Helping Sellers Determine a Fair Market Value

By
Real Estate Agent with Equity Fifty Five Realty, LLC

Here is good information for home sellers and listing agents to consider when determining a fair listing 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) what your sellers thinks they need out of the property or from a recent appraisal even if it was done just a few months back.

Home Pricing using a crystal ball

So How Much Is My Home Worth?


Well, if someone can tell you what is it worth to the exact penny, they must have a crystal ball!
My answer is...whatever the average home buyer today is willing to pay!

Yes, we can look at recent sales of "comparable homes" and study or view the active listings that appear to be of like style, quality, and features. And in the end the best we can do is give a close price range of low and high prices. That's because every house is different and unique and the real estate market is in a state of flux, with the good news and the bad news, with the higher gasoline prices and the lower prices.

Home buyers are only willing to pay what other similar homes have sold for recently. They will not overpay for a home, especially in this market. If you price your home at the top of the market, you are only helping your competition to sell.

 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.

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! No one wants to buy yesterday's donut and pay full price. They want the new fresh donut on the market.

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 day's on the market in your area? Where is the new construction being built in your area? What price range of new homes are selling the best? 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 opportunities.

Go and be a blessing to someone in need today!

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Rain Silverhawk 10/31/2010 09:27 AM
Topic:
Real Estate Best Practices
Location:
Illinois St Clair County
Groups:
Active Rain Newbies
Realtors®
Tags:
helping sellers to determine a fair market value for their home

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Rainmaker
4,041,155
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

What a great post!   I have said my crystal ball is at the dry cleaners!     But, if a home IS priced right, or a tad below, shows well, it WILL sell in the first 30 days, or less!

Oct 29, 2010 06:56 AM #1
Ambassador
1,153,892
Bryan Robertson
Los Altos, CA

It's up to the agents to make sure the sellers have a realistic expectation on pricing.  I always give my clients the reality check and if they don't like it, then it's not the time to sell.

Oct 29, 2010 07:04 AM #2
Rainmaker
1,310,724
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

I agree with you...opportunity is everywhere.    Your pricing advice, and saavy questions, to get the seller "on board" with the reality of now, are good scripts for all of us.   

Oct 29, 2010 07:32 AM #3
Rainer
471,309
Ted Tyrrell
RE/MAXCamosun (Chatterton) - Victoria, BC
Selling Homes in Beautiful Victoria

Yep, it's simple math.  If there are 40 homes on the market currently in a particular price range in a particular neighborhood and all other things being fairly equal, and the selling rate is 10 per month, you have a 4 month inventory.  Not difficult to figure that if you want your house sold in 30 days, Mr. Seller, you'd better price it such that yours will be one of the 10 that will go in the next month.  What do we have to do to get it there?

Oct 29, 2010 10:08 AM #4
Rainer
494,722
Lynn911.com ~ Dallas Real Estate Agent Top Team
Dallas Houses for Rent Dallas Apartment Rentals Lynn911.com - Dallas, TX

Paul this is a great blog !.... I have just posted tips on safety of Halloween for children and adults click here read Dallas Houses for rent, Dallas Apartment finder, Lynn911, Dallas Luxury Apartments For Rent Dallas Homes for Rent

Have a fun weekend !

Oct 30, 2010 09:33 AM #5
Rainmaker
436,868
Rain Silverhawk
Keller Williams Sandpoint rain@lakeandhomes.com - Sandpoint, ID
208-610-0011 Sandpoint Idaho Real Estate Realtor

Excellent post about helping sellers determine a fair market value. Something is only worth what you can actually get for it.  Thank you for taking the time to write this and share with us all.

Rain

Oct 31, 2010 09:28 AM #6
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Rainmaker
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Paul Walker

Scott AFB IL Area Realtor
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