So … the time has come when you either want to, or you have to sell your home. The biggest problem that you, the homeowner faces when placing your home on the market for sale – is the price.
First, let us be blunt, and admit that all homeowners believe that their houses are worth much more than anyone else’s house. Come on – be honest - it seems we all have an over-inflated view of the value of our house.
Second, here are a few important, if not critical ideas to keep in mind when considering a listing price for your home. Your focus needs to be redirected to understand how potential buyers will determine the value of your home in their eyes. To do this effectively, consider those times when you are the consumer, and you go out into the marketplace to purchase an item. Chances are high, that if the price of the item is above a few hundred dollars, you will engage in the act of comparison shopping. Well, guess what! Buyers do exactly the same when searching for a new home – so think about how you would view your home, if you were the buyer.
Once we can remove our egos and the emotional drama from the process, it is easier to see that there are only two key elements that determine value of your home – and they are, price, and the offerings, otherwise known as the features and benefits. Now, before you go off searching the attic for receipts in proof for all of the upgrades and repairs made to your home, let us not forget that the home buyer will be comparing these two key elements of your home against those same for your neighbors. Meaning that if your home offers the same features and benefits as your neighbor, and yet yours is offered at a higher price, well then … your house will sit on the market for a little while longer. On the other hand, if the price of your home and your neighbors’ are equally the same, however, your neighbor’s home offers more features and benefits, well then … again your house will sit longer on the market.
So, unless you are going to add more features and benefits, which by-the-way is not a good idea, price becomes the key swing factor. Besides, most buyers would much rather not pay a premium for your personal taste in decorating. Also, do not get confused – roof and carpet replacements, painting, and other repairs are not improvements or upgrades – they are simply expenses to bring your house up to selling standards.
The key to selling your home quickly and to have the advantage to decide from multiple offers, is to list your home at the right price. If within the first 2 to 3 weeks of the listing, or if after about 5 to 10 showings of your house, you are not receiving offers, then your home is overpriced. This market would be more strongly characterized as a buyer’s advantage, and as such, it would be prudent to not expect that you will find the lone, uninformed buyer, willing to overpay.
Although the listing price of property is the decision of the homeowner, most Real Estate agents will be able to suggest a selling price for you. Be cautious of any Real Estate agent who cannot provide you with a detailed comparative market analysis, or one who has not taken the time to make value adjustments for comparative properties. Average prices per square foot are a good indicator for pricing, only if they are based on competent valuations, and are not just simply a 3 minute exercise in arithmetic. I spend several hours in research and calculations by using 3 different valuation methods to feel comfortable and confident that the result is credible and supportable. It is also important to know that the Real Estate agent is not responsible for the price of your home – the market is.
We often deal with homes priced between $800,000 and $8,000,000. In many situations it is well worth the cost range of between $350 to $500, to order a professional appraisal before listing the property.
You owe it to yourself to hire the right Real Estate agent for the job of selling your house. Give me a call, or send me an email so that I can provide you with the action plan needed to sell your home, at a price that will attract offers, and on a schedule to meet your goals. We also preview new listings every week to sharpen our knowledge of the inventory and pricing.
Contact us soon - and let us apply for the job of being your Real Estate agent.
Charles M. Schevker (CPA)
DRE # 01875556
Broker Associate
Prudential California Realty
(858) 449-8250
1299 Prospect St.
La Jolla, CA. 92037
http://www.San-Diego-Cal-Homes.com
http://www.linkedin.com/in/charlesschevker
http://www.sandiegocalhomesdotcom.wordpress.com/
http://sandiegojewishrealtor.com/
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