Dear Seller(s) - Do You Remember???

By
Real Estate Agent with BVO Luxury Group @ Keller Williams Arizona Realty BR534744000 & BR540649000

Dear Seller(s),

 

 

Do you remember when you purchased your current home as new construction?

 

Do you remember that there were "standard" floor plans to choose from, and then "options and upgrades"?

 

Do you remember there were "standard" lots, with little or no "lot premium", and that there were larger and or "preferred position" lots that came with a "lot premium" - sometimes a hefty "lot premium"?

 

Do you realize that when you selected "options and upgrades", and perhaps a lot that came with a "lot premium", you made those selections for you, and that not every Buyer would have made the same choices?

 

Do you realize that depending on which "options, upgrades and lot location" you selected, you will have limited the prospective Buyer pool when you go to sell the property to those that would have made the same, or similar choices that you did?

 

Do you realize that there may well be other Buyers interested in the property floor plan, but really don't care so much about the options, upgrades and lot location, and therefore their offer will reflect their interest in the property, but not so much the options, upgrades and lot location?

 

Do you realize that you are highly unlikely to recoup the costs of the options, upgrades and lot premium when you sell the property because these options and upgrades purchased through the builder are not the lowest priced way to go - but it beats paying cash for them after the purchase?

 

Do you realize that when you made additional "modifications" after the purchase, you did so at the time because that's what you wanted, not because you thought - aha - if I do this - a Buyer will "reimburse" me for the expense when I go to sell the property?

 

Do you realize that while some additional value may be forthcoming at the time of re-sale, you should never count or expect it to be a complete "reimbursement" of what you "put into the property"?

 

Do you realize that when you talk with a Listing Broker about selling your home, that you are likely to be met with raucous laughter when you explain to them that your list price MUST be based on what you paid for the property, what you put into the property afterwards, and what you MUST have left over after all expenses of the sale and paying off your loan(s)?

 

When you are contemplating selling your property, where are you going to move to?

 

Are you going to be purchasing new construction or re-sale?

 

If re-sale, is your offer on a property going to be based on what the Seller paid for it, plus what they out into it, plus what they owe on it, and what they MUST net from the Sale?

 

If not, why would you really expect that a Buyer of your home would think differently when making an offer on your home?

 

Here is the key question you MUST ask yourself and MUST answer before deciding whether or not to put your property on the market.

 

Do you really want to sell your home?

 

No - it's not optional to equivocate here.

 

Do you want to sell it - or not?

 

Do you have to sell it - or not?

 

If the answer is, you really want to sell, or you really have to sell, then recognize that the market will buy your house - for "market price".

 

 

If the Buyer is using financing, then a slew of other "players" enter the arena, and you have to sell it to all of them, or no deal.

 

The Appraiser, and depending on the type of loan, the Appraiser may even stipulate certain "repairs" before it can move forward!

 

The Lender.

 

The Underwriter.

 

It's a simple choice.

 

Really.

 

 

You can price the property where the market has demonstrated an interest in other similar properties, get it under contract, and move towards a smooth closing, allowing you to move forward with your goals that were/are dependent on the sale.

 

Or, you can wait for the market to "appreciate" to the point your list price is now in line with the market.

 

How many years will that take?

 

Will it ever happen?

 

Why not accumulate the equity in a new home where you want to be, rather than wait and hope to accumulate equity in the current house?

 

If you want to Sell - then Sell.

 

If you you have any equivocation at all about some sort of rationale that means you "should" get more than the market will bear, then don't bother trying.

 

It isn't going to happen.

 

Really.

 

It's just that simple.

 

 

 

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About the Authors - Updated 2018

If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with the BVO Luxury Group @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.

Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!

Tony Marriott - Chief Operating Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Suzanne Marriott - Chief Technology Officer - BVO Luxury Group @ Keller Williams Arizona Realty

Associate Brokers, REALTORS
BVO Luxury Group
Keller Williams Arizona Realty
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Show All Comments
Rainmaker
663,152
Mike Bjork
American Pacific Mortgage - Redondo Beach, CA

Yup, sometimes Sellers must learn the HARD reality of the Market.  It's not always what they want for their home, but what the Market is willing to pay.

Nov 15, 2016 01:32 AM #1
Rainmaker
304,750
Steffy Hristova
HomeSmart Elite Group Tempe AZ Tel: 480-966-9353 - Tempe, AZ
Tempe AZ Realtor - Your Home Close to Your Work!

Tony and Suzanne, you are so right when you phrased it "a complete re-imbursement of what you put into the home". This has little relevance to the market price.

Nov 15, 2016 01:53 AM #2
Rainmaker
1,449,870
Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC
Waters Realty of Brevard, LLC - Rockledge, FL
... a small office, delivering big service!

That is it... the market does not care what was paid.  Beauty may be in the eye of the beholder but value will always be in the eye of the buyer.

Nov 15, 2016 02:54 AM #3
Rainmaker
849,537
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

During financing, I like the way you say there are a slew of others you have to sell. !!! This is so true and never really contemplated. 

Nov 15, 2016 05:28 AM #4
Rainmaker
2,408,333
James Dray
Fathom Realty AR LLC - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Tony and Suzanne Marriott, Associate Brokers , I run into that when dealing with engineers.  I think they have a little black book with all the money they put into it even changing light bulbs....  LOL

Nov 15, 2016 07:07 PM #5
Rainmaker
2,884,254
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Absolutely Mike Bjork - thanks for stopping by with a comment!

 

Nov 15, 2016 10:56 PM #6
Rainmaker
2,884,254
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Agreed Steffy Hristova - thanks for stopping by with a comment!

 

Nov 15, 2016 10:56 PM #7
Rainmaker
2,884,254
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Right on target Gary L. Waters, Broker Owner, Waters Realty of Brevard, LLC - thanks for stopping by with a comment!

 

Nov 15, 2016 10:57 PM #8
Rainmaker
2,884,254
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

The Taming of the Slew Sheri Sperry - MCNE® - thanks for stopping by with a comment!

 

Nov 15, 2016 10:57 PM #9
Rainmaker
2,884,254
Tony and Suzanne Marriott, Associate Brokers
BVO Luxury Group @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

Indeed they must James Dray - thanks for stopping by with a comment!

 

Nov 15, 2016 10:58 PM #10
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Rainmaker
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Tony and Suzanne Marriott, Associate Brokers

Serving Scottsdale, Phoenix and Maricopa County AZ
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