Determining the best asking price for a home is one of the most challenging, and also important, aspects of selling it. In fact, it’s a balancing act. You don’t want to set a price that’s so high that it discourages showings and serious offers from the very qualified, motivated buyers who would ultimately determine your property’s top market value. On the other hand, you don’t want to set a price that’s so low that it attracts lots of interest, but sets the stage for offers and negotiations that could result in your getting less than the market would actually support if you were a little more aggressive.
Moreover, this balancing act is even trickier now, given that we’re in a buyers’ market that is fraught with a variety of economic uncertainties. All the more reason why, when you make your decision to sell, you should do plenty of research as well as seek out the advice of a real estate professional who understands the intricacies of pricing your house to sell.
So What’s Your Home Really Worth?
Simply put, your home’s value is not determined by you, but by what the market is willing to pay for it at a given time.
These days, the market increasingly includes home buyers who have researched property values over the internet for months, have already viewed at least 10 homes, and are not under any pressure to buy. Indeed, they may be quite hesitant in hopes of missing out on one of those unbelievable deals that continue to pop up.
In trying to determine your home’s true market value and, as such, set your expectations for what you’re likely to sell it for, you should:
Patrick Parker Realty will always provide you with a CMA as part of the listing presentation we show you when you consider one of our Realtors to represent you in the sale of your home.
Despite some pessimism pertaining to the global and domestic economies, the U.S. housing sector continues to show promising signs of stability and growth. Low levels of new home construction and gaining sales volume fueled by an inventory of affordable housing since Richard Nixon was president have reduced the number of homes on the market. This means home prices may begin to appreciate again.
While there are many factors that can be barriers to buying a home, such as the tightening of mortgage lending rules by banks, consumer confidence in the job market is among one of the top obstacles to home ownership. In the 2011 Housing Pulse Survey conducted by the National Association of Realtors, 80% of respondents cited job security as their primary concern when deciding to buy.
Home Sales
For only the fourth time since the beginning of 2010, home sales in August were up both year-over-year and month-over-month, posting an 18.6% gain from last year, with first-time home buyers accounting for nearly a third of all homes purchased. These indications of strength in the housing market may help to add to consumer confidence, which is an integral part of sustained growth. Even though there is still a long road to recovery ahead of us, there are opportunities to be had for both home buyers and sellers.
August home sales were up 18.6% year-to-year, posting a 7.7% increase in sales activity over July despite Hurricane Irene, which struck the Eastern seaboard and New England regions at the end of the month. As a result of the hurricane, the Northeast experienced the smallest increase in sales. At the same time, persisting restrictions among banks affecting home lending are having the greatest constraint on sales levels. NAR Chief Economist Lawrence Yun stated, “The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy.”
Home Price
Homes prices were down, with a 5.1% drop in August compared to a year ago. The national median price for homes in August was $168,300, with distressed properties, foreclosures, and short sales still accounting for 31% of sales. The buyer’s market for residential property continues, as favorable prices, and record low interest rates offer the most affordable conditions for purchasing a home in the last 40 years.
Inventory
The supply of homes measured in months on the market at their current pace of sales fell 10.5% in the month of August, to an 8.5 month supply of inventory, down from a 9.5-month supply in July. With homes being more affordable than they have been in a generation and the lowest levels of new home construction since World War II, this inventory is projected to continue to fall, which will eventually result in the appreciation of home prices and a move toward a balanced market.
As a seller, it is important to understand the current real estate market, and a real estate agent is there to guide sellers every step of the way. Agents can help sellers understand what the level of distressed sales and competition look like in their area. This way, they will be able to price their home right and will more than likely be able to attract attention from potential home buyers.
Ok, so you’re putting your house on the market. You know from the blogs you’ve read, the advice we’ve given you and just plain common sense… that first impressions count! Yes, there’s curbside appeal, home staging, all aspects that go into looking through the eyes of buyers with a mission of creating an emotional connection between them and your house… so they can see it as their next home.
But time is of the essence and you need to prioritize. Yes, you want to stage, yes you want to get to those less than manicured hedges. But before we strive for perfection we must get the home uncluttered. That, truly, is the first step you must take toward getting your home ready to show.
The more mountainous those piles of mail become and the more crowded your countertops get, the more exhausting decluttering your home can seem. But if you divide it into pieces, it won’t be nearly as daunting. Here, your week-by-week plan for a clutter-free home—minus all the hassle.
Week 1: Attack the Obvious
Begin with the area that’s motivated you to declutter in the first place. It’s likely that something has pushed you over the edge: that pile of unopened mail or the heap of clothes in the laundry room. “Whatever you do, don’t start with family heirlooms,” says Barry Izsak, an Austin-based certified professional organizer. “Go for items that you’ll feel good about cleaning out.” It will give you an immediate sense of accomplishment. The goal is to deal with that one area, not the whole room. Baby steps.
Week 2: Bathroom
Why? Same logic: You can quickly power through tossing bottles that you stopped using three hairstyles ago. Makeup should be tossed after a year. Toss every item that’s past its expiration date, and keep only as much as you have room for (it’s a bathroom, not a store). Your backups should be organized neatly in a linen closet, along with the extra toilet paper.
Week 3 & 4: Public Rooms
Perhaps you’re embarrassed by all the DVDs, video games and newspapers scattered around your living room, or can’t host another dinner party until something is done about all that stuff on the dining room table. Areas that guests see are often a lot easier, emotionally, to go through and sort out. Bonus: Cleaning them up will allow you to quickly benefit socially.
Week 5: Kitchen
This is one of the trickiest spots because it tends to be packed full of items that you could use, like that bagel cutter or extra plastic containers. Leo Babauta, the author of The Power of Less, suggests putting all items that you haven’t used in the last few months (your blender, fancy cookware) in boxes. Store them in the garage. If you really need something, it’s right there. Donate everything you haven’t used in six months.
Week 6: Clothing— yours and everyone else’s
Plan 90 minutes for typical closets, and start in the deep corners, moving toward the middle. The part most likely to slow you down? Items that fit but for some inexplicable reason are never worn—which make up more than half of most people’s closets, according to Urbanska. The Not Sure bag will come in handy here.
Week 7 & 8: Bedrooms
Bedrooms are often home to mementos, photos and family items that may be irreplaceable, so schedule a friend to sit with you to help you make quick decisions. “Remember, your bedroom is primarily for relaxing and sleeping, and all items that won’t help you do that don’t really need to be there,” says Wanda Urbanska, author of The Heart of Simple Living.
Week 9, 10 & 11: Attic, basement, garage and home office
Never do these rooms solo—furniture and big boxes will slow you down, so schedule a helper. As with closets, work back-to-front, beginning in the back corners and moving toward the middle of the room. Back corners tend to fill with junk you don’t need, and make for quick tossing that opens up a lot of space.
Week 12: Throw yourself a party!
A giveaway party, that is. Invite over friends who might be happy to take that necklace or the jeans you never wear off your hands. You might just inspire a spree of decluttering.
Want more tips on preparing your home for sale? Contact Patrick Parker Realty and we can get you going!
Colby Sambrotto, founder and former chief operating officer of ForSalebyOwner.com, spent six months trying to sell his luxury New York City condo himself through online listings and classified ads. He then turned it over to a Real Estate Agent where the two-bedroom pad fetched $2.15 million.
The Agent, Jesse Buckler, said he told Mr. Sambrotto the apartment in the Lion’s Head building on West 19th Street near Sixth Avenue was priced too low. It just wasn’t drawing the right buyers.
After attracting multiple offers, Mr. Sambrotto’s condo went into contract in May 2011. It closed at $150,000 more than the original asking price – covering well more than Mr. Buckler’s standard commission.
“At first he wouldn’t let me increase the price,” Mr. Buckler says. “I told him I know what I am doing – the market is picking up.”
Mr. Sambrotto confirmed the details of the transaction with Mr. Buckler as the Agent to The Wall Street Journal.
The Benefit of Right Pricing
Right pricing clearly works to your benefit by resulting in a premium selling price in the shortest time. Pricing right means more qualified buyers are viewing your property, you will not lose money by chasing the market down and you will avoid the stigma of being a ‘stale’ listing. Pricing is the most important aspect of selling your home and it requires the extensive market knowledge that only a Real Estate professional can bring.
When considering selling listing your house “For Sale By Owner” (FSBO) it is important to consider, in addition to the challenges faced by FSBO’s, the expertise Real Estate Agents bring to the table.
When selling your home, a Real Estate Agent can give you up-to-date information on what is happening in the marketplace and the price, financing, terms and conditions of competing properties. These are key factors in getting your property sold at the best price attainable.
In fact, a 2011 Home Sellers study reports that the median sales price of an Agent-Assisted home was 27% higher than one for sale by owner.
A Real Estate Agent will market your property to other Agents – as well as to the public – and will know the best way to go about doing so. An Agent can also help you objectively evaluate buyer proposals, and then, finally, help you navigate and close the sale.
In 2011, the typical FSBO home in Bradley Beach and surrounding areas sold for $357,927 compared to $490,308 for Agent-Assisted home sales.
Analysts have stated that FSBO’s believe their homes should fetch more than buyers are offering. On the other hand, buyers believe that FSBO properties are overpriced. This is where a Real Estate Agent’s expertise in pricing your house to sell is invaluable.
Competitive Market Analysis
The best price can only be determined by testing the market and challenging the competition. The market dictates value based on current conditions. A Competitive Market Analysis provides the information needed to determine the value of your home.
Buyers “comparison shop” and the Competitive Market Analysis focuses on properties on the market competing for buyer attention.
The Benefit of Right Pricing
Right pricing clearly works to your benefit by resulting in a premium selling price in the shortest time. Pricing right means more qualified buyers are viewing your property, you will not lose money by chasing the market down and you will avoid the stigma of being a ‘stale’ listing. Pricing is the most important aspect of selling your home and it requires the extensive market knowledge that only a Real Estate professional can bring.
Only a Real Estate Agent has the tools and resources needed to pull, analyze and apply this data effectively.
Are you currently listing as FSBO? What challenges are you facing? How can Patrick Parker Realty help?
Real Estate Expertise By The Shore
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