If you are selling your home, it is important to list it in a way that will get the most money in the shortest amount of time. In this blog post, we will discuss luxury real estate and how to position your home to sell for maximum profit. We will also give tips to buyers and sellers so they can be fully prepared when making such a large transaction. Selling or buying a home is a huge decision, and it is important to have professional and experienced help throughout the process!
Caryn and I like to take a holistic approach when we list a home. Many factors go into pricing and positioning a home for a successful transaction. When we say holistic we mean an overall SWOT analysis of the property we are listing and very few agents practice this technique. If a SWOT analysis is thoroughly performed the strengths, weaknesses, opportunities and threats of a property will present the path for a successful sale.
A SWOT analysis of a property should take into account the following:
- location of the property
- type of home or land
- recent comparable sales in the area
- current market conditions (buyer's or seller's market)
- any unique features or selling points of the property
Emphasizing the strengths and strengthening the weakness of the home will depend on the scope of work that needs to be done to position the property to sell and compete with other properties. Minor changes can make a big difference in a property’s first impression such as staging with items you can find at Home Goods, TJ Maxx or your local thrift store. Additionally, depending on the season fresh plantings/pots and flowers can brighten the front entrance or foyer. If the home is dated and in need of a more significant facelift, we recommend an experienced professional home stager.
Home staging can range from a few hundred to a few thousand dollars and is an excellent investment as it will make the home more appealing to potential buyers. Caryn has been working with professional home stagers for over fifteen years and she has seen firsthand how important it is to have a home that “shows” well.
Caryn and I work with some of the best real estate photographers in the business and we believe this is another important factor in getting your home sold. We have seen properties that were beautifully staged but the photos did not do them justice and potential buyers were turned off before they even stepped foot inside the door! On the other hand, we have also seen properties that were not staged but had amazing photos which helped to generate a lot of interest and ultimately resulted in a sale.
The weaknesses could be things you just can’t change; such as floor plans, location of the property and the size of the property however identifying them and providing alternatives or ideas for the next buyer could soften the objections. For instance; open floor plans and quiet space for an office are the two most requested features we hear and living in the Philadelphia area where we are a city of historic homes in the city and in the suburbs it can be a challenge to find them. However these homes could have the space and with a little imagination you could open up the space or close it of to create an envious “Zoom room”! We have a program where we can provide our client a virtual vision of what the space could look like....very cool!
The opportunities and threats to a property can be fluid so understanding the real estate market is critical but more importantly being nimble and responding to market changes and not reacting, takes patience and trust. Big difference in how one responds to a shift in the market and how another reacts to that shift. Paradigms are the windows in which we see the world and it’s important to know the real estate cycle and how shifts in our economy and social environment can affect our vision and current market trends in real estate. In order to get your home sold, it is important to be aware of the external factors that can affect your sale. These include anything from market conditions to unique selling points of your property. By taking these into account, you can make sure that your home is positioned for success!
Here are a few examples:
- the pandemic has created more of a virtual world which has translated into people being more comfortable buying a home without physically touring it first.
- the current state of the stock market may make some people more comfortable buying a real asset such as a home or land instead of investing in stock.
- if there is a lot of new construction in an area this can have a positive or negative affect on pricing of existing homes. If the new construction is luxury homes and the existing inventory is more mid-market then this could have a positive effect as buyers may be looking for something that is move-in ready. However, if the new construction starts to price out potential home buyers in an area then this could have a negative effect.
- businesses moving into or out of an area can have an impact on the real estate market. If a major employer moves into an area this could result in an influx of people looking to buy homes and potentially driving up prices. On the other hand, if a major employer leaves an area this could result in people leaving as well and potentially leading to a decrease in home prices.
Real estate is a cyclical industry and being able to understand where the market is heading is not always easy but if you take into account all the external factors that can affect real estate then you will be better prepared when making such a large transaction. Selling or buying a home is a huge decision, and it is important to be as informed as possible before taking the plunge.
Caryn and I have over thirty-six years of combined experience in the real estate industry and we have seen firsthand how external factors can affect the real estate market. We believe that it is our job to educate our clients on these factors so they can make informed decisions when buying or selling a home.
If you are thinking about buying or selling a home, we would love to chat with you and help you navigate the real estate market. Please give us a call at 267-614-6484 or send us an email at [email protected]. We look forward to hearing from you!