Here is an important blog for home sellers and listing agents to consider when determing a far list price. The listing price is not determined by how much your seller owes, (but you do need to know this information to determine if they are upside down, and may need to consider a short-sale, also be sure you ask if they are current or behind on their mortgage payments) or from an appraisal even if it was done just a few months back.
Recent home improvements while they may add value, the home seller cannot expect a dollar for dollar return. Kitchens and baths will add the best return on investment amount, but finished basements, and add on rooms will not return a seller the amount they spent for the upgrade.
Be sure that your sellers have the home market ready and have a "wow factor" when determining the sales price! You have to be priced better than your competition or at least a good as the other best homes on the market, and certainly much better than the ones that are overpriced and not selling.
Home buyers are only willing to pay what other similiar homes have sold for recently. They will not overpay especially in this market and if you price your home at the top of the market, you are only helping your competition.
If a seller has to be somewhere else in 3 months or so because of a job move, by all means, do not let that home sit vacant on the market. Price it to sell.
Actually, every seller should consider this.....What will it take to get an offer on my home within the next 30 days? Any home price that does not accomplish this goal, will lead to a lower net sales price when it comes to the closing. Why? Because days on the market will lead to a lower sales price in a declining real estate market, among other factors.
It is time for all agents to know their market numbers! How many homes are on the market? What price ranges are selling the best? How many homes in different prices ranges are selling each month? What is the average days on the market in your area? Where is the new construction in your area? What price range of new homes are selling? How many inventory homes are the builders keeping on hand? How many new homes are they selling each month?
Anyway, it is a great day to be in real estate and it is full of opportunity!
Please enjoy the blog below!
Every time I sit down with a potential listing client, I wonder how they came to the decision that their home is worth a certain amount.
I think it is worth noting that your desired sales price shouldn't necessarily be the price you list your home at. It is a good idea to leave a little wiggle room to make sure you don't dip below the sales price that you want when negotiating.
Here is a list of the most relevant factors that determine your sales price.
Comparable Sales of Other Homes
Again, sales price is different than listing price, so keep in mind that the price you saw on your neighbor's flier probably isn't the price it actually sold for. You should contact your Realtor to get a list of the homes that have sold in the past 3-4 months. When looking at these sales, keep in mind that you probably aren't comparing apples to apples, but it will give you a starting point.
I'll caution you on this one. I have had clients think that just because they added tile or a covered patio, that their price has gone up some extreme amount. That may or may not be the case. Remember that home improvement trends are trends, and they come and go. Just because you like tile doesn't mean that everyone does. Home improvements can actually depreciate the sales price of your home.
Read the other 3 crucial things that determine your sales price at our Las Cruces Real Estate Blog.
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