But We Have Granite!
Pricing a home is as much art as science. Just ask Zillow! At first they were confident that with their algorithms and all the data that is available, they could price any home in the nation! Now they are much more sober - and somber!
This is a good post on pricing a home.
Phil
So you're giving thought to placing your home For Sale on the market and it's time to size up the competition. Looks rather simple..."we have hardwood floors, they don't...we back up to the woods and they have neighbors to look at from their deck...we don't have a fully fenced yard like they do, but we have granite counters and they don't. They're asking $310,000, so we should easily get $330,000 for ours." There, all done! Pricing a home...so easy, a caveman could do it (sorry Geico)!
Yep, this is where I rain on your parade. Not only is it not that simple...but it's failed logic! Even if the homes were identical with exception of the particulars mentioned above, it's still not going to work out quite so simple. There are two flaws in the above scenario:
- Assuming that upgraded finishes automatically translates to a higher fair market value of your home
- Basing a home's list price solely off of the other active listings in the neighborhood.
A local housing market such as Louisville's has the sales capacity to sustain healthy market conditions. For example, more than 1,000 homes went ‘under contract' in the Greater Louisville area in August 2010. As impressive as that statistic may be, we must also consider the more than 10,000 homes currently for sale in this market. So, we have a substantial amount of competition to consider when positioning a home to sell in Louisville.
Upgrades such as granite counters, hardwood floors & fully fenced yards do, without a doubt, add value to a home. However, this value typically serves to position your home ahead of like-homes comparable in size, construction & location. This added value won't necessarily warrant a higher list price...but should command in a higher sale price over those properties without, not to mention a quicker close to the sale!
If you are planning a move in the near future, you'll be in the buyer's shoes soon enough and this concept will become crystal clear to you. With such a rich selection of homes on today's market, there is no question that sellers today must make a compelling appeal to the buyer and ensure your home stands heads above the crowd!
Your home value consultation is only a phone call or e-mail away, so send out the invite and clear 30-45 minutes of your evening. You'll discover not only what your home is worth, but who's looking to buy your home now!
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