The Five ingredients for your recipe for a sale:
Just like making a cake, when selling your home, the combination of the right ingredients create the best outcome. Too much flour or too little baking soda and the cake is dry and flat. Follow this recipe and you will have a successful sale.
We usually can’t move a home to a new location! The favorite phrase of appraisers is “Location, location, location”. The pricing of your home must reflect its location. If it is close to I-70 it will usually be worth less than the same home in the trees or with views.
The upkeep and presentation of your property is crucial to obtain the highest value for your home in any given market and at any given time. Condition also affects the time on the market, with properties in better condition selling faster than those that need work.
The more methods of financing your home the more options you give potential buyers and the better your chances of a successful sale. If you can sell through VA or FHA loans, or owner carry, you increase the pool of buyers. If you do an owner carry, you may be able to get more than fair market value, (depending on the market) but you also take on the risk of the loan.
Interest rates, competition and the economy all make up the state of the market when you sell your home. The price of the property must reflect the current status of the market. Sales more than six months old may not be usable as comps if the market has changed, unless you make adjustments. The market will tell you what your property is worth; if the property doesn’t sell after some time on the market, then you need to look at the other four ingredients and see what needs adjusting. It may be that new carpet will do it, or it may need a price adjustment.
Price is the number one factor in the sale of a home. Price overcomes all objections and any deficiencies in the other four ingredients.
A sixth ingredient, which could also be considered the cherry on top, is the Realtor and his/her marketing package. Ask questions before you hire your Realtor and ask for references!
This article was originally published Feb 6, 2007 by Joanne Hanson. The recipe for a successful sale still holds true today although I did make some minor edits to the post.