Please fill out as much information about your home so I can make a proper assessment of your home’s value. Share the size, location, which level, your kitchen, bathroom and flooring materials, etc. There is no way I can give you an exact valuation without seeing the home in person, but with more information, I can give you a very close approximation.
How to Price your Home
If you would sell your home, what do you want for it? “The most I can, of course.” Do you know how many times I heard that one?
…..I mean, I get it. We all want to make money but let’s be realistic.
Now you want to know what you can get for your home? One, do your own research. With multiple website showing you recent sales, put yourself in potential buyer’s shoe Two, talk to real estate agents. We have first hand information on what we think your property is worth. We use past history and our client’s demand to determine what would be a good/fair selling price. Interview multiple agents! You are in the driver’s seat. Don’t be afraid to call the agents bluff while doing so. Because you did your research beforehand, you have a good idea was other sold for in the area. If they tell you it worth $100,000 more than your neighbor’s house that is fully updated, run. They are telling you an inflated price just to get you to sign them. Then when it doesn’t sell within 30 days, they are beating you up for price reduction because you are roped into a six month agreement. Trust your gut and don’t always sign the agent who gives you the highest valuation. Choose the one you can trust.
Pricing Strategy
Every time I go on a listing appointment, I always have a few different strategies when it comes to pricing a home. The primary factor depends on the type of market we are in. In a seller’s market like this past year, shoot for the stars, within reason. If you are in a buyer’s market, make the listing attractive to as many buyers at once by setting the price close to similar properties.
For example, let’s say it’s a healthy fair market for both buyers and sellers. Look at the past sale history in the last 3 months(must be same street)
1. Sold for $945,000 two blocks away, vinyl flooring, updated modern bathrooms, with white shaker cabinets, granite counter tops.
2. Sold for $865,000 one block south, carpet except kitchen, 90’s bathrooms, wood cabinets, formica
3. Sold for $905,000 vinyl flooring in living room, original kitchen, one updated bathroom.
Property in question: carpet flooring throughout, original kitchen, one updated bathroom, carport.
If all else is the same of close to, this is all we need to determine a solid sales price for you. Based on this information what would it sell for? Probably between $880,000-$900,000. The data is right there! But this is where knowing the market comes into play. If you know this is a competitive price point and inventory is a little low, you have the ability to stretch a little. You know there is no vinyl flooring, but the rest is very similar to #3. But with a low inventory, I am going to tell you to list for $909,900-914,900. This is just the right amount of “stretch” worth pushing for. It is valued more than the #3 but it doesn’t have everything it has. This is how I would recommend getting the most for your home. By pricing slightly above it’s actual value with a few percentage. Because buyers want to feel like they got a deal. Everyone does! So price it a little higher than it’s worth, expecting to get negotiated down a little, but enough room to sell for more than other comps in the area. I would guarantee you sell for between $900,000-$910,000.
$950,000 listing price would be silly because the home is nothing like #1. You would need at least $65k in improvements to complete a kitchen, flooring, and maybe a partial bathroom reno! Set your sights realistic.
Do not get emotional. Look at your home from an outsiders perspective. Do you know how many times I speak to homeowners and give them a comp that is newly updated and modern, then they go ahead and tell me their 90s original home is nicer…. My eyes almost get stuck behind my head, every time. But I do understand! I really do. You put a lot of heart, sweat and tears into your home! Even if you upgraded to put top of the line carpet in your home that everyone is sure to love. It’s still carpet! Many buyers will remove it and upgrade to something else anyway. Therefore it doesn’t carry value.
So take a step back and try to be open hearted to what your agent is telling you. I guarantee they aren’t telling you your home is worth less than you hoped to make you upset. They are telling you as their true professional opinion. Wouldn’t you want your agent to be honest then just sit back and blow smoke up your you know what? I tell my clients all the time, I guarantee to tell you the truth even when you won’t like it. That’s what you hire me for, the brutal honest truth and guidance to get you to the next step in your life.