Ask anyone what is the most important factor affecting the sale of a property, and the answer will probably come back as, LOCATION! However, although location is important in most real estate transactions, it is only one of many important factors affecting a potential home sale.
Apart from the location, the overall condition of the property will usually influence the deal. A home needing repairs, will eliminate many buyers, as most people just want to walk in and do nothing.
Pricing of a property is another important factor affecting a sale. A vendor will need to convince both a buyer and a home appraiser of the value of the property. The home buyer will be more subjective and will compare the amenities of the home to those of other homes in the same price range. The home appraiser will be more objective and will compare size, age and cost-identifiable features in the home against other properties that have already sold.
To sell, the home must be priced within the appropriate range. If similar homes are selling from $300,000 to $350,000, it does no good to insist on selling at $395,000.
If the home is priced it too high, then it might sit on the market for
months waiting for a buyer that may never arrive. This can cost a seller in mortgage interest fees, taxes, property insurances etc. When the seller finally reduces the price, it may need to be sold for less than if the price had been set correctly in the first place. Most property buyers will want to know how long a property has been on the market. They may think something is wrong with it, or that the vendor is desperate to sell.
The right price is usually based on a comparison with what similar properties have sold for recently in that area. The recorded prices are generally published and not confidential.
Effective marketing is also critical when selling real estate. You can have the best home on the market, but home buyers still need to know about it. They also need to know why the property is worth buying. What benefits will the home buyer enjoy?
Whether selling on your own or through a real estate agent, effective marketing is an essential ingredient in any successful real estate sale. Effective marketing can make a home stand out from every other property in town.
Finally, any good deal requires a motivated buyer and a motivated seller. There is an old saying “It takes two to tango” and this is particularly true with a real estate sale. Finalizing any deal requires the right balance:
- A motivated buyer = increased offer price
- An unmotivated buyer = reduced offer price
- A motivated seller = reduced asking price
- An unmotivated seller = increased asking price
The best deal is usually a WIN/WIN for both parties. Bring together a motivated home buyer with a motivated home seller, and a deal is always on the cards. The likely outcome; the property will sell for close to its true market value.