How to Sell Your Home in Silicon Valley
Helpful Tips for Prospective
Home Sellers in Silicon Valley
Here are a few essential tips from that you should keep in mind as a home seller in Silicon Valley.
1. Hire A Local Realtor
Selling a house is always stressful and requires a lot of prep work ranging from advertising, cleaning up, preparing for inspection requirements, being available for potential buyers' visits, planning the move, etc. The good news is: you do not have to do it all by yourself! Hiring a Realtor is the right thing to do in most cases for obvious reasons.
Before anything, your San Jose Realtor will help you determine the right price through a market analysis showing comparable home sales prices in your area.
Your Realtor will then plan and implement the appropriate marketing strategy to advertise your home, not just online (e.g. placing your home on MLS Listings, Zillow, Trulia, Redfin, etc.) and offline, but also among Realtors from his own firm and other brokerage firms.
A common practice in the real estate world is called "caravanning" and consists of inviting other Real Estate Agents into a home, or more often a series of homes, listed for sale with a view to achieve higher visibility and marketing. Remember that Realtors do not just represent sellers; in many cases, Real Estate Agents act on behalf of potential buyers as well.
Your Realtor will then typically show your home, assist you with purchase offers from buyers (and submit counter-offers on your behalf if required) and help you finalize all paperwork to complete the sale seamlessly.
2. Home Ensure the property is priced competitively
To price your home competitively you need to understand the difference between the asking price and the selling price. To put it simply, the difference between the asking price and the selling price in residential real estate is known as the "sale-to-list ratio" or "price negotiation percentage." This ratio represents the percentage by which the final selling price differs from the original asking price. A higher ratio indicates that homes are generally selling close to or above the asking price
Some sellers intentionally set an asking price higher than the expected selling price, leaving room for negotiation. Overpricing one’s home prior to going on market almost always has negative ramifications for sellers:
Across Bay Area markets, listings that require price reductions before selling consistently take much longer to sell and sell for significantly lower average values than homes priced correctly.
The vast majority of buyers will not make offers on homes they consider significantly overpriced. Either they don’t want to waste their time, or are uncomfortable with possibly “offending” the seller. They simply move on to listings they consider fairly priced.
Well-priced homes create a sense of urgency in the buyer/broker communities to act quickly with strong, clean offers, and often lead to competitive bidding between buyers – which is the most likely way to increase sales price.
Conversely, if the asking price of your home is too low you may end up with lots of potential buyers but only a few of them will have the means to buy your home for the price you want. As a result, you will lower your chance of having interested buyers compete with each other and come back to the negotiation table with a higher offer.
It is stating the obvious, that what sellers need is an accurate asking price to attract buyers quickly. To determine the optimal selling price for a home, there are key data that need to be thoroughly analyzed such as but not limited to: Sales of comparable properties in your neighborhood AKA comps over the last 6 months, listing price per square foot, days on the market (DOM), sale price to list ratio for recent sales of comparable properties, market trends, and conditions specific to your neighborhood; the condition of the home, the local amenities and schools, the commute and/or proximity to public transportation and so on.
The aim of this extensive data study is twofold: Identifying all the reasons why buyers should buy your home AND anticipating and addressing before listing your property for sale the reasons why buyers may want to negotiate the asking price so they won’t be able to do it.
To conclude, bear in mind, that whatever the state of the real estate market, serious buyers AKA able, willing, and ready buyers are always actively searching for homes. You just need to make sure that your asking price and marketing strategy will persuade them that they must come and see your home.