What is THE most important thing on the mind of every homeowner when they’re thinking about selling? The answer has to be: How can I get the most money? Well, here’s how…
The Formula has 3 Parts:
Pricing + Exposure + Speed = Max Money
1. Pricing – simply put: price it right. You have to know the market well enough to find that balance between high, but not too high. For every property there is a sweet spot that ensures you are not under priced, but allows the most potential buyers to see it. Is hitting that perfect number possible? Of course; however, it takes practice and current market knowledge.
Here are a few of the factors we consider when pricing a home:
- Similar homes in your area that have sold recently
- Features that set your property apart
- Features your property may lack
- The current trajectory of your market (area and property type)
- Our team’s recent experience with similar properties
- How broad the market is for your property
- Who the target market is
- What the needs are of current buyers that this property fills
- Multiple offer analysis – the likelihood of more than one offer being made
Example: Brandon and Rene had a beautiful home in Bend they loved, but needed to sell. They tried to sell with another office for over 3 months with no success. Not long after they took their home off the market, our team contacted them. One of the first things we saw were issues with the pricing and exposure portions of our formula. We did not ask the seller to slash the price, but did ask them to come down from $305,000 to $300,000. We did this for a few reasons:
Our pricing formula had their fair market value right around 300k
Dropping their price to a “whole” number would increase the likelihood of being seen by more potential buyers
Our recent experience in the area told us this price was significantly more likely to drive up interest
After a week on the market we had a full price offer and we closed with no issues within 47 days of acceptance. And, yes, $300k was a number that Brandon and Rene would have accepted with their first agent.
2. Exposure – Supply and demand are a non-issue if no one sees the product. For premium exposure on your listing, we suggest a mix of building up a buzz, packaging it properly, and getting it in front of as many eyes as possible.
Building a Buzz:
Like every good movie ever made, there is time and money spent well before the movie is released to generate a buzz. Here are a few things we do to build up a buzz:
- Pre-market your property through our database of thousands of active buyers
- Share your property in-house, with some of the best, most productive agents in CO
- Calling in your area, when applicable and appropriate, to let neighbors know
Every property deserves, but also needs, to have it’s best foot forward. Not only do buyer’s judge homes by their curb appeal, now they may judge by the first picture they see online. Here are a few things to focus on:
- Quality pictures, thought-out verbiage, and highlighting of specific features relative to today’s buyers
- Customize features that may include, labeled maps, aerial shots, 3D tours, etc.
- Paying special attention to things like lock box placement, so buyers enter the home through the door we want them to, and an analysis on the “Big Three”: Light, Space, and Scent.
Reaching out to as many people as possible:
Our team has been working in Central Oregon for years. We do what we can to create demand, not just wait for it.
- Our sites attract hundreds of new buyers each week
- During most 24hr periods we have nearly 400 active buyers on our sites
- We go the extra mile to draw attention to our listings and clients, including enlisting local radio talent and connections like Shark Tank’s Barbara Corcoran
Example: Dee in Redmond wanted to sell her home and be out of the area in a few months, so we hurried over for an appointment. She, of course, did not want to give up money to sell quickly, but wanted us to “do what we could”. When we sat down with Dee it was apparent from the moment she opened her door that she was a smoker, a fact further solidified as we entered her home. She told us that she has been smoking cigars in her home for years. Her home was otherwise very well cared for and made the “packaging” quite easy. However the “scent” portion of our analysis was not so easy. We assured her that we could not sell her home for anywhere near what it was worth with the current smell, and that taking even a month to properly and professionally handle the issue was the best thing for her. With some hesitation, she took the time and spent the money to handle the smoke. We pushed the home before it was listed, prepared our marketing in advance, and, within a week of listing, we had a full price offer and closed the deal 39 days later, with no issues.
3. Speed – don’t roll your eyes just yet. I’m not saying sell it in a day, but it’s a fact that properties that sell quickly sell for a higher percentage of their original list price than those that sit on the market. Yes, selling in one day can mean money was left on the table (hence the pricing portion of this formula), but quicker almost always means more money in the pocket of the seller.
Example: Kevin and Janelle had a manufactured home on nearly 5 acres just outside of Bend. They wanted to sell and tried with another office for nearly 3 months. After pulling the home off the market, they realized they still really wanted to sell and agreed to meet with us. It was very clear that they had a great property and I was blown away that they did not sell at their previous price. I don’t know what was done to market previously, but it was clear the home should have sold. They asked us if we were okay listing the home just under 350k, since it was previously listed over that price. They thought it would open up the market, and we agreed. But we also counseled them that the new price was at the low end of their fair market value and there was still potential to ask for more. However, given their previous experience, they wanted to get this done and move on. Long story short, we had multiple offers that first week. One of the potential buyers saw the true value in the property and made an offer for far above the original listed price.
All three of these factors are connected and, if done with thought and experience, can lead to max money in your pocket. For details on what we do, how we do it, and examples of how we have helped hundreds of Central Oregon homes sellers like you, give us a call or click for more information.