THE MARKET VALUE OF YOUR HOME IS DETERMINED IN SEVERAL WAYS:

By
Real Estate Broker/Owner with Maui Life Homes / Metro Life Homes RS-78439 / BRE #01708344

The market value of your home is not:

• What you have in it

• What you need out of it

• What it is appraised for

• What you heard your neighbor’s house sold for

• What the tax office says it is worth

• What it is insured for

• Based on memories and treasures

• Based on prices of home where you are moving

The true market value of your home is….what a Buyer is willing to pay for the property TODAY:

• Based on today’s market

• Based on today’s competition

• Based on today’s financing

• Based on today’s economic conditions

• Based on the Buyer’s perception of property condition

• Based on location

• Based on normal marketing time

 

 

As a seller, you control:

• The price you ask

• The condition of the property

• Access to the property

 

As a seller, you do not control:

• Market conditions

• The motivation of your competition

• Value

 

Warning Signs:

AGENT Elimination – If agents are not previewing or if they preview but do not show your home, they are eliminating your property

BUYER Elimination – If your home is being shown repeatedly with no results, buyers are finding better properties in your price range. In either case, this is an indication that your home is not priced at current market values.

Remember: Price Overcomes all Objections!

Comments (38)

Ralph Gorgoglione
Maui Life Homes / Metro Life Homes - Kihei, HI
Hawaii and California Real Estate (310) 497-9407

Bill,

Chill, will ya.

Do you dislike music?

Just makes me wanna bust a move while I'm a birdie on the QWERTY.........

Jul 21, 2009 05:30 PM
Gerry Khatchikian
Red Lodge, MT
ASA, TRC, SFR

Ralph,

Great post and love the extra with the music playing while I read your post.   

Gerry's AR signature

Jul 21, 2009 06:05 PM
Anthony Vosilla
Tony's Appraisal Services - Centereach, NY

As Chuck said above....

PLAIN AND SIMPLE... with a twist of common sense.....a good combination and a great post..

Can I add your post to my web site....

 

 

Dan, I know that you were just kidding around with your revolutionary thoughts, but several years ago many people felt that was true..

 

 

Jul 22, 2009 02:06 AM
Lora "Leah" Stern 914-772-4528
Coldwell Banker, 170 N Main Street, New City NY 10956 - New City, NY
Real Estate Salesperson

Great blog.  I always tell my sellers that my job is not to tell them what their house is worth, but to tell them what it takes to get it sold and this list is a great reminder of how to get the point across!

Jul 22, 2009 02:11 AM
Anonymous
Julie Jones

Excellent!  I have that very same info, format, content in my prelisting presentation-EXCEPT the very last tidbit.  May I copy your last section and include in my prelisting presentation?

Jul 22, 2009 02:25 AM
#25
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

This is an excellent and very true post.  Ralph, thanks.  I hope you don't mind but I reblogged this one.

Jul 22, 2009 02:46 AM
Ralph Gorgoglione
Maui Life Homes / Metro Life Homes - Kihei, HI
Hawaii and California Real Estate (310) 497-9407

Anthony - sure, go ahead.  I checked off the blog to allow re-posts on this.

Jul 22, 2009 03:08 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

I have an appraisal issue going on where my buyer has offered over the appraised price, not much over.  I have pointed out we are in an up market, the appraisal is conservative and assumes a down market.  Then I sent them a list of what is on the market and asked them which one the might prefer and suggested we take a look at it.  The house has features that are real important to them, that are not important to a lot of other people.  The wife does not drive and it is near the store, school, and public transportation.  They need to think about what it is worth to them.  We were out bid on a number of other homes.

Jul 22, 2009 03:54 AM
Sue Eller
Realogics Sotheby's International Realty-Sequim - Sequim, WA

Hi Ralph,

 On my way to a listing appointment in Mt. Washington and this post was very timely!  Hopefully I can get him to see the light.

Thanks for the insightful post!

Sue Eller

Dilbeck La Canada CA

Jul 22, 2009 04:46 AM
Caterina Platt
Evergreen Appraisals & Realty - Los Lunas, NM

Dear Ralph,

This appraiser is clapping!  the ..'what it appraised for..' could be the last time they refi'd two years ago, or it could be that they hired Skippy the Value Wizard just last week. 

You are right on with this.

Gene,

Would that be Brentwood, CA?  You may indeed be in an up market depending on the neighborhood and your value ranges.  Did the appraiser supply active listings and pending contracts in the report as well as sold/closed?  If it is indeed on the upward trend, this info (properly chosen, of course) can support just such a trend.  You can't include Mr. Pie in the Sky down the street or the short sale/relocation and hope for good results in listings/pendings if your subject is an arm's length or vice versa. 

Have you seen the report?

 

 

Jul 22, 2009 05:08 AM
Anonymous
Forrest Arnold, Certified EcoBroker

Great post--Real brief--to the point--end of story.

(But really, Folks, I love how crisp and to-the-point this was & a potent reality check for Sellers during these tough times. Such reality gives both Seller and Broker a real chance to succeed in the sales effort --- vs. creating mutual frustration amd lost time.)

You da man---  Forrest   EcoBroker in Hawaii    www.hawaiigreenrealty.com

PS: With our work as EcoBrokers, there may be another tip for green Sellers, "Don't Undervalue your Green features---but don't believe that Every Buyer will value them as you do".

Jul 22, 2009 05:33 AM
#32
Jamie King
Hoty Enterprises, Inc. - Huron, OH
Sandusky, OH

THANK YOU!  Boy, how I'd love to send this to the seller of one of the homes my buyer made a bid on.  They just don't have a clue.  My buyer offered slightly above market value but $9,000 less than the sellers WANTED.  But then it may not be all their fault.  Their agent has sold 1 (one) house in all of 2008.  Maybe it's He who does not have a clue.

Jul 22, 2009 06:13 AM
George Wilson
Lincolnton, NC - Lincolnton, NC

Great Blog & music. I may copy & insert into my listing presentation to add to my point that in today's market you can't always get a return of 30% on your upgrades. Seems I always find a seller whose cousin, uncle or what ever says they can get $ xxx amount for doing this or that update/upgrade.

As for appraisals, has anyone run into the Zillow/Cyberhome valued listing? When ever I've asked did they go in and update the home info & comp selection to make it relevant?; they answer "No why should I?" OH LORD HELP ME. LOL

Jul 22, 2009 06:40 AM
Anthony Vosilla
Tony's Appraisal Services - Centereach, NY

Gene said....

""" The house has features that are real important to them, that are not important to a lot of other people"""

 

This could be a major sticking point in your problem....I have no clue as to what is happening on the Left Coast so I am sure that Ms Platt's thoughts should prevail....

Jul 22, 2009 07:43 AM
Lyn Sims and the Blog Dog
Streamwood, Elgin IL Real Estate - RE/MAX Suburban - Bartlett, IL

Hate posts with tunes! Good material but didn't this once come with pictures?

Jul 22, 2009 09:32 AM
Ralph Gorgoglione
Maui Life Homes / Metro Life Homes - Kihei, HI
Hawaii and California Real Estate (310) 497-9407

Lyn,

I guess your the minority.

As you can see from responses, most enjoy it.

But it Doesn't matter, any press is good press..............

Jul 22, 2009 10:01 AM
R.E. Renée Hoover, Salesperson
Century 21 Geba Realty, Milford, PA; Licensed in PA & NYS - Milford, PA
Poconos, Pike, Wayne, Monroe Counties, PA; PA/NYS

My comment on another post about pricing a property too high - pricing a property too high helps other properties sell.  Ask your seller whose property it is he is trying to sell!

 

By any chance Ralph, have you done a post about how to upload music to posts? Love it! Love it! Love it!  It's fun and adds some stickiness - want to hang around to listen to the great tunes.

Jul 22, 2009 11:28 AM
Mike Henderson
Your complete source for buying HUD homes - Littleton, CO
HUD Home Hub - 303-949-5848

I didn't like the music either.  Guess what I figured that out after 10 seconds.  Problem solved.

You may play all the music you want this was brilliant.

Is this similar to the ninja selling program?  I was in a two hour class today where about 20 agents talked about this very issue.  You articulated perfectly.  An action item I made today was to put together a listing package.  This is going in it, do I need anything else? 

Maybe a contract.

Jul 22, 2009 08:58 PM
Anonymous
Rose Osman

Ralph, I'm glad to see you got some mileage out of the handout I gave you to good use !!!

Aug 19, 2009 05:59 AM
#40
Harry Logan
RE/MAX executives realty - Winnipeg, MB
Your Satisfaction is Guaranteed!

Hi Ralph! Thanks for sharing this Great advice! I liked it so much I reblogged it! Cheers! 

Jun 12, 2010 06:37 AM