We're often asked by our clients, "How much under the listing price should we offer?"
This is an excellent question. The answer is difficult.
The main reason
we emphasize the education phase of looking at homes is because that is
the best way for you to know value. When you review and study 40-60 (or
more!) listings, then drive by 10-20 and look at 5-10, you will
recognize the "Hot Listings." You'll also recognize the "dogs."
Sellers price their homes differently for 4 basic reasons:
1. Ridiculously Overpriced!
have listened to a real estate agent over-inflate the value of their
home in an effort to obtain a listing. There is a natural tendency on
the part of sellers to list with the real estate agent who gives them
the highest promise. There is a tendency by some real estate agents to
give the seller a high "value" in an effort to obtain the listing.
These homes can
be 10-20% overpriced. These sellers may need a "dose of reality" for a
few months before they begin to realize that their home is way
overpriced as compared to others in the area.
The longer an overpriced home is for sale, the more likely we can get the seller to face reality and sell at a fair price.
2. A Little Overpriced!
These sellers fall into 2 categories:
• Those that feel their home is worth every penny of their asking price.
• Those that want to leave a little "negotiating" room.
These homes can be 4-10% overpriced. Perhaps 75% of all homes for sale are priced in this range.
3. Priced At Fair Market Value
have carefully and realistically studied other homes for sale. They have
priced their homes very competitively. These homes usually sell within 4
weeks at or very near the listed price.
4. Priced Below Fair Market Value
These homes are
priced below value. Perhaps the seller wants a fast sale. Perhaps the
real estate agent recommended too low of a price. These homes usually
sell within 7-10 days, at or above the listed price. There are usually
carefully studying homes for sale, it's difficult to establish Fair
Market Value. If you're obtaining a new home loan, you'll be protected
by the Professional Bank Appraisal. Home lenders want to make sure that
you don't over-pay for a home. If the home does not meet value in the
eyes of the bank appraiser, you'll be informed. At that time, we can
re-negotiate the sale price or void the agreement and refund your
earnest money deposit.
Our job is to
ensure that you have the tools and information you need to make an
informed decision. We'll help you prepare the offer. Then we'll present
it to the seller on your behalf and try our best to get it accepted at
your price and terms! Call us anytime at Century 21 Max-Immo Gabriela Jonas – 514-266-0419
By Gabriela Jonas
Century 21 Max-Immo
Dear Prospective Home Seller,
This report has been prepared to help you avoid common mistakes made every day by well-meaning home sellers. During my 8 years as a Realtor,
the mistakes I see made most often are those where sellers fail to do
simple things that cost almost no money, yet always make homes sell for
thousands of dollars more.
Buyers Buy on Emotion, Not Logic
Buying a home is an emotional decision on the part of the buyer. Often the buyer doesn’t even consciously know why they like one home more than another... they just do!
Decisions are made on a deep subconscious level tied into what makes
them feel comfortable, safe and secure. That’s why it’s so important to
make sure your home looks, feels and smells its best. Remember that
you’re competing with 1000 to 3000 other homes for sale. Since buyers buy on emotion, let your home be
the cleanest, freshest and cheeriest, and you’ll have a much faster sale
at a higher price.
If your home is logically a good value, but buyers don’t
feel warm and emotionally attracted to the home, you will receive lower
offers. You want lots of people to say or think, “Wow! This is nice!
I’d like to live here!”
Let’s Take a Look at Five Factors
That Assure Buyers Experience a Good Feeling
When They See Your Home
First, The Cheer Factor: For maximum visual effect, turn
every light on, even on a sunny day. Light creates a warm, safe
feeling... See More by registering HERE
Second, The Access Factor: Buyers and real estate agents are
busy. They’re not looking only at your home, but fitting your home into... See More by registering HERE Third, The Distraction Factor: Do everything you can to minimize
distractions for the buyer. Turn the TV and the loud music off. Leave... See More by registering HERE Fourth, The Décor Factor: Tasteful and up-to-date décor is your
best investment for getting a greater return on your money. Paint and
new wall coverings make the whole house smell clean and neat. Faded
walls and worn woodwork reduce desire... See More by registering HERE Fifth, The Front Yard Factor: A pleasing exterior invites
inspection of the interior, since your front yard reflects the inside
condition of your house. Make certain that trees are trimmed so the
house can be seen from the street. Have the grass... See More by registering HERE
Here are additional tips:
Storage: All clothing, shoes, hats, accessories, tools,
papers, magazines, books and personal items not contributing to the
décor of the room should be stored in closets or dressers. All closets
should be tidy, neat and clean... See More by registering HERE Closets: The interiors of all closets should present an
organized, tidy and uncluttered appearance. All unneeded or unused
items should be... See More by registering HERE
Before you set a first appointment for showing your home, ask your
Realtor to make a quick visit to spot anything you may have overlooked.
Consider writing out a checklist you can quickly refer to when
prospective buyers are en route.
Here’s a quick note to let you know how I can help you—or anyone you feel comfortable introducing me to.
Believe it or not, there are many homeowners who desperately want to
move (for more space, to be closer to work, etc.), but they stay in
their homes year after year for one surprising reason—they can’t see a
way around the “sell, then buy” or “buy, then sell” dilemma.
There are three solutions to this conundrum. First, ask for a 60 to
90-day “rent-back” from the new buyer of your home, giving time to buy
your next home. Second, time the sale and purchase to happen
simultaneously. And third, sell and move into temporary housing, and
then buy at your leisure. All of these approaches have pros and cons
that should be discussed with a qualified real estate consultant.
If you, or someone you know, would like to discuss selling and buying
simultaneously, call me at 514-266-0419 or email me at
firstname.lastname@example.org. I’ll send you a copy of my free report,Making the Move Easy On the Kids.
Gabriela Jonas, Your Real Estate Consultant For Life
Century 21 Max-Immo, 514-266-0419
P.S. Who do you know wants to move, but has to sell first? Please let them know I’m available for a free consultation.