April 11, 2023 | Selling

The Ultimate Formula for a Successful Sale

By: Rachel VanDuzer

As the old saying goes “the home is where the heart is”, and although a cliché, the statement at its core is true. Knowing this, selling a home can be emotionally draining and overwhelming for the seller; as such, it can be difficult to find objectivity during this time. When listing a property, a real estate professional is a consultant there to provide clarity, objectivity and expertise to the seller throughout the process. Hiring a real estate agent means less work, worry and risk ultimately leading the seller to a successful sale.

The ultimate formula for a successful sale can be narrowed down to a combination of three factors: pricing, exposure and condition.

PRICING

When listing a property, pricing is an incredibly important factor. To help establish list price, the current market will need to be taken into consideration. The seller’s agent will provide an estimate of the home’s value by conducting a comparative market analysis. This tool will compare the property in question to recently sold properties and active listings in the immediate area. The analysis considers the location, age, construction, style, condition and so on when comparing the property to others in the area. This analysis will ultimately help the seller establish an appropriate list price based on current market conditions.

A real estate professional is there to consult and inform the seller, but ultimately the final decision of the listing price lies in the hands of the seller. Having a clear and true understanding of the current market is vital when establishing a home’s list price. Ignoring current market conditions could lead to over-pricing and there are many risks associated with this. Over-pricing can result in a listing sitting for far too long on the market and becoming “stale”, and even developing a bit of a “stigma” where prospective buyers will begin to wonder why the property isn’t selling and perhaps even begin to speculate that there is something wrong with the property. Setting an appropriate list price from the get go can save thousands of dollars and so much time in the long run. At the end of the day, a real estate professional wants to see maximum profits for their client. Following market conditions does not necessarily mean less money or fewer profits, it simply means a better understanding and a clear strategy moving forward.

EXPOSURE

There are many ways to maximize a listing’s exposure. To begin with, having a real estate agent who is a member of multiple real estate boards is a huge advantage as a seller. This allows a listing to not only have exposure within the local market but also allows prospective buyers from out-of-town to access the listing. For example, this is seen when listing a property with the Hamilton / Burlington board as well as the Toronto Real Estate Board. Continually, most current prospective buyers begin their search on realtor.ca by quickly flipping through a listing’s available photos. To maximize a listing’s exposure, it is imperative to invest in professional interior and exterior photography and video. First impressions are incredibly important. Although most buyers begin their search online, many prospective buyers still utilize traditional forms of advertising and media. Achieve the highest visibility by working with a real estate professional who actively utilizes local print marketing, such as the Homes & Land magazine, the Real Estate Book and local newspapers.

CONDITION

In addition to a clear pricing and marketing strategy, the final factor that contributes to a successful sale is the overall condition of the property. Prior to listing there are a number of tasks a seller can take on to improve the overall condition of the property. For example:

Completing a deep clean
- Consider hiring a professional cleaning service.

Decluttering
- Tackling this job room by room can be helpful or even drawer by drawer in highly utilized areas such as the kitchen.
- As a general rule, if you haven’t used it in the past year, donate it or throw it away.

Removing personal items
- This allows prospective buyers to imagine themselves in the space.
- When a buyer can envision themselves within the home, they are far more likely to put in a competitive offer.

Cosmetic Improvements
- Updates to frequently used areas of the home are said to provide the highest return on investment. Consider minor cosmetic upgrades to the kitchen and bathrooms.
- A fresh coat of paint is a highly cost effective upgrade which provides a fresh, clean and cohesive look to the property.

Beyond the above pre-listing tasks, a real estate professional should suggest professional staging as an option to their seller clients. Professional staging is the process of preparing a home to appeal to the widest range of prospective buyers. It involves decluttering, cleaning, aesthetic strategies, rearranging existing furniture and/or bringing in new pieces in order for the home to be presented in the best possible light. At the end of the day, professional staging means far less thought, stress and work for the seller. Did you know that on average, a professionally staged home results in a selling price increase of 5.8%? For the sake of round numbers, if a professionally staged property was listed for $1,000,000, this could mean an additional $58,000 in the seller’s pockets.

Are you thinking of listing your home for sale? Whether you’re ready to act or just have a few questions, we are here for you! Reach out by emailing hello@theoreillygroup.ca or call 905-512-5323 to connect with us today.