Between the complexities of the real estate market and the changeable landscape of financing and property value, your clients likely have an abundance of questions regarding the sale of their homes. We took a poll of some sellers and found the following questions to be the most frequent. We’ve also re-capped some common answers from our network of real estate experts.
Q: “What are methods to determine the value of my home?”
A: There are two common ways to determine the value of a home:
- An appraisal: A formal, more specific evaluation that determines the market value of a property by considering factors such as what other properties are selling for (recent sales), what would be the cost to replace the property today, how much it takes to operate the property and to keep it in repair, what rental income the property may earn and other applicable factors that affect its value.
- A Comparative Market Analysis (CMA): An informal evaluation that determines the market value of a property by comparing it to similar properties in the same area.
Q: “What factors can influence the value of my home?”
A: There are a number of factors that can affect the market value of a property, ranging from home improvements to the mood of the seller. As a real estate professional, it is your job to sell your client’s home for the highest possible price. This means you must carefully consider any factors that may affect the value of the home. Some of these include:
- Physical attributes such as lot size, square footage, and condition of your home
- Desirability factors, including location, special amenities, and property attributes
- Current real estate market conditions
- Selling and listing price of comparable homes in the area
Q: “What are the dangers of overpricing my home?”
A: Overpricing a home is one of the main reasons why a home does not sell. Buyers don’t want to spend more money on a property than they have to, which means your clients’ home could sit on the market for a long time, its chance of sale decreasing as time progresses. The dangers of overpricing are abundant, some of which include:
- Fewer buyers are attracted and fewer offers are received
- Marketing efforts are neutralized
- The property attracts ‘lookers’ rather than legitimate buyers
- The property may eventually sell below market value
Q: “How do I negotiate the selling price of my home?”
A: Perhaps the most complex moment in the sales process comes when your client receives an offer on their home. Ideally, the potential buyers will offer your client the full price of the home. However, the reality is that not every offer will be immediately acceptable, which means you and your client must negotiate the price with the buyer. There are numerous negotiation tactics, some of which include:
- Being knowledgeable of market trends
- Explaining how you determined the asking price
- Keeping your cool when you receive a lowball offer
- Always making a counteroffer
Q: “What are the costs involved in selling my property?”
A: The costs involved in selling a client’s home may vary depending on the type of property and sales negotiations. As a real estate professional, you can provide your client with an estimated closing statement to give them an idea about the costs they may incur as a result of the sale. Examples of costs include:
- Appraisal fees
- Home inspection fees
- Escrow fees
- Lenders fees
Q: “How will you attract buyers to my property?”
A: There are a number of methods you can use to attract potential buyers to your client’s home. One of the most effective approaches is developing a marketing plan with your client. Your marketing plan may utilize numerous mediums such as:
- A ‘For Sale’ sign
- An open house
- Newspaper or magazine advertising
- Internet or social media advertising
Q: What is my role in the selling process?
A: Your client plays one of the most important roles in the selling process, second to the real estate professional. Your client must take on a number of responsibilities to ensure that their home is prepared for the selling process. Some of these responsibilities include:
- Maintaining the property
- Ensuring the property is easily accessible for showings
- Removing or locking up valuables
- Limiting conversations with buyers
McKissock Learning is the nation’s premier online real estate school, providing continuing education courses and professional development to hundreds of thousands of real estate agents across the country. As part of the Colibri Real Estate family of premier education brands, McKissock Learning, along with its sister schools Colibri Real Estate, Superior School of Real Estate, Allied Schools, The Institute for Luxury Home Marketing, Gold Coast Schools, The Rockwell Institute and Hondros Education Group, helps real estate professionals achieve sustainable success throughout each stage of their real estate career. Learn more at mckissock.com/real-estate.
