Gear Up for Spring Buyer’s Market

It may still be early in the year, but it’s never too early to start preparing your home for sale in the coming buyer’s market this spring.

Spring is one of the busiest times in real estate. If you are planning to put your home on the market this spring, now is the time to prepare. It is especially important to think about preparations now, since most markets are going to favor the buyer heavily and sellers will need to do everything possible to stand out and catch the buyer’s eye.

So what do you need to do? Well, it’s going to take more than a new welcome mat and a fresh coat of paint. If you want to get top dollar for your home, you may need to do more than clean, paint and repair. To sell your home successfully, you need to understand how buyers think and which updates or changes are most likely to help you sell your home.

A recent Realty Times article took four basic selling mantras and explained why they are critical to today’s sellers and what they mean for your home sale.

1. Increase curb appeal. We’ve all heard this one, but it is one of the most critical principals in real estate lore. Real estate franchisor Coldwell Banker explains that a clean house with cosmetic upgrades like painting and flower gardens can contribute to a fantastic first impression of your home. Why is curb appeal so important? The truth is that it is more important than it ever was, as 84 percent of homebuyers use the Internet to search for homes, while one-third of homebuyers use the Internet first, before any other source. This means that homebuyers are judging your home based on how it looks in photographs, virtual tours and videos, and their impressions will help them decide whether to visit the property or not.
   
   
2. Remodel or renovate where you can. If your budget allows, invest in bigger improvements in key rooms, such as bathrooms and kitchens. Updated, attractive kitchens and bathrooms will go a long way in a buyer’s mind, whereas outdated, ugly areas will be a challenge your home has to overcome. In 2007, the National Association of Realtors found that 59 percent of homebuyers remodeled or made improvements to their homes within three months of purchase. Of these, 47 percent made improvements to the kitchen, 45 percent remodeled or improved a bathroom and 43 percent remodeled a bedroom. Sellers should also remember that the rate of new home building increased during the housing boom, and buyers are used to seeing as much as 25 percent of available inventory as new. That is what you have to compete with, so if you can make your home as close to new as possible, you have a greater likelihood of selling for a good price.
   
   
3. Be straightforward with disclosures. No one wants the disappointment of a deal getting to the last stages and the buyer backing out. Take steps yourself to make sure the buyer has no reason to wiggle out of the deal. Get a preliminary inspection yourself before you put your home on the market, so you can make any repairs or improvements before a buyer sets foot inside. You should also keep receipts of recent improvements and provide estimates on optional upgrades. This will reinforce your trustworthiness in the mind of the buyer and will help overcome any misgivings. Another way to differentiate yourself as a seller is to provide a home warranty. New homes typically have guarantees that the buyer will fix systems if they fail for a certain period after purchase, but existing homes have no such guarantees.
   
   
4. Be realistic. Setting an asking price that is more than comparable homes in the area is a sure way to make your home languish on the market. Your price should be competitive with homes in your area with similar features and condition that have sold in the last three months or are on the market. You will definitely see that homes are taking longer to sell and that buyers are being choosier. Since buyers are using the Internet to evaluate their options, you should use it too to investigate your competition. This will ensure that you are ready to defend your asking price with proper comparables from your Realtor.
   
   It is critical to remember your competition and buyers’ states of mind. Your home is competing with newly built homes and with the buyer’s idea of what a home should be. Studies show that over 33 percent of homebuyers prefer a home that is less than 10 years old, but the average age of homes purchased was 12 years of age. This statistic implies that home condition is of the utmost importance. Although buyers currently have the advantage, the current atmosphere has made everyone a little more wary and selective; if you can ease the buyer’s fears about your home, you will be closer to making a deal.

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