Pricing Your Home

Omaha Real Estate     Contributed by David Matney with Alliance Real Estate

I often meet with potential sellers and have to deliver some sobering thoughts on the price of their home.  Many sellers overlook that some homes will max out at a certain price no matter what other amenities the home has.  For example, a home with a 1 car garage or 1 bathroom.  A home with a one car garage or 1 bath will max out at a certain price no matter the condition or location with a few exceptions.

Sellers have to consider that buyers are looking at the entire market and not just the immediate area as well.  In our market, there are two volume builders that can build a 3 bedroom, 2 bath, 2 car garage homes in the $125,000 to $150,000 range.  This homes are NEW CONSTRUCTION and located in West Omaha.  True, some of these homes have some disadvantages such as "cookie cutter" homes, no trees, etc.  However, the builders understand that buyers want certain key amenities.  Some of these include a two car garage, at least a 3/4 bath and a walk-in closet in the master bedroom.

Recently I had a listing that had a three bedroom home with only a 1 full bath and a 1/2 bath in the basement.  This home also had only 1 car garage and was built in the early 1960's.  The home was in an established neighborhood with an average sales price between $105,000 and $115,000.  My client did a FANTASTIC job fixing the home up.  He had a ceramic tile floor in the kitchen, stainless steel appliances, all new woodwork and trim, updated bath with ceramic surround, 6 panel doors, new crown molding, the works. 

The mistake was the property was OVER improved for the area.  He did have a home that could easily be worth $125,000.  However, the property was located in a $110,000 neighborhood.  Buyers looking for a $125,000 home, look in $125,000 neighborhoods.  In fact, there are NEW construction homes less than 2-3 miles away for $115,000 to $130,000.  The issue with the home my client was selling was not the condition, it was the price. 

The home was listed in January for $125,000.  I informed my seller that we are too aggressively priced and that it would be a struggle to get that price.  SEVEN months later the home sold for $113,000 with $3000 in seller concessions.  Had the seller taken my advice on pricing it would have sold in less time and thus netting the seller more money in the end. 

Now, some homes even with a 1 car garage will easily sell for $175,000 to $200,000.  There is a neighborhood that even homes with a 1 car garage will command $175,000.  These are brick Tudor homes built in the late 1930's and early 1940's in the Country Club area.  These are beautiful homes that are LOADED with character and extensive woodwork.  I have sold several of these homes this year and they typically sell easily within the first 30 days. 

Thanks,

David Matney, CRS,GRI

Alliance Real Estate