Southern Litchfield County Real Estate.
Connecticut real estate has not yet caught up with the rest of the country despite what the national news says. I am sure there are some markets around the country that are doing well, and there are many that are like we are here in Connecticut. And yet there are some places in Connecticut that I hear are doing better than we are here in Southern Litchfield County.
The bottom line is, real estate is hyper local. Because of that, our local market might not be living up to the national news. Your house may not be worth what you hope it is, what you would like to get for it, or what you need to get for it.
I always take a deep breath before getting to the bottom line. It can be a very painful subject, I get that. I don't particularly like delivering what others consider to be bad news. But I feel that telling a potential seller the truth about the price of their home and the realtiy of our local real estate market is the only way to go.
The kiss of death! We just loved all your marketing, we really felt good about you, but not your price... so we listed with someone else.
It happens, and I get it. I may not like it but I do get it. Deciding who to list with based on the price can be a real recipe for disaster. A while back I was called out to to a market analysis on a home. The sellers were moving out of state so they needed to sell, no matter what. They hated my price. And they really disliked my answers when I justified my price.
But what about this house the other agent showed us as a comp? It sold over a year ago. Why are you so sure that the fact we don't have central air is a reason to reduce? This is a large, newer home. People expect central air. And because you have baseboard heat it will cost a buyer $10,000 plus to add central air. There was more, I saw where we were going. And the location is one that can be a really tough sell. With winter coming on I knew it was going to be even tougher.
Andrea, tell us the truth, what's our house worth?
When I am asked to get to the bottom line by a prospective seller, I often flash the scene in the movie "A Few Good Men" where Jack Nicholson yells "You can't handle the truth!" It sounds harsh I know, but the truth up front is far less painful to your wallet and sanity than being led down the primrose lane.
Next real estate agent please!
So they went with the higher price. It was $30,000 over my price. At over 200 days on the market and two agents later, the house sold at $5,000 less than my expected price. I was not surprised, but I bet they were.
It doesn't make me happy, of course I wanted the listing. But what I truly feel bad about is that they needed to sell quickly and didn't.
There are many factors to consider when pricing a home for sale, but these are the three most important.
- The local real estate market.
- The condition of the home.
- The location of the home.
I look at what is currently the competition and what has recently sold that is similar. Similar in condition, in size, similar amenities, similar neighborhoods.
The sale price of other similar homes will tell me what a bank will most likely lend on your home and what a buyer will most likely offer on your home.
If you don't like the price I give, I do apologize. I'm in the business of selling homes, not holding onto a bunch of listings that won't sell. And I don't enjoy getting a seller ready for the next agent either!
But can't we just price it higher because the buyers are going to offer far less anyway?
No, not a good idea. They won't find your house in their search. Buyers search a bit higher than what they can afford but putting your house in the wrong price range means buyers won't be finding it. Buyers have a keen sense of what they will pay for a house, of where the value is. And there is no law that says you have to accept an unacceptable offer! The word to remember is "negotiation"!
It might take both patience, luck and skill.
Lastly, there are some price ranges that just aren't moving here. If your house falls into one of those ranges, you are in for a wait. Hunker down and make sure your house is shown in the best light possible with the correct price, with great curb appeal and with fantastic marketing to attract those few and far between buyers.
If you want to know what your home is really worth in today's Southern Litchfield County real estate market give me a call at 203.460.1775.
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