When it comes to pricing your home to sell in Greater Oakland County, you’ll find lots of “experts.” The neighbors may want you to set a high price, thinking it will make their homes more valuable. Your company may encourage you to set a lower price so the home will sell quickly and you can move to your new assignment. You might be thinking in terms of what you paid for your home, how much you’ve spent on it, or how much profit you want from it.
But who sets the price? When you put your house on the market in Greater Oakland County, you set the asking price. But it is the market that determines the selling price. If the asking price is set correctly, the house is likely to sell fairly quickly. If set too high, the house may languish on the market, unseen by the right buyers.
Pricing It Right
A correct asking price is crucial to a timely sale. That’s where we come in. But how do we know how to advise you on price?
- First, we look at the prices brought by similar homes recently sold in the area, and compare their features to those in your home.
- Then we survey the competition, seeing what homes are currently on the market, how they compare to yours and how long they have been up for sale.
- Next we look at how the number of buyers compares to the supply of homes for sale.
- We take stock of the direction of the market. Are prices rising or falling? Are homes selling quickly for the asking price?
- Finally, we look at the incentives other sellers are offering, such as paying some closing costs, and what conveys with the property, like draperies or washer and dryer.
As you noticed, neither how much you paid for your home nor how much money you wish to profit from the sale affect the market value of your home.
Avoid “Testing The Market”
Many times, sellers are tempted to price their homes a little high in hopes of getting more money from the sale. But often the opposite happens, and they sell – after a long time on the market – at a price below what the home would have sold for if it had been priced correctly at first. This is because most buyers look only at homes they can afford.
- If a home is overpriced, many potential buyers don’t bother to consider it because the asking price is above what they can afford to pay.
- Buyers who do tour the overpriced home see that it doesn’t measure up to others in the same price range.
- By pricing the home close to market value, on the other hand, the sellers make the most of their best opportunity to sell to the home’s true market during the highest traffic period – the first weeks after the new listing comes out. That’s when real estate agents call in the buyers they have been working with to see what’s new on the market.
“The best game plan is to price your home over market to give yourself room for negotiation if offers come in low.”
REALITY: Most homes sell within 5% of what similar neighborhood homes have recently brought. Pricing your home too high will actually scare buyers away. They’ll assume you are unrealistic and likely to be difficult to deal with. In addition, buyers who believe your home is out of their price range won’t even look at it.
The best way to deal with a low offer is by making a counteroffer or rejecting the contract outright. Having an experienced real estate agent in your corner will help you price your home to sell quickly, while netting you the best possible return.
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Fast Track Selling
Times running out for Home Seller so everyone says, even those who are not professional Realtor’s seem to think. With school starting back and fall fast approaching Home Sellers seem to be in a panic mode this time of year and agents seem to be fighting off this assumption that these Home Sellers really have concerns about and don’t want to be “Left in the cold” sorta speak. Although it is true that the housing market seems to slow a bit this time of year due to many factors and Home Sellers with children seem to put looking for a home on the back burner or at least slow down a bit in their search as they are focusing on getting their children’s school shopping done and preparing for the fall season, but Home Sellers don’t let this fact slow you down as those families that are looking for the perfect home will still be out there looking as they multitask their daily routines. Remember if you home is not selling or getting showings there are many factors that can be attributed to this such as price, curb appeal, access to show and much more. I wanted to share some tips on getting your home back in the fast track and help you see results in getting your home sold quickly. I hope this will help all of the Home Sellers in the Greater Oakland County area and beyond.
1. Price To Sell
A nationwide survey of the National Association of Realtors found homes that sell within four weeks of the initial listing sold for close to the original asking price. Homes on the market for up to six months sold for about 7% less than the asking price. Listings that languished for more than six months sold for 15% less than the asking price. Experience shows: a too-high price results in a slow-to-sell home.
Expertise pays off.
This is an area where our neighborhood expertise pays off. By performing a competitive market analysis, we can help you determine the best possible price–one that puts the most money in your pocket and gets it sold fast. We’ll study listing and selling prices for similar homes in your neighborhood and compare your home’s special features, improvements and condition. Interest rates, local economic trends and the availability of homes for sale in your area will also affect your home’s value. The feedback we glean regularly from home seekers helps us keep our sellers informed of what today’s buyers want and are willing to pay.
The more realistic the asking price, the sooner your home will sell. Unrealistic prices, on the other hand, are the major cause of “shopworn” listings, causing potential buyers to wonder if something is wrong with the home beyond price.
2. Results Marketing
Create a marketing plan.
Once you’ve established a selling price, the next step in your fast-track strategy is a maximum-exposure marketing plan. An effective marketing plan can include:
- Tours to familiarize other agents with your home.
- Showing your home to qualified buyers.
- Advertising your home where it counts.
Offer buyer incentives.
For example, sellers can help with closing costs, provide a home warranty, give allowances for carpet or draperies, or pay utilities or lawn service for a limited time. Lowering cash barriers to the purchase will significantly enlarge the circle of potential buyers. We can discuss many other ways to market your home so it stands out from the competition.
3. Showplace Condition
To tempt a buyer, your home has to be inviting. Today’s buyers generally don’t have the time to do their own fixing up, so for maximum appeal your home must be in move-in condition.
Focus on curb appeal.
First impressions really do count. Inside your home, recognize that living condition is different from showing condition. Prospective buyers want to see your home in near-perfect condition, even if that’s not the way they’ll keep it once they move in. Make your home a “showplace” and you’ll soon be taking a victory lap after a fast sale.
Give me a call for more tips on getting your home ready to sell, developing an effective marketing plan, or setting the right price for your home. With our experience and track record, together we can make sure you finish a winner.
Pay Cash Verses Mortgage is a hard decision and could use some good thought and understanding These are questions as a Professional Realtor I face everyday in the Greater Oakland County Mi from some Home Buyers. Pay Cash verses Mortgage can be a tough decision for Home Buyers, and I’m not a financial adviser by far and cannot give that sort of advice to my Home Buyers, it is a question many have. Pay Cash verses Mortgage needs some food for thought and much consideration when deciding either way,
There are ups and downs in deciding to Pay Cash verses Mortgage and wanted to share them to help educate Home Buyers to the differences of both options. I do hope this information is helpful and helps to guide and educated Home Buyers into making the right decision that is best for them. Are you considering paying cash vs a Mortgage for a home? Perhaps you sold a more-expensive home or you’ve received a substantial inheritance. Maybe you have a lifetime of savings stockpiled—or you won the lottery! Being freed-up from a mortgage payment seems like a great idea at first glance. You would have no more worries about missing payments—or having your home foreclosed on. Not having a monthly mortgage payment—usually the largest payment a homeowner makes—could free up monthly income for other purposes.
- The flip side deciding to Pay Cash verses Mortgage that tying up most or all of your cash in your home may not leave you with the flexibility to pay for other things (e.g., college fees, living expenses, healthcare costs) or to respond to emergencies. Although you might later be able to tap your home’s equity with an equity loan or line of credit, doing so takes some time, and you would likely end up paying a higher interest rate than if you had taken out a mortgage to begin with.
- Pay Cash verses Mortgage means you will be lacking a mortgage meaning you would forego the opportunity to shelter some of your income by deducting mortgage interest expenses from taxes.Rather than putting all your cash toward a home purchase, consider a large down payment and an accelerated pay-off plan, such as a shorter-term 10-, 15- or 20-year mortgage. This way, you can use your income to pay off the mortgage sooner, and you still have “liquidity” for other investments and rainy days.
- Big red tax-break flag: If you should decide to take a mortgage out on your home more than 90 days after you purchase it, and you don’t use the money to improve your home, the mortgage would be considered “home equity debt.” In this case, you would only be able to deduct mortgage interest payments on up to $100,000 of your debt ($50,000 if married filing separately).
- When you take a mortgage to purchase a home within 90 days before or after the purchase, it is considered “home acquisition debt”—allowing you to itemize interest-payment deductions on mortgage debt up to $1 million ($500,000 if married filing separately).
- Today’s still-low mortgage interest rates make borrowing inexpensive and paying cash verses mortgage that much more of a challenge. With a mortgage and more freed-up cash, you could put your money into stocks, bonds and other investments that can yield significantly higher returns than what you would save by not paying mortgage interest
- Be sure to consult a financial professional to find out how paying cash or taking a mortgage would impact your unique situation and future plans. You can also get more information at www.IRS.gov; search for Publication 936, Home Mortgage Interest Deduction.
Paying Cash verses Mortgage is a challenging question and it of course is based on every Home Buyers particulate situation. I hope this helps..and remember to seek out a professional Financial Advisory to discuss what is best for you. Happy Home Hunting!