My New Blog

Let’s face it. Buying or selling a home is an emotional driven decision and transaction. It just is. As consumers we all want the most for the least, the best deal or best value we can get for our dollar. And that will always be an underlying factor in the decision process. But it is not the driving force in our motivation to buy or to sell a home. Buyers seek and purchase a home because they need shelter that satisfies their needs, wants and desires. That is an emotional based decision. Sellers make a decision to sell because they there is a need to make a change in their current situation- a job change, relocation, financial situations (positive or negative), family situations (new additions or children leaving the nest) and desire for something different. Again these are emotional driven decisions.

As an agent who works with both buyers and sellers, I see this every day. One of the hardest tasks I face as a Broker and agent for my selling clients is to move them mentally past the emotional relationships to their home and truly understand and embrace the reality of listing and selling their home. The fact that the current market conditions and realities that exist within their present market place can sometimes be a major roadblock. As consumers, we all read the newspapers, watch the news on Television, or pick up countless amounts of information on the internet. We know the realties but we just don’t want to accept the fact that it applies to our home. I too can appreciate this as a home owner. After all we raise our children in these homes, have countless memories , have put our own time energy and money and most of the time our sweat and backs into these homes and making them nice with various home upgrading projects. We are emotionally attached to the property.

The truth is sometimes I have to tell my clients what they do not like or want to hear. The home is not presently worth what they want or think it should be. But as a licensed broker I am bound to certain duties of Fidelity, Integrity and Competency which means looking out for my clients best interest at all times and that means telling the truth and giving facts as they exist. So here’s one of those truths- Current Market Value (CMV)does not always mean Fair Market Value (FMV)or Intrinsic Market Value(IMV). CMV means simply what value the home will bring in the current market place given present demand, supply, and economic conditions. Simply put, what buyers are willing to pay for the home today. FMV or IMV means the value a home SHOULD bring in a normal market with normal conditions and normal equilibrium with no external or undue pressures on the buyer or seller. By definition these values may and usually are never exactly the same because marketplaces are rarely in perfect equilibrium.

So here in closing are 6 points that I believe Sellers should fully understand and or undertake in the preparation of selling their home:

1. Realize upfront when purchasing a home that timing is everything. Homes will fluctuate in value over time given varying market conditions. You cannot control the economics of the situation and none of us have a crystal ball to know the exact or perfect timing in our lives to buy or sell. Again, it is driven by emotion and usually a motivated need.

2. Know and understand the current market economics before you market the home for sale. This will eliminate or least minimize the shock or disappointment factor upfront so that you are past the emotional aspect and deal with the sale of the home in a business manner. After all, the goal is to get the home sold and move on with the next chapter in your life.

3. Know your competition. Look at the current competition on your street, your block, your neighborhood and your area. Visit the homes and remember to “check your emotions at the door”. Preview the homes without blind eyes and be honest with yourselves as to how they compare with your home- location, sq. footage, asking price, floor plan description, design, features, finishout and overall condition. MORE IMPORTANTLY, if at all possible, visit the homes that have just recently sold in the same area. Sometimes they may not yet be occupied or they may have new homeowners who are willing to permit you to preview the property. Just explain that you live within the neighborhood and are considering selling your home and would like to see their home as a comparison. Usually they are cooperative. Hiring a real estate professional will help you in this endeavor as well.

4. Realize the true value of a Real Estate Professional. This will greatly aid you in achieving point number 2. I emphasize the term “Professional”. Find a Real Estate Broker or agent who truly is competent and knows their business. One who can/will give you a true perspective on current market conditions and the value of your home. Not one who is just chasing business. Remember in selling the home, timing is everything. Time is money. A Real Estate Professional knows how to market and has access to a vast amount of resources to maximize the exposure of the home. Statistics clearly show a professional Realtor will achieve the sale more quickly than trying to sell the home yourself.

5. Put you best foot forward. Make sure your home is “Show Ready” before you ever put it on the market. You only have one shot to truly make a great impression. Get rid of clutter. Less is always better. Use fresh paint. Make the minor repairs and give it a detailed cleaning. Make sure the home’s exterior and yard is looking great. A home starts selling at the curb not inside the front door.

6. Be honest with yourself about the current value of the home. Remember the greatest opportunity to maximize your price objective is within the first 60 days the home is on the market. After that the value decreases the longer it sits. Establish what is the true current market value based on the current market conditions, your specific situation and your competition then market aggressively around that price. Don’t be greedy. Be smart. A quicker sale goes a long way in healing the pain of less money.

Stephen McClain is a licensed Broker and owner of Cornerstone New Home Solutions serving the greater Austin, TX metro and surrounding area. He is also a certified instructor for the Texas Real Estate Commission under contract with Champions School of Real Estate. For more information you may contact Stephen at smcclain@cornerstonenewhomesolutions.com.