Important Selling Points
There are many misconceptions about effectively marketing and selling homes, many agents who "cut their teeth" during the high times of 2003-2007 just don't get it. Several years ago, a listing with a reasonable price just needed to be posted on the MLS and it sold. Those days are over for the time being, and you need an agent with a machine design to get your home's maximum exposure to the broadest segment of the market. At Phil Sharp Homes we have such a machine...and we provide customized marketing plans to get the job done. Here are a few points to consider when trying to appeal to buyers.
BUYER'S INTEREST IN AVAILABLE LISTINGS
INTEREST IN SUITABLE PROPERTIES BASED ON SELLER'S ASKING PRICE COMPARED TO BUYER'S PERCEPTION OF VALUE
ASKING PRICE LEVEL OF BUYER'S APPROXIMATE % OF INTEREST ACTIONS VALUE
OVER 120% NONE WON'T EVEN PAUSE IN MLS PRE-SEARCH
UP TO 120% LOW WILL PAUSE IN MLS SEARCH BUT WON'T VISIT
UP TO 115% POSSIBLE WILL PROBABLY DRIVE BY
UP TO 110% GOOD WILL PROBABLY LOOK INSIDE
UP TO 105% STRONG WILL PROBABLY MAKE OFFER
LESS THAN 100% SUPERIOR WILL ACTIVELY COMPETE TO BEAT OTHER OFFERS
The Seller's asking price determines how much interest the buyers will show in their property. Advertising and other promotional efforts may cause the buyers to investigate a listing but won't generate offers to purchase unless the prospective buyers believe the seller's asking price is close to the actual value.
Is Your Buyer Qualified?
Unless the buyer who makes an offer on your home has the resources to qualify for a mortgage, you may not really have a sale. If possible, try to determine a buyer’s financial status before signing the contract. Ask the following:
1. Has the buyer been pre-qualified or pre-approved (even better) for a mortgage? Such buyers will be in a much better position to obtain a mortgage promptly.
2. Does the buyer have enough money to make a down payment and cover closing costs? Ideally, a buyer should have 20 percent of the home’s price as a down payment and between 2 and 7 percent of the price to cover closing costs.
3. Is the buyer’s income sufficient to afford your home? Ideally, buyers should spend no more than 28 percent of total income to cover PITI (principal, interest, taxes, and insurance).
4. Does your buyer have good credit? Ask if he or she has reviewed and corrected a credit report.
5. Does the buyer have too much debt? If a buyer owes a great deal on car payments, credit cards, etc., he or she may not qualify for a mortgage.
If you NEED a PLAN, contact Phil for a free home evaluation and a customized listing and marketing plan that will get your home sold as quickly as possible and for the highest price.