Seller Series Edition 1: Creating A Comprehensive Needs Analysis

Most of us consider buying a home one of our largest investments, which hopefully comes to fruition when the time comes to sell. But how do you do decide when exactly to sell, how much to ask (and expect), what offer to accept and which negotiables are destined to be deal breakers? In the Homes of Silicon Valley Blog ‘Seller Series’, we will discuss and evaluate these considerations, in our continued effort to provide credible, analysis-driven information for your buying, selling and investment deliberations.

Kicking off our ‘Seller Series’ blog edition means starting at square one: the motivating reasons behind the sale of your home. While our ultimate goal is to help every seller achieve the highest return on their investment (and in return maximizing their contribution into their next opportunity), the reasons for selling are often divided into three main need types: lifestyle factors, pricing considerations and timing issues.

Lifestyle Factors

In a setting where technology changes at the speed of light, it often feels like our lifestyles follow suit. From employment changes to commute challenges, to growing families and achieving retirement…it often happens such that our homes don’t eternally fit the dynamic nature of Silicon Valley living. And in any city, it’s no secret that one home does not accomodate every stage of your life. Here are the most common lifestyle factors that motivate our sellers:

- Home size (too big or too small for current needs)

- Location, location, location (proximity to employment, school districts and recreation)

- Age of home (the assessment that moving into a newer home is more efficient or cost effective than upgrading)

- Home style (suitability for entertaining, family life, etc.)

Pricing Considerations

Let’s be honest…no one lists their home hoping to make as little profit as possible. Just like many investment types, homes are designed to generate revenue over time. That equity is often used to achieve other goals, and sellers frequently have pending plans for that long awaited liquidity, often using home sale proceeds to:

- Use as a source of down payment for another primary residence

- Create a college fund

- Invest in a retirement account

- Maximize ROI in a seller’s market

While we’ll cover some pricing considerations in next week’s blog; the important note here is to ensure that the sale of your home is the best source of funds for the needs at hand. There are strategically times when renting out your home for a bit, instead of selling immediately, can play an important role in your portfolio. Always check with your financial advisor and tax professional for their feedback on your personal situation as well.

Timing Issues

Most homeowners do not make the decision to move overnight. They may have been mulling it over for months, stalling for the school year to end, or waiting for the market to make a move in their favor. Timing triggers for sellers are often:

- You have established enough equity to move-up into the bigger home you need

- You feel that school, employment or travel timing is ideal for a move in the next 1-3 months

- You have already found your next home & solidified the logistics

- You’ve been thinking of moving and the seller’s market is here

Quite often, the motivating factors behind selling your home are layered upon one another. A comprehensive needs analysis does not take into account only the one main reason you want to move, but all of the indicators and possibilities that surround the move as a whole, over time.

A qualified and integrity-driven real estate agent will lead you through the process of comprehensively identifying your needs for two main reasons. First, they should have your best interests in mind, and if they see a gap in how the sale of your home may not meet a present or future need, they should educate you accordingly and/or devise a solution. Second, knowing your timing, pricing and lifestyle goals will help the agent advocate for you amidst every step of the transaction. If the highest offer is from a buyer with no pre-approval and they may not be able to perform on the financing contingency, that could drastically impact your timeline. Or if you require a rent back because you need time to find your next home, your agent should include that in offer negotiations.

As you can see, the needs analysis isn’t about only identifying your needs – but creating solid structure, strategy and results around them. Feel free to reach out anytime if we can help take you through a personalized needs analysis.

Next Week: Seller Series Edition 2: Accurately Assessing Your Value & Maximizing Your ROI

Warm regards,

Mark & Jason