BUYERS DETERMINE HOME VALUES!

Buyers determine the value of your home.
Buyers determine the value of your home.
Buyers determine the value of your home.

OK, there, I have said it.  Now, if you are planning on putting your home on the market this spring in the North Attleboro area, please repeat this three times to yourself – out loud 🙂  There is no getting away from this concept.  As a listing agent, I present an analysis of price for your home.  When you start thinking about your list price,  remember, almost everyone has access to this same information I am presenting – buyers, buyer’s agents, and appraisers working for the buyers’ banks.  Don’t think you can fool anyone into believing your property is worth more than it is.

First I  look at Sold prices for those homes with similar features that have Sold in your area recently.  Sold prices indicate what a buyer was willing to pay for that type of home in that location.  Yes, there are negotiations that go back and forth between buyers and sellers, but ultimately the buyer makes the final decision whether to proceed with the purchase of your home.   Simply put, you can’t sell your home without a buyer even in the best of sellers’ markets 🙂   As a listing agent, I have to consider “Sold” data first and foremost as those closed properties tell the story of the housing market you are about to enter as a seller.   Pleeeeeeeeaaaaaaaaaaaaaaaassssssssse listen and pay attention to those numbers.  When listing your home, it is important switch your thinking from a seller’s perspective  to that of as an educated buyer to make the best decisions.

At our listing appointment, I will also show you active sales to give an indication of your current competition – definitely something to consider especially if you are looking for a quick sale.  If you need a quick sale, you should price it slightly under the competition. If you have a little time and desirable features  that set your home above the rest (and not just make it unique and desirable to a smaller set of buyers!!), you should price it competitively or perhaps slightly higher  BUT you have to be reasonable or you will lose market time and buyers’ attention.  The activity you have on the first two weeks of your listing is great indicator of how buyers and agents feel about your property and the listing price.

Consider these thoughts when establishing your list price:

•What you paid for your property does not effect its value.

•The amount of money you need to get out of the sale of your property does not effect its value. Buyers aren’t just going to give you more money because you want it or need it.

•What you think it should be worth because your neighbor sold for “x” last year does not effect today’s value (typically we look back 2-3 months). And keep in mind, neighborhood “chat” is not often the best way to get accurate information.

•What another real estate agent “says” your property is worth does not affect its value. There must be data to back up any price opinion and a buyer willing to pay to confirm it.

•The value of your property is determined by what a ready willing and able buyer will pay for it in the open market, which will be based upon the value of other recent closed sales, the amount of available inventory, rates and other variable.   BUYERS DETERMINE VALUE!!

•DO NOT automatically list with the agent that suggests that you list for the highest price.  Look at the data used to determine that list price – would it seem reasonable to you if you were a buyer?

There are a lot of variables that go into pricing a home.  Unique properties can present a challenge but again, put yourself in a buyer’s shoes.  What would you consider a reasonable value if you were to purchase your house on the open market?  What kind of “deal” would you be looking for on this type of property?  What is the toll on your life if you list too high and your home lingers on the market for an extended period of time?  Can you afford this financially?  Can you afford this emotionally?  I do my best as a listing agent, to consider all of these variables when listing your home.   Together, we can combine the current housing market data and your honest situation to produce the best pricing strategy.

Jen McMorran, Realtor       508-930-5259           jen.mcmorran@verizon.net   

Let me know how I can help you…