GMAC Real Estate Selling Articles: Six Critical Elements of a Sale
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Six Critical Elements of a Sale

Takeaways

  • Understanding basic real estate knowledge will help you during the selling process.
  • Your GMAC Agent will complete a Home Market Analysis to list your house at a price to maximize your return.
  • Make repairs and touch-ups before your house goes on the market.
  • Market conditions are out of your control and strongly affect the sale of your home - let your GMAC Agent respond to these issues.
  • Good marketing leads to a higher selling price.

Did you know?

  • Contract terms can be deal makers or deal breakers.
These steps lead to a satisfied home seller. While your Real Estate Agent will handle the details and legwork of the home selling process, you may find it helpful to review the Six Critical Elements of a Sale. Arming yourself with basic real estate knowledge will be helpful as you move through the selling process.

1. Determining the List Price

Before you set an asking price (or list price) for your home, your Real Estate Agent will complete a Home Market Analysis. Your agent is trained to determine the most appropriate sales price for your home by working with you in evaluating several factors. When setting a realistic fair market value of your home, you'll want to consider the following:
  • Don't base your asking price simply on what you paid for the home. You may be asking too little or too much.
  • Determine how much time you have in which to sell your home. If you must sell quickly, your sales professional may suggest a more competitive price or offer more favorable terms.
  • In order to judge your competition, your Real Estate Agent will provide you with recent sales of comparable homes in your area, as well as homes currently available in your price range.
  • Don't take a chance by pricing your home too high! It will just make your competition look better. You will lose a large pool of eligible buyers who may not even look at your home because it's out of their price range.
  • Consider marketplace trends. Your agent will be an excellent resource in this matter.

After evaluating these areas, your Real Estate Agent will assist you in establishing a realistic and ambitious listing price. Once you've set the price for your home, your Real Estate Agent will customize a sales and marketing program that will target exposure to a large segment of potential buyers.

2. Property Location

Another very important factor in selling your home is location. You've heard the cliché a thousand times; "location, location, location." However trite it may have become, the location of your home truly is a big factor when selling. Buyers may consider any or all of the following when determining where they want to purchase a home:

  • Proximity to area schools
  • Proximity to area amenities including hospitals and shopping centers
  • Proximity to expressways and public transportation
  • Street traffic/neighborhood noise
  • Property tax expense

3. Property Condition

Buyers consider the structural and mechanical integrity of your home as well as the upkeep and cosmetic appeal. Before listing your home, make sure it is in good condition from top to bottom. Anything that is in disrepair will show up on a home inspection and, depending on the severity, could quite possibly affect the sale of your home.

In addition to getting your house in tiptop shape, you want to do the same with your lot. Your lawn doesn't have to be as perfect as a putting green, but it should appear healthy, well maintained and nicely manicured.

Your Real Estate Agent will counsel you on what you can do to maximize the value of your home, making it even more appealing to buyers.

4. Market Conditions

Market conditions play a major role in the sale of your home. Influential factors include:
  • Interest rates
  • Competition from other properties
  • The economy
  • Consumer confidence
  • Weather

These factors are beyond our control; therefore your Real Estate Agent will respond to these conditions with the appropriate marketing and price considerations.

You've probably heard the term "seller's market." In a seller's market (also referred to as a "hot" market), homes sell quickly. Often in a seller's market, there are fewer homes on the market, meaning less competition. This also means you have a better chance of receiving your asking price, and in fact, you may even be offered more.

On other side of the coin, in a "buyer's market" (also referred to as a "flat" or "cold" market), sales lessen, more homes are available, and buyers often find great deals on houses. If a seller is motivated (perhaps he is paying the mortgage on both the home he is selling and a new home), the selling price may be reduced, resulting in a bargain for the buyer.

5. Contract Terms

In real estate, the terms of the sale can make or break a contract. House sale contingencies, closing dates and exclusions of accessories or fixtures should always be handled up front, in order to avoid any confusion that could affect the sale. This is another area where your Premier Service Real Estate Agent will make your life easier. Your agent will handle the necessary details of drawing up the contract and confirming facts, figures and details.

Essential terms found on a real estate contract include the following:

  • Names of the buyer(s) and seller(s)
  • Property description
  • The good faith earnest money deposit
  • Purchase price and exact terms of sale
  • Personal property to be included in home sale (i.e. refrigerator)
  • Amount of time acceptable for purchase offer
  • Professional inspection
  • Seller's disclosure of known defects

6. Marketing

When marketing and advertising are done correctly, your home will sell more quickly and command a higher price. Every property is unique, and therefore your GMAC Premier Service Real Estate Agent will design a marketing plan to target the segment of buyers who would be most interested in your home.

You're probably familiar with many real estate marketing tactics. Soon after listing your home with a Real Estate Agent, a For Sale sign is placed in your front yard, and ads are placed in the local newspaper and real estate magazines. Your agent may hold an open house to allow interested parties to tour your home and ask questions. Your house will also be displayed on the Internet.

Beyond this "surface" marketing, your Real Estate Agent is working behind the scenes to sell your home. This includes marketing your home to other real estate agents, in addition to home buyers.

Contact a GMAC Real Estate Agent Today

If you are thinking of selling a home, or want to talk with an expert Real Estate Agent, please work with a GMAC Real Estate Agent. An agent at one of our local offices will be glad to talk with you, and help you in all of your Real Estate needs.