Home Kim Carney – Blog #2 – March 15, 2009
The Carney Team – 314-422-7449
your specialist for Clayton, Frontenac, Huntleigh Woods, and Ladue
as well as Kingsbury, Lindell, Portland Place, Washingon Terrace, and Westmoreland in Saint Louis
If you are a homeowner looking to sell your home in the million-dollar-plus bracket, you are probably nostalgic for the good old days.
The fact that those good old days were only a few years ago doesn't make it any better. As recently as 1999, many areas of the country watched as real estate prices climbed steadily, especially for seven-figure homes. Many markets saw strong appreciation in property values on an annual basis year after year. What's more, properties in the most desirable areas were frequently the subject of bidding wars that drove the asking price well above a seller's expectations..
"The largest increases in real estate prices from 1999 to 2001 occurred in the areas heavy in the tech economy. Areas such as Dallas, Austin, Houston, Silicon Valley in the San Francisco Bay area, along with Seattle and its suburbs, saw the largest double-digit increases in property values as buyers flush with cash looked for the biggest house they could find.
And then the party stopped.
"The current inventory of seven-figure homes available for sale is close to triple the amount in 1999, yet the number of buyers is low.
These buyers have some many more choices years ago and they are being far more selective and less emotional in their decision-making process. They are now being attracted to properties that are perceived as the best value for their money."
This type of market is common in many areas of the country. While prices are not plummeting, the inventory of multimillion-dollar homes is increasing
Given the current multimillion-dollar home-selling climate, sellers need to be far more creative and patient while seeking to sell their property.
If you are planning on selling your multimillion-dollar home, keeping some of the following pointers in mind might save you time, money and aggravation in the long run.
Don't Go It Alone
A sign in the yard, even if allowed, is not the best or only tool. Posting your property on your choice Web site, or on a collective for-sale-by-owner site, does not necessarily attract the buyers in your price range. Sure, you might look to save the commission by not hiring a real estate broker, but that could very likely translate to a lower offer from a savvy buyer who realizes you are doing just that.
You need to hire a real estate agent with a reputable company in your area that can demonstrate a track record of successfully marketing and selling homes like yours.
Your agent needs to apply a sophisticated, fully integrated marketing approach, which I have developed over my successful career
It's All In The Presentation
Your agent should be willing to offer advice, no matter how tough that might be, on what you need to do to stage your home so that it's market ready. Be prepared to paint, replace carpeting or fix anything not working. You might need to remove clutter, clean up landscaping or rearrange furniture. Removing valuable or rare items, such as coins, art, etc., might be suggested because they can be distracting. You want the buyer to remember your home, not the rare baseball card in a sealed case. You most likely will have competition from other sellers, so your home needs to stand out in potential buyers' minds.
I use the newest technological tools to present your home to the largest audience of potential customers as well as to their referral base.
I don’t elaborate here as some of my techniques are proprietary.
Know Your Competition
If your neighbors or other homeowners in the area are also trying to sell, see what they are doing. While location and price are the two most recognized deciding factors, you need to know what your competitors are offering as far as incentives, unique marketing ideas and features of their homes. Be honest with yourself. Is your house really the best one in the area? If so, price it that way. If not, then get real, price it right and sell it before your neighbor does.
Target The Buyer
What type of executive, professional, entrepreneur athlete could or would buy your home? While you can never really predict who the buyer will be, it is suggested that you at least consider the possibilities, so marketing can be focused on those potential buyers. If you anticipate that corporate CEOs would be the most likely buyers, then you and my team must decide how to reach them. Successful entrepreneurs will not necessarily see the same marketing that a neurosurgeon or an athlete might see. While they all may be target buyers, the marketing to each might need to be very specific.
Be Prepared To Ride Out The Storm
Downturns in the market are like long-distance races; you speed up and slow down from time to time to take best advantage of the course. While a local market may be slowed at a given time, history tells us that it will improve.
If you are under the gun to get your home sold, then you need to be far more flexible on the price. The more time you have, the longer you can hold out for your price. If you're inclined to offer incentives to either the buyer or the real estate brokers, be sure they are within the guidelines that are both legal and ethical.
Price it right, stay in tune with the market and be patient. There is a buyer for every property, or as my father said “It only takes one buyer!”