Do You Think I Can Get (fill in the blank) for My House?

This is probably one of the most common questions I’m asked. It’s usually arises when someone who is thinking about selling their Livermore, CA home has a number in mind that makes sense to them.  Here are some pricing expectations I’ve heard expressed by potential sellers, (with commentary in italics):

1)    What they would like it to be worth

Everyone wants to get the most of their home sale – who wouldn’t? But home values are subject to supply and demand, location, market trends, condition and desirability.  All of those factors must be considered in pricing a home.

2)    The amount of the outstanding mortgage, plus the profit they’d like to make

The cold hard truth is that a buyer doesn’t care what a seller ‘needs to get’ for  the home. A buyer does not want to pay more than a home is worth, dictated by what similar homes are selling for in the same area.

3)    An amount they remember seeing on a flyer in the same neighborhood

A home’s listed price only tells part of the story.  A neighbor’s home could have a larger lot, more square footage, numerous upgrades or an unrealistic list price. Knowing the particulars (size, actual sales price and date sold, along with specific information about the house) is crucial to assessing the likelihood of a similar sales price.

Buyers and sellers attitudes have shifted greatly from 5 or so years ago. When homes were appreciating quickly and inventories were low, buyers were willing to pay over asking prices and sellers were ecstatic – their homes sold quickly and with multiple offers, usually over list price.  Now that home prices have gone done in most areas, and stabilized in others, both sides are a bit more cautious.

In either type of market, once the decision to sell is make, it’s time to take a realistic look at the market as it currently exists. 

HERE ARE THE FACTORS TO BE CONSIDERED WHEN SELLING YOUR LIVERMORE OR TRI-VALLEY HOME:

1)    First, we examine comparable properties in the same neighborhood, preferably of a similar size and configuration, and within a recent time period. 

2)    If few exist, we look for comparably sized homes, of similar age and condition.

3)    Average time on market is also a consideration, as is current inventory (competition).

4)    Additionally, other more subjective aspects are assessed, such as desirability of neighborhood, lot location within a development, schools, and other positive or negative impacts.

5)    And of course, supply and demand. Time of year can be influential in terms of competing homes for sale, or the number of buyers in the market at a given time.

6)    And finally, the appraisal.  The majority of homes are purchased with a loan, requiring an appraisal.  If a home appraises for less than the list price, the buyer will not likely want to pay more for it, nor will the lender let them.  If it’s an all cash transaction an appraisal may not be required, but a buyer may still elect to have one performed.

One of the things that can take a seller by surprise is the time factor. In some cases, sellers begin gathering information about a home sale far in advance of their actual on-market date. It will be important to re-visit the market data again, just before the listing hits the MLS.  Recent or pending sales as well as new active listings and time on market can change the picture entirely.  If inventory rises or falls, especially in the subject neighborhood, expectations must be appropriately adjusted.

If you are considering a sale of your Livermore or Tri-Valley home, take the time to gather the facts to help you in your decision.  I’d be happy to provide you with a detailed, comparable market analysis for your property.