Price it low and let it go, or price it high and hope they buy?

Price it low and let it go, or price it high and hope they buy?

Understanding your homes true value

                        Unlike the stock market, commodities trading, or simply the price of milk, there isn’t any “set” value for Real Estate.  We have different and separate values to review, but no true calculation of fair market value when discussing Real Estate.  Sure, we have averages and comparables to review – but besides that, if seeking true market value we are simply left to our own devices.  This can be a hindrance or can be beneficial depending on how you strategize your homes sale.  If evaluated correctly your home will sell in a speedy timeframe and for top dollar.  Done wrong and you’ll be leaving thousands in your buyers pockets.  Take these considerations into account when estimating fair market value for your home.

Understand your Comparables

            The number one factor we have when calculating Real Estate value are our comparables, or ‘comps’.  Comparable home sales in your community will give a good understanding as to fair market value for a particular home.  Understanding what buyers are paying for however is a crucial step when strategizing.  Simply viewing a sales price, beds and square footage is not enough, many factors need to be reviewed and understood.  Upgrades, Lots, Views, Pools, etc. are all factors that will have a significant role in a homes value.  Price per square foot is a start, but it’s certainly not the end game when deciding list or prospective sales price.  Owners and agents must take into consideration factors that will increase or decrease value based on comparables.  Be proud of what your home offers, and don’t be afraid to ask a premium for your upgrades or lot features.  When the original builder sold the home, premiums were added for these items, why shouldn’t they be now?

Know what you’re up against

            An often-overlooked piece of the pie when pricing is to understand what you will be up against when listed.  What other homes are currently in inventory when you are going to market?  A simple tip to help understand your competition is to see it!  Football coaches spend hours studying the opposing team before game day to understand their opponents weaknesses and strengths, why not do the same?  Once an estimated price range is reached, spend some time reviewing what buyers will be seeing before or after touring your home.  What benefits do you have over others and vice-versa.  Obtaining top dollar takes knowing the competition and reacting to it effectively. 

What does Uncle Sam say your home is worth?

            We all get tax bills and as you know these bills are calculated on value of property.  What many homeowners don’t realize is that the county sets values according to market conditions as well.  While the value cannot be consistently up to date as it is completed on an annual basis, it gives a good starting point to understanding what your home is worth.  The county appraiser will show two separate values – Just Market Value and Assessed SOH value.   A quick study of information provided by the county will tell you that ‘Assessed Value’ should sit at about 80% - 90% of your homes current fair market value.  Use their calculations to your advantage; at the very least it will let you know what range to not price below.

            With due diligence and proper guidance acquiring your homes value is not as hard as some may think.  Use these tips and tools to understand where you actually sit in today’s market.  Your home may be worth more then you or others think!

           

The Three “P’s” to achieving TOP Dollar!

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The Three “P’s” to achieving TOP Dollar!

            If in the market to sell your home, you probably want what all home sellers want.. Top Dollar!  Many sellers however do not always understand what it takes to obtain top dollar, often placing themselves in a “behind the 8 ball” position.  When this takes place optimism can quickly turn to pessimism, making your sale much more stressful then necessary.  If a top dollar sale is the result you are hoping to obtain, these three simple tips can and will help you start out on the right foot.

Price

            You needn’t be in the Real Estate industry to understand the importance of pricing correctly to obtain true Top Dollar.  Under pricing positions you in a quick sale low profit situation, and over pricing places you in a wait and hope situation, neither of which will produce the results you desire.  Pricing too low, while obviously netting you less, can lead buyers to assume something is wrong with the property.  Too high and your traffic will be low to nil, with any offers coming in generally being low ball offers.  Work with an agent who understands both the values of the community you are in as well as the value your home offers in current market conditions.  Pricing in an aggressive but realistic manner will bring higher levels of traffic as well as justifiable offers, often leading to a top dollar sale!

Photos

            You wouldn’t post a fuzzy, off center picture of yourself on Facebook – so why do it when selling your home?  I’ve seen time and time again lackluster photos of homes for sale in the MLS.  Pictures taken with cell phones, a picture focused on a table when trying to show a dining room, people in the background, etc.  In this day and age, with Internet search being the #1 source of interest from homebuyers we simply cannot be as cavalier with our photos.  Pictures SELL, so please be sure to have your home photographed by a reliable source or at the very least be sure to show the home in it’s true best light.   Wide angle lenses, correct lighting, crisp and focused images, these are imperative parts of the process if you demand top dollar.  A cell phone doesn’t cut it, do it right and your home will shine, do it wrong and there may be no contract to sign.

Promotion

            Promotion and marketing is simply crucial if seeking top dollar for your home.  More interest brings higher dollars; it’s a simple fact to understand.  As your buyer base grows, your value grows with it.  Many agents will place your home on the MLS and hope for the best.  This strategy is dated by decades, and while it can and may bring offers, they will often not be at the highest amount possible.  Local advertising, social media marketing, video tours, high quality photos and pertinent ‘on-site’ information are necessary if your goals are to obtain the highest amount possible for your sale.  If in the market be sure to work with an agent who provides this type of marketing on a consistent basis.  More exposure equals more showings, which in turn brings higher offers!

            We all want the best for ourselves, in life and in any and all monetary transactions.  With the right strategy and team put into place for your homes sale, you can make the best outcome available a reality!

A Reduced Commission may put you in a Tough Position.

A Reduced Commission may put you in a Tough Position.

            “My mothers co-workers niece’s roommate is a Realtor, she’ll lower her commission for you”.  These days it seems everyone has a friend of a friend who has a Real Estate license.  Finding an agent to work for less may seem sensible, but choosing the wrong one just to save a point or two can quickly put your homes sale in a tough position.  Everyone wants to save some money, but if thinking of going the ‘cheaper’ route, take these points into consideration before you sign that listing agreement.

Less Work = Less Money

            If your lawn service only mowed your back yard you wouldn’t consider it superior service, would you?  When selling, if you demand top dollar, the marketing of your home requires top tier exposure in every light.  From MLS marketing to magazine advertising, if it’s not done correctly you can be sure to receive a reduced offer along with that reduced commission.  Agents whom offer to work for less often do so because they simply do less work.  A true professional agent can and will acquire a high dollar amount over and beyond any savings a 1% reduction on commission will give you.  In turn having their hard work net you more.

It may be slow going with few showings

            Realtors work for a reason, sure they love their jobs, but they work for money just like the rest of you.  When an agent sees a home with a reduced commission, they may show it, but it will often be at the end of the list.  Some agents may hold off completely on sharing these listings with their clients.  Ethical? No.  But it’s not a secret that it does happen.  Advanced exposure is the key to obtaining top dollar for any type of sale, reducing your showings out of the gate is a sure fire way to reduce your marketability value.  Offering a full rate standard commission to buyers agents ensures you won’t be ignored.

Don’t cut down The Giving Tree

            A favorite book of mine growing up was ‘The Giving Tree’.  A young boy continues to take from his favorite tree until it is nothing but a stump; with ‘nothing left to give’.  There may arise a time during negotiations where buyer and/or seller are close to final terms but neither will budge on final perceived value.  At this time, many agents may offer to contribute a portion of their commission to make the deal go through.  If an agent has already given their share to begin with, there may be nothing left to give shall the situation arise.  Save commission reductions as an ‘if needed’ request and the agents involved will do their job to obtain true top dollar for your home. 

           

            ‘You get what you pay for’ is the best advice I can give to anyone pursuing a low commission agent.  Be sure to look at the big picture; if you let saving a few bucks jade you, you just may end up paying more in the long run - for sub standard service.  We all love saving money, but if the cost of saving exceeds the savings themselves, you’ve done yourself a disservice.