Selling a Home in Bermuda
Get Your Home in Shape | Tips for More Profit | Setting Your Listing Price | Why Kathy?
Get Your Home in Shape
First impressions are probably more important in selling your house than any other factor except price. So, when you put your house on the market, it will pay to get it in tip top shape.
Look at your property as if you were a prospective buyer. Be critical and try to see its highlights and drawbacks. This can be difficult and you should ask your real estate agent for assistance. Below is a list to help you decide what you need to invest money in doing. Again, your realtor can be a valuable asset here.
Outside:
- Trim shrubs and hedges
- Mow the lawn
- Weed flower beds
- Repair walk ways and driveways and steps
- Paint walls
- Paint woodwork
- Paint/ or refinish front door
- Repair and clean screens
- Reorganize garage to eliminate clutter
Inside - general:
- Paint walls
- Clean windows and repair
- Clean and polish wood and tile floor
- Replace worn and dirty carpet (or have cleaned)
- Replace burned out light bulbs (brighter is better)
- Make sure doors and windows operate freely
- Fix light switches
- Fix sagging floors
- Repair and repaint cracks in walls and ceilings
- Fix leaky faucets
- Clear clogged drains
- Clean fireplace
- Un-clutter closets and storage areas
- Un-clutter hallways and rooms
- Clean kitchen and bathrooms
- Keep kitchen counters clear
- Open all draperies and blinds to allow as much day light as possible
- Eliminate the odors of any animals, smoke, or food.
Remember for every dollar spent wisely, you can return two or three more dollars!
When your agent is showing your home, it is usually best if you are not there. The potential purchaser will be more relaxed and ask more questions. Put any pets away during the showing. If you must be home, don't tag along. Let your real estate agent, who is the expert, show and tell.
Home Improvements Tips for More Profit
Some home improvements projects do not add more value than the money it cost to have them done. An example is a pool. Therefore, if you are thinking of selling your home, choose the improvements wisely. A real estate agent can advise you on what will give you the best return.
While most general projects, especially large and costly ones, are out of the question, tightly focused improvements, particularly those that address specific problems, are a good idea for the seller. By targeting these deficiencies, a seller can not only recoup his or her costs, but perhaps see a significant return and make a shorter marketing period.
Aside from minor repairs outlined in the "Get Your Home in Shape" article, here are a few points to consider:
- Does your home have three or four bedrooms but only one bath? In today's market place, this would be considered a negative since someone buying your home may have a large family. The better the location of the home the more important and more value an addition of a second bathroom is.
- Is your kitchen outdated? Colors and styles that were popular 20 or 30 years ago are unattractive today. The kitchen is one of the primary selling points of your home and it may be worth doing some updating. Depending on your location, these improvements can be as little as cabinet painting and hardware changing to countertop replacing or a full kitchen remodel.
- Spruce up you landscaping. You can hire a landscape architect for ideas if your property is large or simply do it yourself. Adding flowerbeds and shrubs can substantially increase your home's curb appeal and is relatively inexpensive.
Worst House in the Neighborhood
Homebuyers looking for a good deal buy the worst house in the area. This doesn't necessarily mean the house is run down, but is an "under performer" by area standards. An improvement to a house like this gives greater gains in market value. As a seller, there is no reason to leave these advantages to the next purchaser. Discuss with your real estate agent what improvements are necessary to bring your home to the general neighborhood standards.
Cost is a major factor here. The cost of renovation and construction is very high in Bermuda and care must be given to ensure that you recoup your investment and then some. Some sellers may not be in a position financially for these types of major renovations. At the very least, implementing some of the suggestion in the "Get Your Home in Shape" article will add value.
Setting Your Listing Price
Every owner wants the best price for his or her home. Several factors, including market conditions, availability of mortgage funds and interest rates, will determine how much you can get for your property. Setting the right price is important and is something you should do with a real estate agent.
The right price should:
- Attract buyers
- Allow you to earn the most money possible
- Help you sell as quickly as possible
Remember, price is the number one factor that most home buyers use to determine which homes they view. Also, although the price is set by you, the value of the property is determined by the buyer.
Proper pricing will give you:
- A faster sale and less inconvenience
- Exposure to more buyers
- Increased realtor response
- More advertising
- Higher offers, which means more money to you
- Avoids being "shop worn"
Remember, buyers will be comparing your property with others.
Common reasons for overpricing are:
- Over improvement- spent too much money for the location
- Need- I need to get this much in order to buy a better house
- Originally purchased too high
- Want to be able to negotiate down
- I don't need to sell
- Emotional attachment
- Opinion of family and friends
Dangers of Overpricing
Most of the activity on your home will occur in the first few days or weeks. Pricing your home properly will create an immediate urgency in the minds of agents, and buyers. There will be buyers waiting for the right house to come on the market and if the house is priced right, it will sell quickly. If the price is too high, you will have less interest and by the time you decide to lower the price, it may be too late. Even if a buyer agrees to pay an inflated price, quite often, loans get rejected based on the appraisal and time gets lost.
Buyers and agents become aware of the long exposure periods and often don't make offers thinking there might be something wrong with the property. It could also be used to help sell similar home that are priced lower.
Role of a Real Estate Agent
A real estate agent should be able to give you a comparison of the prices of recently sold homes that are similar to yours. She should also be able to tell you the replacement cost of your home at today's price. These help enormously in establishing a list price. There is no "exact price" for real estate. The market determines value and together you and your agent will determine price.
Why Call Kathy When Selling?
The selling process generally begins with a determination of a listing price. Kathy can give you up-to-date information on what is happening in the market place and pricing and condition of competing properties. These are key factors in getting your property sold for the best price and as quickly as possible.
The next step is marketing. Kathy can help recommend repairs or cosmetic work that will increase the value of your property and its salability. Marketing includes exposure of your property through advertising and to other agents. Using other agencies to help sell your property is done through a co-broke agreement between the companies. The commission earned is normally split equally if one of the co-broking agencies introduces a buyer. This is an effective look in selling your property and ensures that all prospective buyers have had an opportunity to see your house. Advertising can occur in newspaper, magazines, company websites, and voice media. Kathy will know where to advertise and how often. Over exposure in the media may give the buyer the impression that the property is distressed or the seller is desperate.
Kathy also pre-screens potential buyers to ensure that they are serious and pre-qualified. She also accompanies prospects through your property and ensures security.
After obtaining one or more interested buyers, Kathy can help you objectively evaluate every offer and help negotiate the best possible price for you. Kathy will also help guide you through the contract stage once a deal is successfully negotiated and monitor the progress of the agreement until closing. The negotiating process, preparation of the sales agreement and follow up to ensure all conditions are met, can be a frustrating and confusing process. Kathy is there to take care of the details and make sure you have the best deal possible.
Real estate transactions involve one of the largest financial investments most people experience. In Bermuda today, transactions total hundreds of thousands and often millions of dollars. If you had that money to invest in stocks, would you do it without the help of a financial expert? So why would you sell your home without Kathy? The cost can be very small considering what could go wrong, and the peace of mind knowing that you received the best price in the current market.
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