'll appreciate having a strong advocate on your side during the transaction!
After the Offer is Accepted
Once an offer is accepted, your Sales Associate will manage all the details to make the process as stress-free and efficient as possible:
Finalizing and Closing the Transaction
Finalizing the process includes reviewing all closing documents and ensuring both parties have copies. When the transaction has closed, your Sales Associate will deliver the closing check to you and the keys to the new owner.
In order to best determine the value of your home, it is best to perform a Comparative Market Analysis (CMA). This is done in various steps. Usually the first step is to take a look at your home to make sure we are making a fair comparison; however, the CMA can be done prior to an initial meeting by determining a value range. This is done by analyzing data that can be found in the Multiple Listing Service (MLS). A qualified agent will also know of properties that are on the market or have sold without being part of the MLS. This will give the agent an idea how much your property is worth in the current market. Please note that the CMA is not an appraisal. An appraisal must be performed by a licensed appraiser.
The CMA process takes place before your home is listed for sale. This is a good assessment of what your house could potentially sell for.
CMAs are not only for prospective sellers. Buyers should consider requesting a CMA for properties they are seriously looking at to determine whether the asking price is a true reflection of the current market. Owners who are upgrading or remodeling can benefit from a CMA when it's used to see if the intended changes will "over-improve" their property compared to others in the neighborhood.
Setting the Price
“How much should I ask?” The answer to this question will set the tone for the entire sales process. If you set your value too high, you risk scaring away qualified buyers and realtors from even looking at the house. And the longer the house sits on the market, the more people will start to wonder what’s wrong with it, lowering the perceived value further. Even if someone is willing to buy the house for an inflated price, if the appraisal value falls short of that amount the lender will decline the loan, and your sale may fall through at the last minute. On the other hand, if you lowball your home’s value, you could miss out on thousands of dollars that are rightfully yours.
You must get a thorough market analysis to prevent these issues. A simple price-per-square-foot estimate is not enough. You will need to consider such variables as comparable listings, your home’s special features, neighborhood and local school information, current market conditions, mortgage and loan availability, supply versus demand in your area, price range, and recent sales. After reviewing a Comparative Market Analysis (CMA) to give you a baseline, we can discuss a reasonable price range for your property; at our second meeting we will agree on a listing price.
Developing a Market Strategy
In order to sell your home quickly and on with the best possible terms, it's necessary to prepare your home for the market. This process includes:
- Deciding when to put your home on the market.
- Establishing a strategic price based on recent comparable sales, local market conditions and your motivation to sell.
- Estimating probable net proceeds.
- Advising you on how to make your home more appealing to potential buyers.
Marketing Your Home
- Ordering a "FOR SALE" sign to be placed prominently on your property.
- Installing a lock box to make it easy for agents to show your home.
- Submitting your home to the regional Multiple Listing Service for immediate exposure to the real estate community.
- Arranging Sales Associates in the area to tour the home.
- Developing a flyer/brochure highlighting the features and benefits of your home.
- Promoting your home at the appropriate Association(s) of Realtors' for maximum exposure to other cooperating agents.
- Holding open houses when appropriate.
- Contacting your neighbors to promote the property.
- Advertising your property on our regular office schedule meetings.
- Featuring your property on our web site and REALTOR.com.
- Asking clients and colleagues if they know of possible buyers.
Negotiating the Offer
Your Sales Associate will immediately present and explain all offers to you. You will be able to accept, reject, or counter any offer presented. During the negotiation process, your Associate will leverage their experience and skills to advocate your interests:
- Reviewing the contract and obligations before you sign.
- Explaining how contingencies and release clauses work.
- Protecting you from signing a "blank check" for unknown problems or repairs.
- Defining legal disclosure requirements.
- Orchestrate the offer process for "back-up" offers, if necessary.
Throughout the negotiation, your Sales Associate will provide you with a professional, objective point of view; but the final decision of accepting an offer is yours.
Managing the Transaction
You'll appreciate having a strong advocate on your side during the transaction!
After the Offer is Accepted
Once an offer is accepted, your Sales Associate will manage all the details to make the process as stress-free and efficient as possible:
- Staying in contact with the buyer's agent to ensure a smooth escrow.
- Following up on the progress of the buyer's loan.
- Monitoring all contingency removal deadlines.
- Assisting you if a conflict with the buyer arises.
Finalizing and Closing the Transaction
Finalizing the process includes reviewing all closing documents and ensuring both parties have copies. When the transaction has closed, your Sales Associate will deliver the closing check to you and the keys to the new owner.
What your home is worth
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The selling process
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Preparing the home to sell
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