There are 3 factors that traditionally have affected the sale of a property—location, condition and price.

You have all heard “location, location, location” as the 3 “hallmarks” of real estate.

The current real estate market now dictates—

price, price, location!

The importance of price cannot be over emphasized. Price has become the dominant factor. You can not change the location but you can change the condition and appearance of the property by using the services of a professional home stager, your realtors input and getting the property as organized as possible. My fellow panelist, Anne West, of Re design doctor will give us examples of successful staging projects and lots of good ideas.

I will address the importance of Power Pricing. Let’s talk about selling a property first—

These are some easy steps to follow when you consider or decide to sell your property.

1. Call your Realtor or if you don’t have a Realtor call a friend or family member whose opinion you trust and ask for a recommendation. Ask for references from whomever you choose if you wish.
2. It is advisable to use the real estate company with the largest market share. It is also advisable to work with an experienced agent.
3. Carefully review and consider the comparable market home analysis that your agent will go over with you. Cover active listings, pending listings waiting to close and recently closed properties as they best compare to your  property. Remember that active listings are most important since they are in fact your competition.
4. Ask your agent for suggestions about updates and improvements to help your home sell more quickly. Use  a professional home stager to realize your home’s best $$$ potential. I recommend my fellow panelist, Anne West of Redesign Doctor. Anne is experienced and cost aware with all her suggestions. She suggests and spends as if it is her own.
5. Be sure you have all the updating and any changes done BEFORE you go on the market. Ask your Realtor about the upgrades and updates that attract today’s buyers. You will want your best foot forward.
6. Don’t forget about your home’s curb appeal. First impressions are important and lasting.
7. Be sure your Realtor has TOP internet exposure with multiple sites. Over 89% of the real estate sales start with the internet.
8. Be sure your Realtor has their own active website as a source for buyer information.
9. Be sure your home has it’s own website and there is a rider sign on your for sale sign identifying your home’s web address.
10. Be sure you have floor plans to include in the home’s brochure and flyers. Buyers like to know their furnishings will fit in a room. This will help set your home apart from its competition. The floor plan should also be included in your home’s website and as many internet sites as possible.
11. Be sure professional photos are used for all your homes marketing. There should be as many photos as allowed on the internet sites such as Realtor.com. Your home’s own website should have many photos including spring/summer photos if it is fall/winter marketing time or the opposite as appropriate.
12. Have all pertinent documents available to be included in the preparation of the  marketing ie: survey, copy of your tax bill, out of season photos for brochures etc.
13. Be sure you make your home available for all showings. Set available times with your agent –example- no showings before 9 am on weekends or after 8 pm in the evenings unless it is a second showing
14. Make sure you are reachable to verify all appointment requests or set the confirmation/showing requests with your agent.
15. Try, and really try,  not to be home during any appointment. It can make a buyer uncomfortable.
16. Be sure you have all your door locks easy to open. It is awkward to have clients waiting in rain, wind or snow while an agent has to “fiddle” with a bad lock.
17. You, your agent and your property type will help determine what type of lock box, accompanied showing or key arrangement works best.
18. Decide the necessity of public open houses for your property type and location.
19. Plan on an agent open house the first week the home is listed.
20. Be sure your home’s web site, brochures, first post cards and flyers are ready before you enter the active market. It’s the “best foot forward” approach.
21. Review your marketing plan with your agent before you enter the active MLS market . A good “game plan” with your agent will make things go more smoothly.
22. Use a Home Warranty Plan from AHS to cover you as a seller during the listing period until closing and your buyer for 1 year after the closing. It is a very successful marketing tool. The AHS plan is very comprehensive and offers a level of comfort for both sides.
23. Don’t hesitate to ask any questions about the process of selling. Set up a weekly agreed upon “check in time” with your agent for any questions or feedback information. Let your agent know how and what time of day you would like to be contacted—email, phone (cell, home or work) or snail mail.
24. We recommend the services of a Real Estate Attorney. Your agent will have a list of those who are active practitioners available for your convenience if you do not have one.
25. Inspections can yield issues. Remember work with your agent and Attorney to sort out any issues. An inspection should not be a discount coupon.
26. An experienced mortgage broker can interpret what the buyer’s mortgage clause means in the contract. Again, your agent can give you a list of mortgage brokers. I highly recommend my fellow panelist Betsy Hanrahan, a VP of PHH mortgages one of the country’s largest and most reliable companies. Betsy is very experienced and makes herself available for her clients.

The MOST IMPORTANT ELEMENT OF SELLING ANY PROPERTY IS

PRICE!

So, on to THE most important element of selling a home—particularly in this challenging real estate market–

PRICE will always have the biggest impact on a sale. It is the most controllable element. I suggest you carefully review with your Realtor the active listings that will be your competition.  Cross reference the room count, condition and location as it compares to your home. Whether you are selling a condo, townhome or single family property there will no doubt be competition. Make your property stand out as the best VALUE by its Power Price Position.

The number of suburban sales is down by approximately from the same time last year. The city of Chicago, according to recent article in Crain’s, was down 40.1%. Much of the Chicago suburban market, including my north shore market, is reliant upon the move ups from the city. It can represent as much as 30-40% of a town’s sales. It is possibly the biggest single source of buyers. This is one of the strongest reasons to Power Price Position your property to capture those city move ups. These buyers will be able to discern your property as the best VALUE in its price position.

Price your home in a Power Price Position for the market. It will guarantee you more activity in the most important time of the marketing—the first 3-4 weeks of a listing. I recommend  pricing a property from 5 to 10% under its closest competition. This could result in multiple offers and that usually results in selling close to listing price or better.

Remember to LEAD THE MARKET with an aggressive price!  Why  follow or trail behind and end up lingering on the market ? You will become a “ stale” property. Your property is “fresh” for the first 3-4 weeks. You could totally miss the buyer by being in the wrong market price position. For example –if you price your property at 550,000 and would expect it to sell in the mid 4s you could miss that mid 4 ready to buy person. It is true that some buyers search considerably out of their affordable range. They are time wasters and often make very low offers on properties that have lingered on the market.  An active and serious buyer will buy when they perceive the VALUE. It is hard to resist a real VALUE.

A home is your largest asset, your biggest financial investment commodity and probably the center of your life.  Presenting your home in its best light in a Power Price Position and having it professionally staged will help your property to sell in a timely and smooth manner.

Remember these basics when selling a property:

* Work closely with an experienced Realtor to help guide you from start to finish

* Stage it with a professional stager to present it in its best light

* Price it very aggressively—below it’s closest competition—a Power Price Position in the market to lead your competition and stand out as the best VALUE available

As said in the beginning—we have heard location, location, location….now the rule is  price, price, location. I have told many potential sellers that in today’s real estate market ..if they want to sell they need to be at a “need to sell” price. Don’t think you can always negotiate the ambitious price or just try a certain price and lower it later. That will not work! An overpriced property will leave its owner negotiating with no one but themselves. Buyers look for short comings and faults more aggressively with overpriced homes. Any lowering in price may not put the property in a strong Power Price Position SOON enough!  You will certainly be playing to an empty audience. Why not Power Price Position and lead your market position with the best VALUE available ? The answer is obvious!

The best strategy to use in the current challenging real estate market is the aggressive listing price.  There is no doubt that Power Price Positioning and professional staging will help your property sell faster.

Maureen Spriggs
www.northshorehomestore.com
847-441-1028
maureen.spriggs@cbexchange.com