How To Get Top Dollar

HOW TO GET TOP DOLLAR FOR YOUR PROPERTY

PRICED TO SELL? ATTRACTING THE RIGHT BUYERS!
DOES THE DAY OF THE WEEK MATTER?

Price your property correctly to get the best return on your investment; Here are some tips from several sources to discuss and consider when PRICING YOUR PROPERTY:

MOST SELLERS HAVE 2 OBJECTIVES:

A) GET THE MOST POSSIBLE OUT OF THE PROPERTY

B) SELL AS QUICKLY AS POSSIBLE

So, consider this; if you were to place one before the other, which is most important to you? Okay, now keep that main objective in mind as we go through these concepts and questions.

Be realistic! Although the negotiating begins with the Buyer, the Seller starts the process with the LIST PRICE; and ultimately the Buyer will establish the MARKET PRICE, not you and your agent, not even the Appraiser, (although lenders and appraiser can sometimes assume that they do).

Don’t allow your personal ego, memories of past markets, or enthusiasms warp your judgment. Overpricing could lead to under-valuing when you finally do get it sold. This is a mistake you don’t need to make.

What Affects Your Asking Price?

1) URGENCY. How quickly do you want to sell?

2) COMPETITION. Are there a few, or many properties available in your category or area?

3) AVAILABLE FINANCING. This is a huge one that seems to be overlooked in this LENDER shy marketplace.

Do you have an assumable loan? Are rates and the time frame for approval a consideration for a Buyer making an offer? Are their alternatives; Seller Financing, Conventional, etc., available in your price range?

You may also want to investigate special loan programs that may be offered by your State or Municipality that will help your property get an advantage with the competition.

4) COMPETITVE MARKET ANALYSIS. When an agent gives you a print out of what similar properties have sold for in the past season (or farther back if you need to go there) this is to help you set your price so that your home will be setting in a category to also sell.

Do not, (again) let the ego, or the overpriced-overly updated kitchen or marble floor; have you thinking that you are going to get back dollar for dollar on your cost!

Talk with your seasoned-professional REALTOR about what you could expect to get for a $40,000 kitchen makeover on a $300,000 home. They should be able to show you with pictures, what other similar properties got for theirs.

5) EXPENSES. For the most part, agent’s commissions are pretty much the same. They are able to negotiate some, but keep in mind they will have to go past their Broker to adjust this, if it is a drastic cut.

REALTORS are usually INDEPENDENT CONTRACTORS as far as IRS tax status goes, but unless they own their own BROKERAGE, they are answerable to a Broker for every contract they sign.

There are “ala carte” brokerages out there as well, where you can “purchase items of marketing or skill, resources & abilities as you go”, so to speak.

Examples include: $500 to put you home across the local MLS system, $500 to put up a sign and write ads for the local newspaper and internet marketing boards, $300 to create a professional information flyer and keep your info box filled up, $1000 to assist in all showing appts and negotiations of offers to purchase, $400 to review all closing documents and assist with closing.

Whatever you do, I strongly suggest that you add up all the possible items you will and may use, to see if this is the bargain you think it is. It has been my experience that if you end up going this route and ultimately use all the items, you end up paying more than you would with a commissioned full service brokerage charging say, 7% of Sellers Net Price.

What DOES NOT AFFECT YOUR LIST PRICE?

What you paid for your home.

Typically; Kitchens and Bathrooms bring more than a $ for $ return

The investment on your improvements

As mentioned earlier with the overpriced kitchen remodel. I had a listing that wanted the $8,000 back on the travertine stone floor in their $300,000 home with a 1980’s kitchen. NOT!

The Cost To Buy Or Build Your New Home:

Do not make the common mistake of setting your list price by what you NEED to get out of your home to MAKE your new home work financially for you.

I know it sounds silly, but too many a Seller thinks that a prospective Buyer should do this.

Personal Attachment:

This is the memory factor…The new buyer of your home does not place a value on all the great family memories you had in the pool, or the basement family rec room.

Everyone thinks their home is worth more than their neighbors because of their personal attachments. A typical buyer will make their purchase choice based on their emotions, NOT YOURS.

Neighbor’s Claims:

The neighbors will tell you what you should list your property for, because the higher you sell it at, then their value goes up, and they will have bragging rights at the next social BBQ about what the “home across the street sold for , and now their home is worth, because theirs is so much better than yours!”

Consider also, it is possible, you may have a neighbor that has a friend or family member who will be interested in buying your home, and they want them to get the BEST DEAL ever and convince you to underprice for their family or friend’s benefit. Neighbors are not a source for Fair Market Value.

Sometimes, when a family member is selling a deceased member’s home, some “know-it-all” (although they may be well intentioned relatives, this does not delete the damage they can do) out of state, will have an opinion of what Market Price should be; again, listen to what your neighborhood professional-experienced REALTOR gives you to consider.

I would no more know what the market was doing in an area 50 miles away until I spoke to an agent who works that area, and sells properties, to give me the information I would need to consider; so should you!

Ultimately, What Is The Damage Done When Someone Overprices Their Property?

Your competition will send you THANK YOU cards for helping them sell their property. Most buyers are competition shoppers and they will usually figure out which is the best value.

Have a front entry that beckon’s passerby’s to enter

80% of your potential market will see your home in the first 6 weeks of your listing. It will usually take you 3 months to get them back through if you lower your price, and they haven’t already bought and are enjoying their new place! It will take you 6 months in the cycle to create a NEW market of First Time Potential Buyers.

How long and how low will you go in that amount of time? Will REALTORS and passerby’s label it as “OVER PRICED” thereby stigmatizing future showings of your property?

Those passing by will wonder, “What is wrong with that property? Everything else seems to sell in the neighborhood?”

Serious Buyers won’t even come and look if you are not even in the market, “ballpark”. If you’re over a certain range, some buyers won’t even look at your property. They won’t want to waste time and emotion in making you a market priced offer for fear of disappointment in not being successful in getting an offer accepted.

This is very dangerous and agents will also not want to waste their time in this most damaging practice. Set your property value over too much and you will eliminate your actual market from seeing your home.

Some Seller’s will say, “Just price it where I want, and let’s see if we get any offers. If we don’t we can always come down.” Every REALTOR has heard this statement too many times.

It is the most dangerous and expensive game a seller can play!

You may ultimately sell below the actual market because of desperation, stigmatization and frustration. You will make extra interest mortgage payments, taxes, insurance and un-planned maintenance costs. Not to mention you may miss out on that dream property you have your eye on!

Properties that are priced RIGHT from the beginning will sell more quickly and for a higher price than those that are overpriced.

One last thing to consider; Properties stats need to be considered when your property is “on the border” of a pricing range. Let me explain;

Say your personal home is market priced at $437,000 and when you check the stats you find out that homes above $450,000 have 7 homes for sale and they are selling in 23 days vs. homes at $400,000 – $449,000 have 33 homes and they are selling in 49 days.

Rather than placing your home on the market in the middle of the more competition flooded category, do something extra to your home that will help you increase your value and place it in the $450,000 category.

Again, your seasoned-experienced REALTOR could have suggestions specific to your property and your market, which you could do to raise your price $13,000 and get it sold for more and faster.

Do not make the mistake of thinking you can just put your $437,000 property in the competition mix of $450,000, unless you add something to it to get that additional price.

It could be an upgrade on countertops and flooring. It could be new Master Bathroom or extension of a patio and awning area. Extending decking done in Hardiplank or similar grade finishes. A new driveway and entry lighting…ask your REALTOR for suggestions specific to your property and market.

According to the 2013 Cost vs. Value Report (www.costvsvalue.com) Property Owners looking to get the most out of a remodeling project should look to the home’s attic, kitchen and exterior. These reports are published each year in remodeling and REALTOR magazines.

The reports are conducted by studying current or popular home improvement projects using REALTOR information that adds the most VALUE (best return on investment).

Of the 35 projects studied for this year’s report, Salt Lake REALTORS reported that an upscale fiber-cement siding replacement tended to have the most of its cost recouped. A typical project cost was $11,971, with a 70.6% being added to the home’s sales price.

Exterior redo nationally remodeling projects added more to a home’s value than in the Salt Lake region projects; they were also more expensive, as in the case above being nearly $4,000 less.

The report also notes that the 2013 average cost to value ratio rose to 60.6% nationally marking an end to the 6 year decline. Lower construction costs and stabilizing home values as a reason for the higher ratio.

Consistently kitchen remodels ranked in the top 3 with a 62.3% return on investment and a new one rounding out the list was an attic bedroom with a 62% ROI. Another surprise in this year’s list kitchen storage cabinets was adding a back-up generator coming in at 35.1%.

Check out the website (www.costvsvalue.com) for the full report. Consult your local neighborhood REALTOR professional and make a list and budget for your remodeling projects this year and get the most out of your Investment.

When Is The Best Day Of The Week To List Your Property For Sale?

Not only is the day of the week important, but month of the year also plays a role in getting the higher sales price.

According to www.UtahRealtor.com/mag, homes listed on Friday take an average of 81 days to sell compared to the average 85 for other days of the week.

In addition they receive 99.1% of the List Price. (results were using comparable from 2012 Sales on WFRMLS).

Sunday was the worst day to list a home. With April being the best month of the year to list, through June, homes listed in April received an average 99.2% of List Price compared to 97.3% for homes listed in December. Thursday was the next best day to list.

For a downloadable PDF of “How To Get Top Dollar”, click here.

For Further Information you can contact your friendly & experienced Century 21 All Islands Agent at:

(801) 580-4317
annettepjudd @ gmail.com

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