Should You Sell Your Home Now?

I  have had a few clients ask this question lately, and knowing their situations and homes I helped them make the right decision. Whether you should sell your home now or wait depends on many factors, and if you need to sell there are some important things to consider.

How do I know if it’s the right time to sell my home?

It is still very much a buyer’s market, and prices have dropped slightly here in San Diego County. If you have equity in your home you are lucky, but you still likely will have to compete with short sales and foreclosed properties that may come up in the comparables. Unfortunately this may bring down the value of your home, but the KEY is to price your property right. It will not sell if you do not do so; even worse, not pricing your property well at the start could guarantee you a lengthy market time. It is crucial to use the beginning of market time to attract buyers, and that is the best time to do it.

If comparables have brought down your property value, you don’t need to move and you can afford to pay your mortgage, it may be best to wait it out. If you have a job transfer you may consider asking your new employer if it is willing to purchase your home, help with financing on a new home, or you may consider keeping it as income property. If you live in a desireable area, like most areas of San Diego, you might want to consider corporate rentals, which will net much higher income rates. Corporate rental tenants tend to have higher incomes and are carefully screened too.

If you have to sell your home because you can no longer pay the mortgage and have not qualified for a loan modification, the following tips still apply to you. It doesn’t matter whether your home is sold as a traditional sale or a short sale – the goal of course is to attract the most buyers to come view your home.

If I simply must sell my home, what is most important in getting it sold as quickly as possible?

1.  Price. I cannot emphasize enough how important price is, especially now. There are still many sellers out there who, despite the comparables, want to price their homes higher and “see what happens.” Here is the problem: it used to be that buyers would come and look at these overpriced homes and make a lower offer. But in today’s market many agents are finding that is no longer the case. Now, if homes are overpriced many buyers don’t even want to see them – they feel the seller will be impossible to deal with and there are plenty of other homes that are priced well.

Many agents say the first 30 days is critical when it comes to price…I take that a step further and say that the first 14 days are critical. If the home is priced well, shows well, is properly marketed and has no major negatives (big power tower in the yard or next to a noise source like a freeway) you should see interest in those first two weeks. Agent/broker feedback is key. Negative features can be worked with as well, as long as you have a good agent.

2.  Showing condition. While most sellers do not need a professional stager, there are some simple tips to keep in mind when preparing your home for sale. Landscape should be trimmed and tidy (colorful flowers are a plus). The home should be clutter-free and no room should have too much furniture, making it difficult to walk through or view. Windows should be washed and window treatments opened to let in light. Take down personal photos. These are just some basics. I have written more detailed blogs on how to best prepare your home for sale (click on “Home Sale Tips” to the right of my blog for some more ideas).

3.  Marketing. Over 90% of buyers search the internet for homes. Your home needs to stand out. Putting it on the MLS is not enough. Make sure your agent has professional photography completed and a tour…studies have found that if a home does not have beautiful photography viewers will simply move on to the next one. Also, make sure your home is on major sites like Realtor.com, Trulia, Zillow and others. If your home is on the MLS it will show up on these sites automatically, but your agent may consider upgrading on these sites to have your home really stand out. A separate home website is also a great idea. The idea online is omnipresence.

If you decide to sell your home you should consult with a local Realtor who can advise you on price, showing tactics and an overall plan to get your home sold for the best price possible, in the least amount of time. Being a seller can be advantageous if your home looks great and is priced well, so make a plan and get started. Best of luck!