Charlotte
Realtor®
Offers SELLER TIPS, Part 1:
PRICING
Congratulations! You've just signed that listing agreement and are now looking forward to the Offer that gets you moving on with your life! You've signed an agent who you KNOW is going to get the job DONE and done professionally. You've gotten your home ready to have potential Buyers and their agents come through...
Some real estate agents choose to either list property or represent buyers. Some agents love doing both--I am one of those! I absolutely LOVE selling homes but, I also LOVE showing off our gorgeous world-class city! With a history of working as a homecare nurse, I learned this city oh, so well! So, I enjoy keeping my hands on both sides of the transaction because I can keep a pulse on what Buyers are looking for in homes that my Sellers are attempting to sell.
When
a Buyer contacts me to show them homes in particular neighborhoods (or
Charlotte in general), their four top 'qualifications' are as follows:
1. Price point
2. Total Bedrooms & Baths
3. Total Square Footage
4. School Zone
Let's address the first priority FIRST: price. Location used to be the premier point for the sale of a home but, in recent months, price has become top priority. Here are a few of the Seller 'myths' that have come to light recently--avoid these at all costs!
MYTH:
As a Seller, I can 'dictate' the sales price and am quite
confident that I will get multiple Offers on my home.
FACT: Sellers should work hand-in-hand with their selected listing agent to establish a price. The days of multiple Offers are on-hold unless you have a home that you're simply giving away or a dream home that several Buyers have had their eye on for some time! Using recent sales, comparables are reviewed with great attention to detail--you simply MUST not overprice your home or you'll wind up a very unhappy homeowner!
MYTH: I love my home
just the way it is! I'm sure I can get more than my neighbor
got a year ago for their home!
FACT: In 2008, you must visit comparable homes in your area to see what the competition is offering for their price. If you can't beat those homes on price & appearance, you're going to have to wait your turn for a sale. Your home MUST be priced competitively.
MYTH:
The homes in my neighborhood are listed at $_______!
FACT: Property VALUE is not the list price--If you want, you can list your $350K home for $1,000,000--that is IF your agent will list it for that for you! The point is, we're comparing recent SALES to establish your price, NOT list prices. Property is only worth the price that someone is willing to PAY for it!
MYTH:
Two years ago, the Jones' got $_____ for their home!
FACT: Just as lenders have increased pressure to do their due diligence for new mortgages, appraisers are feeling the pressure as well. The rule-of-thumb is to use sales that occurred in the last 6 months, either within the same neighborhood or under one mile away. Their goal is to get as close as possible to square-footage, garage size, number of bedrooms, baths, lot size, basement or not, exterior construction and condition of the home (these are the main criteria). So, you're no longer comparing your home to your neighbor's that sold two years ago!
MYTH:
Other in my neighborhood have sold for $_______.
I've spent
an additional $_____ to have my walls faux painted, deck restained,
landscaping and a pool dropped into my backyard. I expect to
recoup every dollar spent on those items.
MYTH:
They're building million-dollar homes right behind me and my
$350K home's value has surely increased due to the new expensive homes!
FACT: Actually, for some aging homes, this can prove to be more of a detriment than a benefit to your home value! Your home could completely lose it's value, and the land that it's on may become the only value to your property. That million-dollar neighborhood is looking to expand and developers are not going to pay for that new kitchen that you just installed--they're only going to want your LAND and your property value will reflect only that price.
As a Seller, you must take the emotion out of the process of pricing your home. Keep in mind that this is a business transaction and NOT a personal one! Yes, it's personal because it's possibly your childhood home, or your children's childhood home or the home in which you were married--but, that doesn't matter to your Buyer! They are looking at this as their new home and as an investment.
You should consult an expert--a Realtor® can help you pull your comparables. If there is any uncertainty in the available list of SOLD homes (or lack thereof), consult an appraiser. Tweak your price and be prepared to make final adjustments if you don't receive an Offer in a timely fashion.
Price point has become the #1
most important factor in listing a home.
IMPORTANT TIP: Don't try to 'save' money by listing with an agent who ONLY lists your home in MLS for a fee and turns it over to you to do the rest! These agents have absolutely no incentive to help you price your home correctly as once your property is in MLS, their job is DONE! You are then in command of the remainder of the transaction. Unless you're a former real estate agent in your state, you're doing yourself an injustice--your home MAY go under Contract but, if it doesn't appraise and you have no 'counsel' to assist you with your negotiations, you could not only lose the Buyer but, precious time off of the market while under Contract. This leads new potential Buyers to skip over your home because they fear that something is 'wrong' with your home due to the length of time on the market compared to others in your neighborhood that were listed by qualified agents.
Congratulations! You've just signed that listing agreement and are now looking forward to the Offer that gets you moving on with your life! You've signed an agent who you KNOW is going to get the job DONE and done professionally. You've gotten your home ready to have potential Buyers and their agents come through...
OR HAVE YOU?
Some real estate agents choose to either list property or represent buyers. Some agents love doing both--I am one of those! I absolutely LOVE selling homes but, I also LOVE showing off our gorgeous world-class city! With a history of working as a homecare nurse, I learned this city oh, so well! So, I enjoy keeping my hands on both sides of the transaction because I can keep a pulse on what Buyers are looking for in homes that my Sellers are attempting to sell.
When
a Buyer contacts me to show them homes in particular neighborhoods (or
Charlotte in general), their four top 'qualifications' are as follows:1. Price point
2. Total Bedrooms & Baths
3. Total Square Footage
4. School Zone
Let's address the first priority FIRST: price. Location used to be the premier point for the sale of a home but, in recent months, price has become top priority. Here are a few of the Seller 'myths' that have come to light recently--avoid these at all costs!
MYTH:
As a Seller, I can 'dictate' the sales price and am quite
confident that I will get multiple Offers on my home.FACT: Sellers should work hand-in-hand with their selected listing agent to establish a price. The days of multiple Offers are on-hold unless you have a home that you're simply giving away or a dream home that several Buyers have had their eye on for some time! Using recent sales, comparables are reviewed with great attention to detail--you simply MUST not overprice your home or you'll wind up a very unhappy homeowner!
Your property will NOT
sell if it's overpriced.
MYTH: I love my home
just the way it is! I'm sure I can get more than my neighbor
got a year ago for their home!FACT: In 2008, you must visit comparable homes in your area to see what the competition is offering for their price. If you can't beat those homes on price & appearance, you're going to have to wait your turn for a sale. Your home MUST be priced competitively.
MYTH:
The homes in my neighborhood are listed at $_______!FACT: Property VALUE is not the list price--If you want, you can list your $350K home for $1,000,000--that is IF your agent will list it for that for you! The point is, we're comparing recent SALES to establish your price, NOT list prices. Property is only worth the price that someone is willing to PAY for it!
MYTH:
Two years ago, the Jones' got $_____ for their home!FACT: Just as lenders have increased pressure to do their due diligence for new mortgages, appraisers are feeling the pressure as well. The rule-of-thumb is to use sales that occurred in the last 6 months, either within the same neighborhood or under one mile away. Their goal is to get as close as possible to square-footage, garage size, number of bedrooms, baths, lot size, basement or not, exterior construction and condition of the home (these are the main criteria). So, you're no longer comparing your home to your neighbor's that sold two years ago!
MYTH:
Other in my neighborhood have sold for $_______.
I've spent
an additional $_____ to have my walls faux painted, deck restained,
landscaping and a pool dropped into my backyard. I expect to
recoup every dollar spent on those items.
FACT:
You absolutely
WILL not recoup every dime that you spent on improvements!
Kitchens and baths bring the most return on investment but,
sometimes other work done or additions made can actually DE-value your
property. Everyone does not like faux painting--especially in
bold colors. Everyone does NOT want a pool and you will
certainly
not receive a dollar for dollar return for pool installation.
MYTH:
They're building million-dollar homes right behind me and my
$350K home's value has surely increased due to the new expensive homes!FACT: Actually, for some aging homes, this can prove to be more of a detriment than a benefit to your home value! Your home could completely lose it's value, and the land that it's on may become the only value to your property. That million-dollar neighborhood is looking to expand and developers are not going to pay for that new kitchen that you just installed--they're only going to want your LAND and your property value will reflect only that price.
As a Seller, you must take the emotion out of the process of pricing your home. Keep in mind that this is a business transaction and NOT a personal one! Yes, it's personal because it's possibly your childhood home, or your children's childhood home or the home in which you were married--but, that doesn't matter to your Buyer! They are looking at this as their new home and as an investment.
You should consult an expert--a Realtor® can help you pull your comparables. If there is any uncertainty in the available list of SOLD homes (or lack thereof), consult an appraiser. Tweak your price and be prepared to make final adjustments if you don't receive an Offer in a timely fashion.
Price point has become the #1
most important factor in listing a home. IMPORTANT TIP: Don't try to 'save' money by listing with an agent who ONLY lists your home in MLS for a fee and turns it over to you to do the rest! These agents have absolutely no incentive to help you price your home correctly as once your property is in MLS, their job is DONE! You are then in command of the remainder of the transaction. Unless you're a former real estate agent in your state, you're doing yourself an injustice--your home MAY go under Contract but, if it doesn't appraise and you have no 'counsel' to assist you with your negotiations, you could not only lose the Buyer but, precious time off of the market while under Contract. This leads new potential Buyers to skip over your home because they fear that something is 'wrong' with your home due to the length of time on the market compared to others in your neighborhood that were listed by qualified agents.
Read my "Dear Seller" article here.
About the author:
Debe Maxwell is a Charlotte Residential
Real Estate Broker, Certified Neighborhood and Relocation Specialist
who can assist you with the purchase and/or sale of real estate in
Charlotte NC or any place in the country by connecting you with a
relocation professional in your destination of choice. Debe has created
a team of professionals throughout the country to ensure that you
enjoy a smooth transition to your new area. These professionals are
experts in the field of relocation and can serve many purposes beyond a
simple home search. The destination service is of no cost to you!
Please visit www.TheMaxwellHouseGroup.com
for your relocation and/or your local needs.
If you're interested in speaking with a local expert in home pricing and selling, call or email Debe! Ask for a free consultation & market analysis of your property today!
Debe Maxwell- HELEN ADAMS REALTY - 704.491.3310 - Debe@DebeMaxwell.com
Copyright
© 2008 By Debe Maxwell, All Rights Reserved...
*Charlotte Realtor®
Offers SELLER
TIPS, Part 1: PRICING*
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