Location, condition and price are three essential ingredients for a successful home sale.
Sellers have the most control over price. If the market is robust and there haven’t been any serious offers within the first couple of months, the home is probably overpriced. Even if you’re confident the home was priced correctly in the first place, market conditions can change in the blink of an eye. If you don’t get solid inquiries within a reasonable period, ask your BREA agent if a new comparative market analysis (CMA) is in order.
Besides looking at what comparable homes sold for, an agent can examine prices on stale or expired listings. Forget about comparing your price with other asking prices. An asking price is simply that – an asking price. Actual sales prices are what count.
However, you’ll learn a lot from asking prices on comparable homes that haven’t sold within a reasonable period, or on listings that expired. Make sure any new price reduction is in line with final sales prices and notably below expired listing prices on comparable properties. When pricing a home, the biggest mistake a seller makes is using other asking prices to value their own property.
Location – Everyone knows the mantra of real estate is Location, Location, Location. Location is critical when determining a home’s value.
What are the most important ingredients in a Location, besides being a nice area? It may be a friendly community, or access to an airport, grocery store or medical clinic. Obviously, beachfront or elevated property with sea views command higher prices.
Condition – The condition of a home has a significant effect on the listing price.
A well-maintained home with few cosmetic issues will obviously be worth more than a similar home in the same area that needs work. A well-maintained home in a mediocre neighbourhood won’t fetch the same price as a comparable home in a more desirable neighbourhood.
Potential buyers are more likely to see a clean, well-maintained home as a good investment and they will be willing to pay more for it. A clean home helps buyers appreciate the true value, which will positively impact the selling price.
By Mike Lightbourn
Questions or comments? Contact him at [email protected].
(Mike Lightbourn is president of Coldwell Banker Lightbourn Realty)
