Whether you are buying or selling property, knowing what’s it’s worth, helps.
Value is determined …
1) From an entirely emotional standpoint … (That would be the buyer who “falls in love and can’t live without”).
2) From an analytical standpoint … (That comes from comparing it with recent relevant sales).
Properties that sold (and closed) during the past 3-6 months… properties that are similar in size, year-built , with similar amenities and comparable lot sizes … properties within your (relatively!) immediate neighborhood … those are the sales you’ll want to pull and compare.
You’ll want to price it (and market it!) with 3 objectives in mind:
1) To get visibility
2) To spark buyer interest and entice them to come and see the property …
3) To get them to want to put in an offer.
Getting it to appraise is the hurdle that comes next. And unless yours happens to be a cash buyer, your buyer’s mortgage lender will require an appraisal, which can derail a transaction… unless your buyer can (and is willing to) come up with additional funds to close … or unless you are willing to renegotiate on the price/terms.
Price really has relatively litte to do with what you need or want to sell your house for … You may have spent a pretty-penny updating and improving your house but return on investment isn’t necessarily determined by what you actually spent. Some improvements bring a relatively high return on investment… others bring less. Your improvements may put your house at the top of the “available homes listed” and make yours more appealing than those without updates. And that’s good … because you WANT buyers to come and see. No one buys without ‘seeing’. But price will in all likelihood be determined (at least in part) by recent relevant sales – especially if your buyer is getting financing and is dependant on an appraisal.
By pricing it close to what it will actually sell for, you’ll tend to a higher purchase offer than if you overprice price it to begin with. Pricing a house too high brings in dishearteningly low offers. Instead, if you price it competitively (and market it well) buyers tend to see value, and offer closer to asking price … because they are motivated to ‘win’.
If you’re looking to sell … Alexandra and I would love the opportunity to talk with you about listing and selling it for you … You can reach us at 305 793-1365 or connect with The Restivo Team here … or send us an email restivo.v@ewm.com . It’s an interesting market … There are buyers looking for properties and inventory is quite low in South Florida right now. If you thinking about selling, this might possibly be a good time. Call anytime!
