| If you own a house or a piece of property, you will obviously want to sell it for the most money that it will bring. That’s just smart business! If you ask 10 people what it is worth, you will get 10 different answers! All of which will be different than what you think that its value is. So how do you really know what your real estate is worth? Who do you believe? |
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| If you are willing to put out the money for an honest appraisal from a licensed appraiser, then your appraisal will tell you the top dollar possible that your home might bring. An appraiser will find at least 3 properties that are with in a close radius of your property's location. He/she will then add and or subtract a dollar amount for the differences between the comparison properties and your property. For instance, add $5,000 dollars for an extra bathroom that your home has and the comparison properties do not. Add $10,000 for an oversized lot when the other comparison properties have smaller lots. Subtract $7,000 for a 25 year old shingle roof in need of replacement. Depending on many factors, the “value” of your real estate may or may not be what you think it should be. |
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| An appraisal from a licensed appraiser is what a bank or lending institution will use to determine the amount that they will lend a prospective home buyer. Don’t think that sweet talking the appraiser will help you get more for your home! They are held accountable and can be heavily fined up to and including loosing their license for inaccurate appraisals! They have to prove the value of your property with detailed accounts of like properties. If your appraisal looks too high to a bank, then the bank will simply order another appraisal. |
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| Always keep in mind that something is only worth what someone else will pay for it! If you have your property on the market, people have looked at it, and it has not sold, one of two scenarios is taking place. One, your property is OVERPRICED. People are finding properties in the same area that look better, are newer, have more land, or positioned more favorably than yours for equal or less money. Or two, there is something about your property that is turning people away. So many things are a “turn off” for people. It can be as simple as an unusual odor or as complex as structural cracks that scare people for fear of repairs! |
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| Realtors all tell the same stories about going out to help a home owner/property owner to sell their real estate. Usually they are met with the owners attitude that they won't sell for anything less than “whatever!” Any seasoned realtor knows that all owners want the most that they can get for their property. However, so many factors effect what a property will bring! A good realtor will have done his/her homework before coming to speak with you. Because of extensive training, they, like an appraiser can give you not an appraisal, but a “CMA” (which stands for comparative market analysis) to guide you in assessing your property’s worth. If a realtor tells you that the amount you want for your property is unrealistic, you would be wise to listen EVEN if you don’t like what they say! |
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| Remember, a realtor has access to a great deal of information that the average home owner does not have. They have been trained in putting a value on real estate. Most property owners are not! Often emotion gets in the way. Being unrealistic in the pricing of real estate just waists time, money and effort. The end result will still be the same…NO SALE, NO WAY, NO HOW! |
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| Sometimes in order to get a “listing” a realtor will agree to put an owner’s price on the property, just to satisfy the owner. This is done only to secure the listing, with the knowledge that at some point the owner will get the message that it won’t sell at the unrealistic price. The realtor will then be allowed to drop the price down to a realistic price point for sale. Unfortunately this process takes time. If the cost of homes in an area is falling, this property owner may very well pay thousands of dollars for wanting to “see” if the property will bring the desired price. By the time the owner gets confirmation that what the realtor told him/her was true, the decline in the market will be dictating a lower price than the CMA targeted previously. If you want to sell real estate, let a professional set its value and get the property sold. If you really don’t care whether or not your property sells, don’t put it on the market. |
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| When properties are listed too high everyone gets hurt. Your realtor gets a reputation for not doing his job well. He also spends his money on advertising your property with the knowledge that it’s very likely he won’t even recoup his investment! You, the owner, end up ultimately with less money. Think about the extra payments, upkeep, insurance etc. that you have to pay while it sits on the market month after month. And think about the inconvenience to you as you put your life on “hold” waiting to see how much it will bring and when you can expect the sale! Think also about the new property you desire. Will it be there when you get yours sold? |
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Here are some things to keep in mind;
- Times change. What a property was worth a year ago will not be its value today! It could be more. It could be less! Change your expectations accordingly!
- Don’t assume, Get facts! No matter what you think or what you want, a property will only bring what someone will pay for it!
- See your property as other people see it. You have emotional, financial, and investment ties to your real estate. A perspective buyer does not!
- Prospective buyers want a “good value’ that also “fits” their needs.
- Understand whether you are dealing with a buyers market or a sellers market. If there are too many homes on the market for all the prospective buyers to consume, you are in a buyers market….meaning….the buyers have the upper hand. If there are too few homes on the market to satisfy the needs of perspective buyers….you are in a sellers market. The sellers have the advantage.
- Use a realtor for optimum results. Statistics prove that people who use seasoned realtors end up with 15% more money in their pockets (even after paying the realtor fees) than a “for sale by owner” does. Realtors are trained to help people buy and sell real estate…..property owners are not.
- Don’t waste time! Price your property to sell. It has to have a competitive price in comparison with other similar properties to even have a chance of selling!
- Be Realistic! Sell it or don’t sell it, but know which you are trying to do.
Click here for tips on getting ready to sell your home for TOP value! |
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