Understanding the potential Buyer for your property.

This is a crucial step in attracting the highest possible bid for your property. Buying a house or condo is an emotional decision as much as it is a financial one.

A buyer who values a particular feature of your house (i.e a large backyard with a deck, location, close to water/transit and etc.) is likely to become emotionally attached to your property because they can realize the value of owning your property. Compare that to a buyer who does not care much for maintaining a backyard much less using the deck.

Using features of your property to attract the right buyer is a strategic move.

Property preparation. Interior & Exterior.

The cosmetic appearance of your house or condo is undoubtedly the most important aspect a potential buyer will consider – after all, an informed buyer has been exposed to hundreds of property photos, layouts, and decor choices.

Your property will have to satisfy the most discerning of eyes.

Even small defects such as a loose door handle or creaking door can stigmatize your property as less desirable.

A property that presents itself as ready to move in will be valued higher than one that needs interior and exterior work.

Listing Photos that highlight competitive features.

Professional quality photography and video will set the first impression of your property.

How many listing photos have you seen where the photographs were either incomplete or taken in poor light?

Perhaps your property offers acreage – drone video?

A professionally prepared video walkthrough of your house or condo can further reinforce the emotional connection with your property. It also serves to show aspects of your property that are simply not possible through photos.

• profile two to three potential buyers.
• consider local demographics, age, marital status, income level and education in profile development.
• determine best approach / method(s) to reach buyer.
• search engine marketing to target buyers looking to buy in your neighbourhood/street.

• determine the correct social media platform for the target buyer (i.e facebook – average user age 40, Instagram average age 35).
• prepare stunning brochures to hand out at open houses.
• multiple direct-mail strategies to inform local property owners of upcoming listing – creates exclusivity.

• crafting property descriptions, photo style, decor and more.
• personalized property walkthrough video.
• list your property on the MLS® system – instantly makes your property visible across tens of thousands of websites.

Why Qualify?

We have all heard the story, of the house that sold for over asking but the buyer failed to close. It could be a variety of legitimate reasons. Perhaps the house sold on the condition that the buyer could first sell her own house or that the buyer simply failed to meet the mortgage requirements on the day of closing.

As a seller, you are beholden to the buyer to satisfy all legal, tax and mortgage obligations.

Sure, you have mitigating options at your disposal but no one should have to carry the burden of someone else’s failings or misfortune.

There are of course some obvious factors that need to be considered;

• the buyer’s financial capacity to purchase your house or condo.
• first-time buyer? Is there a mortgage pre-approval?
• is the buyer motivated or change trying their luck?
• does the buyer have an urgency to move in? (i.e starting a new job, expecting a baby and etc).
• does the buyer need to sell their own house as a pre-condition to purchase yours?

Effectively qualifying a buyer during the offer-consideration period can greatly reduce the risk of a failed closing down the road.

Finding the Right Buyer.

Finding the right buyer depends on the work we did in identifying and understanding the ideal buyer for your property.

It should be relatively easy to come up with two to three personas for your house or condo. Why two or three? Because it never hurts to expand the net and attract multiple types of buyers. In other words, we can attract a young couple who is looking for a little more room for their growing family and at the same time attract empty-nesters who want to take advantage of nearby nature trails and access to parks and marinas.

Conditional on Sale

You want to understand the risks that a sale with conditions brings. In particular, an offer to purchase your property on the condition that the buyer’s own property sells first. In this type of deal, multiple properties are depending on each other to close. If any one of the buyers or sellers falls through, it causes the entire chain to collapse.

A first-time buyer has an advantage over existing homeowners, who need to first sell their property.

For sellers too, moving to rental property demonstrates to the buyer that your property is vacant and ready to move in. This further reinforces the buyer’s interest in your property.

Accepting Offers

The manner in which you decide to accept offers can have a big impact on the quality of offers you receive.

First-come, first-served

This strategy signals to the buyer that they should probably go in with a lower offer in hopes of slowly negotiating toward some agreeable value.

All offers due at the same time

This strategy requires that all buyers submit their offers by a set date and time and that all offers will be reviewed together. This signals to buyers that they should put in their best offer immediately. If they do not, they risk losing out to another buyer.

Review Contingencies

Any condition that allows for the buyer/seller to break the agreement if the terms of the condition are not met.

Common contingencies include;

• Financing.
• Building inspection.
• Appraisal
• Buyer’s home sale.
• Water well & Septic inspection.
• Mould, Lead paint, electrical and more.

While not all offers include multiple conditions it is important to understand their implications and plan a course of action for any deficiencies that may arise. In other words, if an item is identified as deficient through a building inspection, are you willing to repair it or compensate the buyer?

If you receive an all-cash-no contingency offer, you still need to understand where the funds for the purchase are coming from. Does the buyer have cash sitting in their bank account or are they using a loan to fund a portion of their purchase?

Calculating True Profit

Consider the following questions that could affect your profit;

• does the buyer’s desired closing date impact you financially? I.e additional rent or bridge loan.
• are appliances and fixtures included in the sale?
• are there any repairs that you have to complete?
• is the buyer requiring you to pay a portion of their closing costs?
• on the flip side, the buyer may be flexible and permits your stay in the house for a couple of months after closing. This could save you moving and rent expenses.

Arriving at the true profit will help you realize the actual value of an offer.