Chapter 20
Buy, Fix Up and Sell

When selling, the name of the game is to maximize the sale price of your property. Experience in marketing properties has taught me that there are three main factors that will influence the salability of your property. These are presentation, selling agent and price.

PRESENTATION

Everyone seems to remember first impressions. The eventual purchaser of your fixer-upper will want to like it, or better still, love it. If the home looks fresh and well maintained externally, then you are likely to make a good first impression.

SELECTING THE RIGHT AGENT

The right agent can be the difference between a sale and a non-sale. Selecting the right agent can be a bit tricky for the inexperienced seller.

Always remember that the job of the agent is to introduce prospective buyers to your property and negotiate the highest possible price on your behalf.

How you ultimately decide to sell your property (use an agent or do it yourself) is your decision.

When interviewing a prospective agent, there are 10 critical questions that you should ask them. If the agent can&'t answer, or avoids the questions in any way, then you have the wrong agent.

How long have you been selling real estate?

How long have you worked in the area?

Where do you rank in your office?

How many properties do you sell per year?

What is the best method of sale for my property? Why?

What is your marketing plan?

Will you release me from the sale authority if I am not satisfied with the level of service?

What systems do you have in place to generate buyers for my property?

Will you provide us with regular feedback on the progress of the sale? How often, and how will you do this?

Do you have a list of references that we may call?

PRICE

Getting the best possible price for your home and selling it sooner rather than later is no doubt the result you want.

There is an old saying in real estate, that ‘price turns glass into diamonds’. The point is that priced correctly, everything sells. Price should not be an issue if you have calculated the numbers correctly from day one. You should however, determine an ideal price (also known as your dream price) and a walk away price. The walk away price is like a quick sale price. You will need to exercise your own judgment when setting these prices.

Here are some pointers that will help you to be realistic when determining your price.

1. Recent sale prices of properties in the area similar to yours

To get an idea of the range, look in the local papers, attend open homes, or ask your agent.

2. Properties in the area similar to yours competing for sale at the Sale time

For instance, if yours is the only 3-bedroom home for sale in the area at the time, then you can expect competitive offers and a healthy return. And of course, less so if there are lots of others like yours on the market.

3. The strength of your marketing campaign

The more buyers you can attract to your home, the more chance there is of creating competition and getting a higher price for it.

4. Type of buyer/reason for purchase

Investors will be looking for a certain price point from which they can make good returns and are less likely to be emotionally involved in the purchase. Your home type and the type of buyer will affect price.