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Helping Sellers Determine a Fair Market Value

Excellent post about helping sellers determine a fair market value. Something is only worth what you can actually get for it.  Thank you for taking the time to write this and share with us all.

Rain

 

Via Paul Walker – Metro East IL Realtor (Realty Executives of Metro East):

Here is good information for home sellers and listing agents to consider when determining a fair listing price. The listing price is not determined by how much your seller owes, (but you do need to know this information to determine if they are upside down, and may need to consider a short-sale, also be sure you ask if they are current or behind on their mortgage payments) what your sellers thinks they need out of the property or from a recent appraisal even if it was done just a few months back.

Home Pricing using a crystal ball

So How Much Is My Home Worth?


Well, if someone can tell you what is it worth to the exact penny, they must have a crystal ball!
My answer is…whatever the average home buyer today is willing to pay!

Yes, we can look at recent sales of “comparable homes” and study or view the active listings that appear to be of like style, quality, and features. And in the end the best we can do is give a close price range of low and high prices. That’s because every house is different and unique and the real estate market is in a state of flux, with the good news and the bad news, with the higher gasoline prices and the lower prices.

Home buyers are only willing to pay what other similar homes have sold for recently. They will not overpay for a home, especially in this market. If you price your home at the top of the market, you are only helping your competition to sell.

 Recent home improvements while they may add value –  the home seller cannot expect a dollar for dollar return. Kitchens and baths will add the best return on investment amount, but finished basements, and add on rooms will not return a seller the amount they spent for the upgrade.

Be sure that your sellers have the home market ready and have a “wow factor” when determining the sales price! You have to be priced better than your competition or at least a good as the other “best” homes on the market, and certainly much better than the ones that are overpriced and not selling.

If a seller has to be somewhere else in 3 months or so because of a job move, by all means, do not let that home sit vacant on the market. Price it to sell.

Actually, every seller should consider this…..What will it take to get an offer on my home within the next 30 days? Any home price that does not accomplish this goal, will lead to a lower net sales price when it comes to the closing. Why? Because days on the market will lead to a lower sales price in a declining real estate market, among other factors! No one wants to buy yesterday’s donut and pay full price. They want the new fresh donut on the market.

It is time for all agents to know their market numbers! How many homes are on the market? What price ranges are selling the best? How many homes in different prices ranges are selling each month? What is the average day’s on the market in your area? Where is the new construction being built in your area? What price range of new homes are selling the best? How many inventory homes are the builders keeping on hand? How many new homes are they selling each month?

Anyway, it is a great day to be in real estate and it is full of opportunities.

Go and be a blessing to someone in need today!

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