When it’s time to sell your house, one of the most important decisions we can make together is to determine what kind of sale and purchase price you desire. Do you want to improve the property to compete for the buyer who has been trained by HGTV with grey and white as the predominant colors? Do you prefer a quick sale at a lower price without the work? Do you want a sale that is quiet and not on the MLS?
The reality of each sale is that the owner controls the condition of the house, and the asking price. However, the buyers control how much they are willing to pay. With that in mind, what kind of condition is your house in? Is it a Frank Lloyd Right architectural masterpiece? Is it tract housing from 1978 with original fixtures, dark woodwork, and original tile? What impact do these things have on price?
BUYER DETERMINES SELLING PRICE
As a seller, you need to keep this in mind because as we get ready to bring your home to market it’s important to list the property at or below what the market appears ready to bear. Listing it for another 5-10% higher than what the market indicates has the tendency to keep buyers from making offers, even if they do schedule showings.
The problem with this is that by the time a seller comes to realize the home isn’t going to transact at the higher price point–and responds to a price reduction suggestion from your trusty Realtor the buyers who were looking at the houses in the area and price point have seen it and moved on.
Of course it get even tougher when faced with the decision of trying to do some improvements to meet market expectations–think HGTV again. The tendancy of sellers having done some improvements is that the market owes me even more for my house–but buyers don’t see it that way. It rarely works to tack that extra money on top, rather you should view the investment in prep as ensuring your receive the pinnacle price you can for the home, not the pinnacle price + 10%.
TINDER FOR REAL ESTATE – SWIPE RIGHT
The price range of the house also plays a super large factor in this decision making process of where to list your property–if it’s a starter home in Crystal under $200k, you might get away with being high on price when there is a shortage of homes. If it’s a 25 year old house in the $600’s in Plymouth competing against other homes for sale in the Wayzata School District including new construction at the same price point it can be really tough. It’s also different when the lot outweighs the value of the structure as is often the case in Wayzata Real Estate.
The market has the tendency to swipe left or swipe right on your house instantly–your listing gets consideration for a moment and is deemed worthy of more consideration, or not. Closed Circuit to my wife Elisha — I haven’t ever been to Tinder’s website nor used the service! Of course this is being done with other competing homes lurking in the background for the buyer’s consideration as well. It’s one of the reasons photos and presentation on line are so important today! By the way most house hunting is being done via mobile device on the couch at home!
I have included some bullet points from my listing presentation for your review:
What affects the market value of your property?
- Physical Qualities of Your Property
- Location, age, size of house and lot
- Floor plan and architectural style
- Market Conditions
- Interest rates and availability of financing
- Buyer demand
- Prices of recently sold properties
- State of the economy
- Seasonal demand
- The Competition
- The number of similar properties for sale
- Their prices, financing terms, location and physical condition
Some factors have no effect on the current value of your property:
- Original Price
- What you originally paid for your house.
- Needed Proceeds
- The cash proceeds you want or need from the sale
- What people say your property is worth
When it comes time to price your property, it’s more important than ever to create that fear of loss by pricing right it out of the gate because the longer it’s on the market the more likely there is going to be less interest and an even lower price. If you have questions about this process, don’t hesitate to contact myself and Elisha for a no obligation consultation. Dan Gustafson is the best listing agent in Wayzata, MN.