Questions that sellers frequently ask us

Q. Is there a “best time” to put my house on the market?

A. Along with economic factors such as supply and demand, the time of year you choose to sell can impact both the length of time it takes to sell your home and its ultimate selling price.

Typically, the real estate market picks up around February, continues strong through late May and June, and tapers off during July and August. The summer is usually the busiest time for moving since school is out and buyers may be looking to get their children in school before the new school year. September through November generally marks a rally not as strong as late winter and spring, followed by a slowdown from Thanksgiving through and beyond the Christmas and New Year holiday period.

Q. What are comparables or comps?

A. These are referred to as recently sold properties that are similar in size, location, and amenities to the home for sale. These properties help an appraiser determine the fair market value of a property.

Q. Why shouldn’t I price my house a little high, since I can always drop the price later?

A. That’s a strategy that sounds good – but, in fact, is more likely to result in a lower price. Here’s why. The first few weeks a house is on the market is when it will have the most activity. If a house is overpriced, it has to compete with houses at that higher price level, which are houses at that higher price level, which are almost certainly larger or have newer/more luxurious features.
So the overpriced home is unlikely to attract an offer. Worse yet, those first weeks are when real estate agents preview the house. If it’s overpriced, they may not even bother to show it to their buyers. Eventually, the seller will have to drop the price – and may end up with an even lower price because buyers will wonder why the house has been on the market so long and may factor that into their offer.

Q. What are some other disadvantages of pricing my home too high?

A. Well, several factors may come into play:

• You might help sell similar homes that are priced lower.
• Your home may be on the market longer.
• You could lose market interest and qualified buyers.
• You might create a negative impression of the property.
• You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.
• You may have to accept less money.
• A potential buyer may face appraisal and financing problems resulting from the inflated price.

It is not recommended to sell your home any higher than the appraised value unless demand is high in your area. Ask you real estate agent which price would be right for your home. Also make sure you get a Home Value Request to assist in determining the best sales price for your home.

Q. What is meant by the term “contingency” in a sales contract?

A. Sales contracts typically contain several “contingency” clauses, or stipulations that the sale is subject to. For example, with a mortgage contingency, if the buyer is unable to obtain financing within the specified timeframe, neither the buyer nor the seller is required to complete the purchase. Among other common provisions in the “subject to” section are termite and other inspection issues and the purchaser’s need to sell a current home first.

 Q. What is an escape clause?

A. An escape clause, also known as a kick out or knockout clause is a provision that allows the party to void the contract. For example, the seller may retain the right to look for a more favorable offer, with the original purchaser retaining the right, if challenged, either to firm up the first sales contract (such as by waiving a contingency) or to void the contract. As another example, sellers might insist upon an escape clause in a contract that hinges on the buyers’ selling their home.

 Preparing to Sell

Q. What do you need to consider when preparing to sell your home?

A. There are many things to consider when preparing to sell your home, and the more prepared you are for the journey, the easier it will be. Here are some basics to consider:

Presentation is everything. You’d be amazed at the difference “cosmetic” improvements can make in how buyers react to your home. So you may want to spend some time sprucing up your home with paint and landscaping as well as taking care of necessary repairs you may have been avoiding. This not only will help you get the very best price, but may help you get an offer sooner.

Make arrangements for pet care. If your house is also home to a cat or dog, that can be noted in your listing so that real estate agents act with due caution. You may want to close your pets off in a separate room or fenced area outside, or request advance notice when your house is to be shown.

The value of placing a lock box on your home. A lock box is a key storage system placed on an entrance to your home that is accessible only by active, licensed real estate agents. With today’s technology, most lock boxes allow us to know which sales agent showed your house and when. A lock box allows sales agents to show your home when you’re not there, without having to go to the listing sales agent’s office to obtain (and later return) the key. By making it more convenient for real estate agents to show your home, it will be viewed by a greater number of buyers.