On the Market VS In the Market: Selling Your Home in Today’s Market
By Pete Chaison
We all have heard and read the encouraging headlines in the local and national papers regarding the housing market. Overall nationally it is very encouraging and there is reason for optimism. Real estate values and prices always vary from region to region and more finite in a local environment.
The Savannah area is no different. Recently in 2012 we have sold the exact home built by the same builder in three different Savannah areas. The price difference from low to high was forty thousand dollars, primarily based on location, as the three homes were all built within a 2-year time frame and were in comparable condition.
One of the biggest mistakes a seller can make is interviewing a local REALTOR and choosing the agent solely on who suggests the highest listing price. It is easy to get caught up in the excitement of making and banking more money than you anticipated. The seller often thinks of more financial opportunities: perhaps purchasing a more expensive home, paying for a child’s education or that long overdue vacation. It is extremely important for the seller to be informed, realistic and not make the mistake of picking an agent based on the suggested listing price alone.
The reality and truth is that it unfortunately does not matter how much you THINK your home is worth. The most important opinion is the buyer who makes an offer and ultimately attends a successful closing with you. The pricing of any home is part science and art. It involves comparing similar properties within geographic radius of the home for sale. Your REALTOR will make adjustments, some of which are the age of the home and it’s mechanicals. Also any options, upgrades and the overall condition of the home are important. Square footage is always a consideration and a very relevant variable and factor.
The closer the comparables are to one another the better. Comparing homes in a subdivision is typically easier and more accurate than homes in a rural area. All of these factors and variables are extremely important when determining the price to list your home in today’s market, not the market of a year to two ago or what you perceive it to be in the future. This is similar to the way an appraiser will determine the value of your home in today’s market and it’s current condition. It is both an educated and informed conclusion but ultimately the market will dictate the value of your home.
Homes will always sell at a value or price, which a buyer is willing to pay and the seller is willing to accept. As your REALTOR, I always want your home to sell for the highest value possible. One of the biggest mistakes is listing and pricing your home too high. I always tell clients we are in the business of selling homes and we want to sell your home. The reality of it is, and the sole reason you are listing your home for sale, is to sell it.
This article is such an extremely and important topic for any seller. Based on that fact, next week I will continue this article, as pricing your home competitively in today’s market is one of the most important decisions you will make when listing your home.