Determining Your Home's Value
From replacing a rusted out bathroom sink to laying laminate flooring, Americans are hooked on the DIY/HGTV craze. Some things, however, are better left to professionals. Establishing your home's current market value before putting it on the selling block or pursuing a refinance is one of those things.
To determine its value, appraisers and real estate agents will compare your home (the "subject property") to those that have recently sold in the area (known as "comps"). They will adjust the comps' prices up or down, according to how similar each home is to yours.
Read on to learn how a home qualifies as a comp for yours.
The market value of a home is, simply, what a knowledgeable and willing buyer will pay it. This figure is reflected in the sales price of recently sold homes.
Appraisers and real estate agents use the local Multiple Listing Service (MLS) database in their research, to look for homes that have sold within the past six months. Only real estate licensees that pay an MLS membership fee will have access to this database, so a DIY consumer will find it challenging to locate a full and accurate list of sold properties.
Since location is one of the principal indicators of property value, appraisers and real estate agents seek sold homes that are in close proximity to the subject property. Some lenders give strict location requirements to appraisers, for example a comp in an urban or suburban area must be no more than one mile away, and rural comps no more than five miles away.
Real estate agents, on the other hand, have a little more leeway and will typically begin their research close to the subject property and then widen the area until they've found three comparable properties that have sold in the past six months.
Neighborhood characteristics that influence a home's value include:
Proximity to shopping
Traffic, airport or other noise
The quality of the school district
Number of distressed properties in the neighborhood
Declining values or oversupply of homes in the area
Price Per Square Foot
You may see sold homes or homes for sale that list the price per square foot in addition to the price of the home. This figure takes into account only the home's square footage and nothing else. Because it fails to account for the diverse aspects and special features of the house,
it isn't an accurate reflection of value.
That said, with all other aspects being equal, a larger home will most likely sell for more than a smaller home.
Deferred maintenance will drag down the value of a home. Deferred maintenance includes all of the items you have been meaning to fix, but never got around to.
Loose or missing hand rails
Dirty or damaged carpets or other flooring
Since it is unlikely that your agent or an appraiser will find a home that's identical to yours, he or she will need to make adjustments to the sold prices of the comps to account for the
If the comparable home is inferior to the subject property, value is added to bring it up to par. Conversely, if the comparable is superior to the subject, value is removed.
Here's an example of how this works:
The subject property has three bedrooms, two bathrooms and a pool. The comparable property, located three blocks from the subject, sold three weeks ago for $387,500.
The comparable property has three bedrooms and two and a half bathrooms, but it doesn't have a pool.
The appraiser or agent will deduct value from the comparable for the lack of a pool and add value for the extra half bathroom. The amount to deduct or add depends on the value the local market places on items such as a pool or a half bathroom.
The adjusted price range of the comp will reflect the current market value of the subject property.
Determining a home's market value isn't rocket science, but it does require current, accurate information and some experience with the process. The Swain Team will not only determine the current market value, but will also give you tips on how to get top dollar for the home.
Contact us at (215) 757-7257 or TheSwainTeam@gmail.com and we will setup an appointment to sit down and go over your home's value in today's market.
Remember, we are always here to help!
Determining Your Home's Value
Another Coming Soon Success Story
Another Coming Soon Success Story
Another great example of how we are able to net our sellers the most money with our unique and innovative marketing techniques. We are marketing experts who utilize exclusive marketing campaigns that no other realtor does in the area. In this case, we wanted to test price. So we listed at $285,000. For three weeks we analyzed the statistics and numbers of inquiries on the home. We had no inquires and the stats were not impressive. So I consulted the sellers and we reviewed the data and decided to try a price of $275,000. $275,000 was our number! I had a number of agents calling me about the home, and stats shot through the roof! This is a great illustration that when you overprice by $10,000 you could really be hurting yourself in the long run. The coming soon campaign allows us to play with price to find the right price, so a seller does not waste precious "day on market." As a side note once a home sits in the market for 30 days it becomes old in buyer's eyes. That is why pricing from the start is critical.
Remember, the goal of the coming soon is to create demand. More Inquiries = Higher Demand. And Higher Demand = Highest Selling Price. So at $275,000, I had realtors with buyers lined up to see the home. I put the home into our multiple list service and started showings 2 weeks after being listed at $275,000 on the coming soon.
It went on the market on a sunday with showings to begin monday. In the MLS we advised all realtors that offers where to be presented on friday at 1PM. That really generated Demand! By friday, we had 6 offers, then played them against each other. In this case, instead of going for more money, the seller went for the offer that asked for the least repairs done to the home. So the coming soon created the demand which put the seller's in driver's seat.
The bottom line, is that each coming soon we market creates unique opportunities that no one is able to foresee. Even sellers needs and wants maybe different but there is no denying that the coming soon opens many doors.
More Inquiries = Higher Demand
High Demand = Highest Selling Price
High Demand = Seller's in control of Negotiations.
Contact us at (215) 757-7257 or TheSwainTeam@gmail.com to learn more about our Exclusive Coming Soon Campaign. Request a Room by Room to prepare your home in advance and help create that demand. Or Attend our next Home Selling seminar in september. Look for details coming out soon. We speak in depth about the Coming Soon Campaign at the Home Selling Seminars.
Another Coming Soon Success Story!
This story really excites me! It is a great example of we can help our clients make top dollar for their home when we use our exclusive out of the box marketing plan, work together and price the home within 3% of the market. We have a client who wanted to put their home on the market in a month. Of course, we suggested trying our Exclusive Coming Soon Campaign for a few weeks. While on the Coming Soon Campaign we were able to analyze her various website stats to see if we were capturing the buyers and sure enough we were! Not only did we get multiple inquires on the home but the number of page views was through the roof! I spoke with the seller a few days before going on the market and I said to her, “We are getting such a positive response on your home that I think we should raise our asking price $10,000.” And that is what we did. We got two buyers in the home before it went on the market, and got an above asking price offer the first day on the market! Our exclusive Coming Soon Campaign essentially created demand for her home before it went on the market, driving her price up.
We want our marketing to be outside of the box. Innovative techniques help our clients net the most for their home. Consumers who want to net the most for their home are preparing their home for the market in advance.
And if you are preparing in advance why not start to market the home in advance? Why not create demand for your home in advance? There are all kinds of benefits to Creating Demand in Advance!
Large corporations test market their products. Why shouldn’t you test market your home?
Contact us at (215) 757-7257 or TheSwainTeam@gmail.com and to learn more about the Coming Soon Campaign. Or attend our next upcoming Home Selling Seminar on April 2 at 9:30 am. We speak in depth about the Coming Soon Campaign at the Home Selling Seminars.
Another Coming Soon Success Story!
Staging....Common Pitfalls When Selling
There are 5 Common Pitfalls when selling. Remember a pitfall is a hidden or unsuspected danger or difficulty. An expert Realtor can help you eliminate these hidden dangers and net you the most money in the least time. Ultimately, you should hire your expert Realtor months to years in advance so you have the best chance at netting the most money.
Home Selling Pit Falls
5- Overseeing details
Today we are going to discuss the 1st pitfall....Staging and offer some tips.
Home staging is the act of preparing a private residence for sale in the real estate marketplace. The goal of staging is to make a home appealing to the highest number of potential buyers, thereby selling a property more swiftly and for more money.
Tip #1 - Unnecessary Furniture
- Less stuff = more money
- Less Stuff =more room which makes the rooms look larger
Tip #2 - Don’t Block Natural Light
- Don’t have shades closed, allow room to be flooded with light
- Do not allow your realtor to take pictures with shades closed
Tip #3 - Corners
- Important to keep furniture out of corners so people can see how big the room is
Tip #4 - Knick Knacks
- The More knick knacks you put away, the more money will make. Buyers can see the extra space.
Tip #5 - Centerpieces
- You do not need to put centerpieces on the tables. Table should be nice and open.
Tip #6 - Remove Personal Pictures
- Fix holes in the walls
- Buyers need to envision themselves in your home
Tip #7 - Clean out Closets
- Make closets look clean, neat and organized
- Storage space is important to buyers. Put summer/winter clothes away
- Less is More!
Tip #8 - Cleaning
- Have your home professionally cleaned, including the basement.
- Get rid of cob webs, clean b/w windows. Spend the extra $ it makes a HUGE difference.
Tip # 9 - Paint
- Paint goes a long way. Paint home all one color. An off white color
never white – white
- Paint all trim white
- Paint your garage.
Tip #10 - Clean out Garage & Basement
- Sweep & wash down
- Paint walls off white and floor grey or use Apoxy paint
- Buyers aren’t dumb, they want a large storage space as well. You need your garage and basement to look its best as well
- Start Packing. Your Moving! Rent a storage space.
Tip #11 - Six Panel Doors
- Six Panel Doors can transform your old home into a new home. For $30, some paint and a brushed nickel door knob you can have a room that looks like a million bucks.
Remember, You need to have a realtor who is experienced and there to protect you as well as your asset.
If you have any questions about today's topic, or about real estate in general, please give me a call at 215-757-7257 or send me an email. We'd love to hear from you!