Pricing your home to sell: it seems like a simple concept, doesn’t it? Not at all! Real estate is competitive and you want to come on top! To do so, you have to be ready to price your home correctly.
According to CoreLogic’s latest Home Price Index, home values have risen at over 6% a year recently. However, values have started to slow to 3.6% in the last 12 months. By next year, CoreLogic predicts home values will be 5.4% higher. In recent years, many homeowners chose to list home slightly above market value. The idea was to leave room for negotiation. Unfortunately, this dramatically decreases the number of buyers seeing their listing. (see the chart below).
Compelling homes drive a higher price. There are features that make a compelling home. Big ticket items or rare, hard to find features such as irrigated land or a newly remodeled kitchen. Perhaps, a decked-out backyard with all the bells and whistles. There is plenty to add to the compelling list. I always use these compelling features to the seller’s advantage. Remember, if it’s not compelling, it’s not selling. When you’re ready to list your home, we’ll either showcase the compelling features or give it a compelling price.
Sellers may adore the improvements and renovations they’ve made. They also may want to add in those costs to the asking price. But remember, not every change is going to land a huge return on investment. Curious about what you can expect on those fixes? Check out Remodeling Magazine‘s annual ‘Cost Versus Value’ report to get an idea of which upgrades yield the biggest bang for your buck. Also, as you’re making changes, bear in mind that the infinity pool you view as an asset may just seem like a huge liability to a buyer.
Additionally, before you start remodeling your home with new features, please invite me in to discuss your ROI (return on investment). In some neighborhoods a pool will add about $12,000 towards the homes value whereas others bring in the surplus of $50,000 plus.
Finally, there is the dreaded appraisal moment. Just because we get the offer with the crazy high price we asked for doesn’t mean it will appraise. This is one of my favorite moments in the selling process and most stressful. On some homes, I spend HOURS putting together a packet of supportive information to provide the appraiser as to how/why the sellers and buyers came to an agreement on the record high value for the area.
Do you want to sell your home at a record high price in record time? Of course!