No More Games: the PRICE needs to be RIGHT or I may not want to list your house!
A previous article on our blog, “Why I may not want to list your home for sale,” we talk about the partnership that is necessary to list and sell your home in a reasonable period of time for a good price.“Sellers in the real estate game the PRICE has to be right and coming up with the right one may be the most important decision we have to make, or I may not want to list your home.”
The housing market in Delaware is in full recovery mode but a successful sale also depends on the location and the neighborhood. We have a limited inventory of the kind of homes Boomers want to buy and that is the challenge if you have a home to sell.
Do you have what it takes?
First, we need to research comparable homes that have sold within the past 6 months. If there have been sales in the same neighborhood in that time period, those are the best comps to evaluate. Similar neighborhoods in the same general location may also be considered.“But homes that sold 10 years ago in an overinflated market are not relevant to today’s market. If you think differently, I may not want to list your home.”
So how do you price your home today, if homes in your neighborhood have sold between $250,000 and $300,000 in the last 6 months but one sold for $325,000? If your home is a true comparison to the one that sold for $325,000 in excellent condition, we may be able to price your home slightly above that number.
How so? When an appraiser evaluates comparable homes, the specifics count far more than the aesthetics. An appraiser looks at age, size, number of rooms, measurable quality as well as the current market. Is it a declining market, a stable market, or an improving market? In an improving market, an appraiser may see the increase in recent sales as totally dependent on the pace of sales and the current market trends.
Compare apples to apples
How does your home compare to the new ones being built today by Schell Brothers, NV Homes, Ryan Homes, K Hovnanian Homes and the many other builders in new home communities all over Coastal Delaware? What do they offer and how does the final sales price compare to the number at which you want to list your home for sale?
In a new home today, the buyer can select hardwood flooring, a gourmet kitchen with Stainless-steel appliances, an Owners’ Suite with an elegant luxury bath and more. Energy efficiency has become important to buyers today and many builders offer upgrades including Geothermal HVAC equipment, Solar and state-of-the-art construction materials and methods. We know our market and today’s buyer wants an energy efficient home with all the upgrades and options.
Does your house stack up?
Your competition is new construction because today’s buyer is a Baby Boomer looking for their dream home. While an appraiser is looking at recent sales, buyers are comparing your home to whatever else is available for sale. If they can buy a new home, personalized to their exact tastes for $300,000, what will they pay for your resale?
It all depends on how you have maintained your home and whether or not it has the features and upgrades they want. Did you upgrade your kitchen and baths in the past few years? Do you have hardwood flooring throughout the main living areas? Is it “move in ready” or will a buyer view your home as needing work?
Today’s buyer wants to do nothing but move in. What are the chances that they will walk into your home and think “This is it! This is my next home. I love it and I don’t have to do a thing to make it mine.” To sell your home today for top dollar requires work on your part. Do you really have what it takes? If not, I may not want to list your home for sale.