Every reasonable owner wants the best possible
price and terms for his or her home. Several factors, including
market conditions and interest rates, will determine how
much you can get for your home. The idea is to get the maximum
price and the best terms during the window of time when
your home is being marketed.
In other words, home selling is part science,
part marketing, part negotiation and part art. Unlike math
where 2 + 2 always equals 4, in real estate there is no
certain conclusion. All transactions are different, and
because of this, you should do as much as possible to prepare
your home for sale and engage me when you feel is best able
to sell your home.
What is your home worth?
All homes have a price, and sometimes more than one. There's
the price owners would like to get, the value buyers would
like to offer and a point of agreement which can result
in a sale.
In considering home values, several factors
are important:
- The value of your home relates to local
sale prices. The same home, located elsewhere, would likely
have a different value.
- Sale prices are a product of supply and
demand. If you live in a community with an expanding job
base, a growing population and a limited housing supply,
it's likely that prices will rise. Alternatively, it's
important to be realistic. If the local community is losing
jobs and people are moving out, then you'll likely have
a buyer's market.
- Owner needs can impact sale values. If
owner Smith "must" sell quickly, he will have
less leverage in the marketplace. Buyers may think that
Smith is willing to trade a quick closing for a lower
price -- and they may be right. If Smith has no incentive
to sell quickly, he may have more marketplace strength.
- Sale prices are not based on what owners
"need." When an owner says, "I must sell
for $300,000 because I need $100,000 in cash to buy my
next home," buyers will quickly ask if $300,000 is
a reasonable price for the property. If similar homes
in the same community are selling for $250,000, the seller
will not be successful.
- Sale prices are NOT the whole deal. Which
would you rather have: A sale price of $200,000, or a
sale price of $205,000 but where you agree to make a "seller
contribution" of $5,000 to offset the buyer's closing
costs, pay a $2,000 allowance for roof repairs, fund two
mortgage points, re-paint the entire house and leave the
washer and dryer?
How much is too much?
Because all transactions are unique there is flexibility
in the marketplace. The amount of flexibility depends on
local conditions.
For example, suppose you're selling a townhouse.
Suppose also that there have been five recent sales of the
model you own and that sale values have ranged between $200,000
and $210,000. You now have an idea of how your home might
be priced. In a strong market perhaps you can ask for $210,000
or a little more. If the market has slowed, $210,000 may
be a reasonable asking price, but perhaps more than the
final sale price.
Here's another scenario. Imagine that you
live in a community of Victorian-style homes, most of which
were built in the 1920s. All the homes are different in
terms of size, condition, modernization, style and features.
In such a neighborhood, an average sale price is just a
statistic without much practical meaning. On a single block
one home may sell for $400,000 while another is priced at
more than $1 million. The average price may be outrageously
high for one home and staggeringly low for another.
Who can help?
I am active in the local marketplace and can provide assistance
with pricing, marketing, negotiation and closing.
I have handled many transactions, they're
familiar with the terms and conditions that went into individual
sales, not just published sale prices which may not reflect
various premiums, discounts and adjustments.
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