I'm Sorry Mr. & Mrs. Seller, Your Home is Only Worth.....

Reblogger Josette Skilling
Real Estate Agent with Keller Williams Capital Properties

We are seeing a lot of posts around this very subject lately.  Seems like a lot of folks are not looking carefully at the data to support their pricing desires.  The market is what it is when you decide to sell.  If you want a higher price, then improve condition to the point the house will command it.

Original content by Dawn A Fabiszak EA1321548

I'm Sorry Mr. & Mrs. Seller, Your Home is Only Worth... ~

This post was inspired by a newer agent in my office.

First of all Mr. & Mrs. Seller, a market analysis is not an appraisal.  It is a picture of the current market conditions based on sold properties in a designated area.  Sold properties are used in an analysis because homes do not necessarily sell for their list price.  The value of a home is what it actually sells for, notfor what it lists.  I will do a CMA (comparable market analysis), before listing your home to find the proper pricing for it.  (We don't just make up a number off the top of our heads, at least I don't.)  And a home is not worth what you, Mr. & Mrs. Seller, need to pay off your bills.

My search criteria for a CMA, preferably, is in the same subdivision, same style of home, sold within the last 6 months (or if there are too many properties to use, then I narrow this down to 4 months), within 100 sq ft smaller or larger than your home and approximately the same age.  This is my starting point.  I will then tweak my criteria from there.  Yes, I do use bank owned and short sales in the mix, but I will adjust for pricing since they usually sell for up to 30% lower than a straight sale.  In my report for you, I will also include active listings since they will be your competition.  And I will also include a list all of the homes currently under contract/pending, since these will most likely be some of the comparisons that the appraiser will be using to aprraise your home.  So you see, what you owe on your bills does not factor into the pricing of your home.  I'm sure this makes absolute sense to you.  You are intelligent folks, so I am certain you will not mix the two.

The way I come up with a price range to sell your home, I use a CMA program.  Active Reality Solutions is the program I use.  It was written by a local REALTOR here in Denver.  It allows me to make adjustments to the comparable homes for condition, upgrades, views, age, sq ft, garage spaces and more.  I am also able to 'correct' the incorrect information that the listing agent may have missed or incorrectly entered into the MLS system.  I make the adjustments to the comparable sold signhomes by assigning a dollar value for the differences, to make those homes more similar to your home with the same options and upgrades.

Now that I have explained this to you, you can see why your home's value is only between $245,000 and $252,000, not $280,000.  If you were to list your home at $280,000, you will only be helping the competition sell their home first.  If you were a buyer and I showed you this information, would you buy your home, or would you buy one of these other homes for $30,000 less?  I'm sorry Mr. & Mrs. Seller, your home is only  worth....

If you live in the Denver metro area and need a professional REALTOR to properly price your home to sell, I am available to help you.  I am in the busness to sell your home, not just list it.

 

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Keller Williams Real Estate, LLC

Broker Associate, CNE, CRS, GRI, SFR

Servicing buyers and sellers in the Denver metro area since 1993

Three easy ways to contact me:

email me directly Dawn@downhomeindenver.com

visit my website to search for homes or find the value of what your home is currently worth visit: www.DownHomeInDenver.com

call or text me directly on my cell: 303-332-8025

The choice is yours.  Let my expertise work for you!  Servicing the Denver Metro area/ Aurora, Centennial, Denver, Englewood, Greenwood Village, Littleton, Lonetree and Parker

 

                                              

 

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Ambassador
841,893
Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

The sad facts are that homes cannot be built today for what they are selling for. What a seller needs to get has no bearing on the market. A sad but correct post

Dec 17, 2010 01:40 AM #1
Rainmaker
570,735
Bob Jakowinicz
National Realty Centers Livonia--Bob Jakowinicz - Livonia, MI
Michigan Real Estate Agent-- MI RE Adventures

No doubt this is on about every listing appointment now.  As long as we are honest up front and don't say we can get something we can't the problems stay away.

Dec 17, 2010 01:42 AM #2
Rainer
56,791
Tommy Taylor
Taylor Properties & TexasForSale.net - Kerrville, TX
CNE- Texas Hill Country Realtor

Well spoken- too many agents let sellers tell them what they want to list the home for and never prepare a CMA. I have turned down more listing this year than ever before, due to sellers over pricing their properties. I, like you, am in the business to sell properties, not waste everyone's time and efforts on an overpriced property.

Dec 17, 2010 01:47 AM #3
Rainer
146,975
Gary Pike
Better Homes and Gardens Real Estate Metro Brokers - Powder Springs, GA

Thanks for re-posting this, it's great information.  I have also turned down over a dozen listing, and was thankful on a handful more that I did not win their business, because the owner's had to sell at a higher price then was possible.  Each of those homes, if they haven't gone into foreclosure, are still on the market and still overpriced after some price adjustments.  We do a great disservice to people when we allow them to tell us what to list their home at knowing it will not sell.

Dec 17, 2010 02:19 AM #4
Rainmaker
642,656
Dawn A Fabiszak
Private Label Realty ( Denver metro area, Colorado - Aurora, CO
The Dawn of a New Real Estate Experience!

Josette ~ thanks for the re-blog.  The market is what it is, nothing more, nothing less.

Dec 17, 2010 08:15 AM #5
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Rainmaker
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Josette Skilling

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