Lately, I see a prevalence of marketing material being mailed to me offering to sell my home. One such mailer offers something "new and innovative". Another calls it "advantage". What is it? The program is simply an "exclusive listing" or in simpler terms a "pocket listing". Nothing new about that. It means: you list with us, and we will also sell it ourselves off the MLS. They usually offer a serious discount if using one of their own agents to both list and sell the home. While the savings of 1.5-2% on a 2 million dollar home may seem attractive ($30-40,000K) sounds good, right? There are problems with this business model: 1st: it effectively shuts out free market sales prices which could take the sales price well beyond the 30-40K savings. Today in Silicon Valley, in multiple offer situations, we are seeing offers SIGNIFICANTLY above asking. My last two sales in Sunnyvale received 175K and 220K above asking. So by going this pocket listing route, you may not be receiving fair market value on your home. 2nd: My experience is when I am approached by a buyer on one of my own listings, usually the buyer is looking to strike a bargain, and predictably would be the lowest offer in the multiple offer situation. So Buyers looking to do this, are typically bargain hunters and won't pay fair market value. 3rd Conflict of interest in a dual agency. Conflict between Buyer/Seller or Seller/Agent or Buyer/Agent. While there are legitimate reasons why a seller may want to sell "off market", Sellers should be aware of the potential pitfalls of going this route.
As you know, one of our specialties is flipping homes for our customers so they get top value when selling. There are some do's and don'ts. Go for anything to do with the homes appearance, landscaping, painting, wallpaper removal, hardwood floors, interior doors, baseboards, crown moldings, new lighting fixtures. These upgrades are relatively low cost but high visability.
The don'ts are things that are high cost but low visability. You will not get a good return on the money spent. These would be, roofs, heating systems, electrical, plumbing, driveway replacement, pools (which some folks like and some don't-but generally doesn't add value. Obviously, if there's a safety issue you should address these things, but not necessarily for the sale. It's the high visibility items that bring in the Buyers.
Does it matter who you hire? Absolutely!! Most people have never sold a house before, so naturally it isn't something most people would know how to do. Most of the time, it is based on personality, appearance, or perceived reputation. When in fact it should be based on how well is this person positioned to sell MY home. Is this person new to the business, and not yet qualified to handle my most important asset (common mistakes are transactional errors, sq.ftge. misquotes, incorrectly documented or incomplete disclosures, disclosing confidential sales info of the sellers before closing), not knowing how to handle certain situations and having it escalate, or miscalculation on pricing and the house doesn't sell? If it doesn't sell, you then "chase down the market", having to price reduce because of accumulated days on market and new inventory. Is this person #1 in your marketplace (after all everybody claims to be #1). Often times, this is NOT your best choice. Why? Because if they have so many listings, they cannot possibly devote enough time to each of their listings to ensure YOU get the top price for your home. #1 producers are usually teams of people, meaning their sales results are often a shared result with the others on the team. I specialize in getting YOU our customer the very best price for your home. Optimal pricing, condition, timing, and negotiations are what will bring about your best price of your most valuable asset. Use these core ideas in looking for your Realtor, and always a good idea to interview more than 1 agent for the job of selling your home. And of course, consider giving us a call to help you!
Did you know that the peak period for a home to be viewed by buyers is in the first 3 weeks on the market? It is really important that all efforts made to sell a home occur within these 3 critical weeks. Best prices occur in first 3 weeks, multiple offers occur in the first 3 weeks. Motivated buyers are most likely to buy your home in the first 3 weeks. Therefore it is important that your home look its best during this time-even if it means clearing out and staging the home. It is important that the right price is set on your home so that it elicits the multiple offers that bring in the highest and best price.
Sadly, too many sellers are looking for the "extra pot of gold at the end of the rainbow" and they miss the opportunity to reap their best price. Rather than look at the reality of what is presented to them, they opt to hold out hope that there is something better for them if they wait.
And they wait, and they wait and they wait. By time they realize that waiting isn't going to give them what they had in the beginning, it's too late. From that initial 3 week period, any excess time on the market signals the end of premium pricing.
Do not make this fatal mistake. Look at the facts...objectively. Listen to the people who you trusted to sell your home, and follow their advice. They have your best interest at heart!