While residential real estate is a very unique beast, it shares some strong commonalities with other industries. If you are buying or selling a house, the sales process has a few distinct milestones. Here are some sales tips to help you on either side of the phone calls.
For Homebuyers
If you're looking to purchase property, the first thing you need to know is the list of steps on your list. Then you you begin to think strategically about each step.
Get Pre-approved for a Mortgage
Before you start looking for a house, it is a good idea to get pre-approved for a mortgage. This will give you an idea of how much you can afford and will also position you a more competitive buyer when you make an offer on a property. Remember: Mortgage brokers are sales reps themselves, and you are their target customer. That gives you some leverage in negotiations. Listen carefully their sales pitch but don't settle for a less than their best offer.
Do Your Research
Research the neighborhood and local market to get a sense of what kind of properties are available and at what price points. This will help you make informed decisions about what you can afford and what you are looking for in a property. Attending numerous open houses, even for ones that you aren't necessarily enamored with, is a useful tactic. You can begin to recognize patterns in listing agents and identify their sales techniques. You can also see what the other potential customers, aka your homebuying competition, look like and the type of questions they ask.
Work with a Real Estate Agent
A real estate agent will help you navigate the process of finding and buying a house and can provide valuable advice and guidance. Just as important a a sales strategy as a buying strategy; an experienced real estate professional will lead this charge for you immediately. It is their job to map out your journey to your dream home and will use their insight to help your sidestep the worst pain points of the process. They have done more deals and transactions than you ever will -- let them leverage their own sales skills on your behalf when you're zeroing in on a home to buy.
Make a Competitive Offer
If you find a property that you want to buy, it is important to make a competitive offer. This may involve negotiating with the seller to arrive at a mutually acceptable price. At this point, each party ought to rely on their sales rep to lobby on their behalf. Successful salespeople, which is what agents are, should be able to navigate the selling process in such a way that everyone feels satisfied. They may need to spend time getting there, going in depth in meetings and sales negotiations, but have faith.
Get a Home Inspection
Before you finalize the purchase of a property, it is a good idea to have a home inspection to identify any potential issues that need to be addressed. Nobody wants to feel like they got duped by sharky sales tactics and ended up with a lemon. A home inspector or appraiser can help a potential customer avoid disaster. This is also recommended because one day you may wish to sell this property, so it's smart to build rapport for reputable inspection companies now.
For Homesellers
The steps for selling property are slightly different from buying (no surprise). Breaking down each one gives you an opportunity to work smarter.
Set the Right Price
Setting the right price for your property is crucial for attracting buyers and getting a quick sale. Work with a real estate agent ASAP to determine a fair market value for your property. A top broker has the resources to perform both offline and online research into comparable property sales, understands what prospective customers are willing to pay, and how to execute a sales presentation that can seal the deal.
Make Necessary Repairs
Before you put your house on the market, make any necessary repairs or updates to increase its appeal to buyers. This may include fixing any issues that were identified during a home inspection. This is when it is beneficial being existing customers of home inspectors (if you listened to our advice on buying a home); you may be able to pass this cost off to the potential buyer this time around. Remember to lean on the insight of your listing agent; they can advise you how to allocate spending to the things that matter most to your target market, while staying within your budget constraints.
Stage the House
Staging a house can help it show better and make it more attractive to buyers. This may involve decluttering, rearranging furniture, and adding decorative touches. When your agent hosts an open house, you can control the customer interaction and on-site experience. Think about these visits the way great salespeople think about inbound sales -- your property should tell its own story.
Market the Property
Marketing your property effectively can help increase its exposure to potential buyers. This may include listing it on multiple listing services, using social media pages, and (of course) working with a real estate agent to host open houses. In fact, your agent should have resources dedicated to these very aspects: a marketing team to boost your coverage and sales team to help massage the deal over the finish line. You're almost there!
Negotiate the Sale
Once you receive an offer on your property, it is important to negotiate with the buyer to arrive at a mutually acceptable price. Your real estate agent will largely navigate this final piece of the sales process. If you've done everything up to this point, then you'll be ready to identify a good offer and be successful selling your home.
Did you learn anything about purchase or sales strategies for property? Send this to someone buying or selling a home.
If you've been thinking about your own home and selling online, check out TrueParity first.
