An Important Message About the Value of Your House
Your house has many values – one to the assessor, others to your lender and insurance company, and yet another value to you, the owner. It also has different values to prospective buyers (“market value”) depending on their needs, desires and financial resources.
The best price obtainable at any given time can only be determined by thoroughly and aggressively testing the market and challenging the competition. In the final analysis, the market dictates value, based on current conditions, the current supply of buyers and the current competition.
The price at which you choose to market your property will be, at best, an estimate of what you think those “test results” are likely to be once your house is placed on the market. To assist you in the selection of a price, a Competitive Market Analysis has been prepared and is included in the customized Marketing Action Plan for your property.
Buyers engage in comparison shopping – The Competitive Market Analysis focuses on properties now on the market which are competing for the attention of those buyers. In addition, houses that have recently sold and those that were on the market and did not sell are also examined. These properties tell us what buyers in the recent past were and were no willing to pay.
The best price obtainable for your house will ultimately be determined by the market. It is highly unlikely that a buyer will pay more for your property than could be paid for another property with similar amenities and features. All other considerations aside, houses that do not meet the current competition in price and terms simply do not sell. In fact they may even help sell the competition.
The price at which your house is marketed must attract enough attention among buyers and brokers to generate showing and offers.
What is the Best Price Obtainable for Your Property?
Buyers dictate the best price obtainable.
Buyers compare properties – homebuyers engage in comparison shopping. They will not pay more for a property than they could pay for another, similar one.
Realistic prices attract buyers’ attention – The price at which your house is marketed must attract enough attention among buyers to generate showings and offers.
A Competitive Market Analysis shows what buyers are willing to pay in today’s market.
Recently sold – reveals what buyers have actually paid for similar properties.
Currently for sale – shows the properties that are competing for buyers’ attention right now.
Did not sell – demonstrates what buyers have not been willing to pay under current market conditions.
A Competitive Market Analysis will give you a solid foundation for the realistic pricing of your property.
What Affects the Market Value of Your Property?
In understanding the market value of your property, we must deal with some factors that are “given” – we have no control over them: Physical qualities of your property
- Size of house and lot
- Floor plan and architectural style
- Market conditions
- Interest rates and availability of financing
- Buyer demand
- Prices of recently sold properties
- Seasonal demand
- The competition
- The number of similar properties for sale
- Their prices, financing terms, location and physical condition
Some factors have no effect on the current value of your property Original price
- What you originally paid for your house
- Needed proceeds
- The cash proceeds you want or need from the sale
- What people say your property is worth
What Home Sellers Want
We have asked thousands of home sellers what is important to them. Most share five priorities:
Price & Communications
The best price and terms obtainable and frequent communication by us to for their property to address their concerns.
Time & Diligent Effort By Us
The shortest possible time on evidence that we are working the market diligently on their behalf.
The least inconvenience to the sellers, with us managing the details. Our aim is to achieve these goals for every seller.
Risk of Overpricing – Taking Longer to Sell The higher the price above realistic market value, the more time it will take to sell. Pricing your property competitively will help your property sell in the shortest time possible.
Risk of Overpricing – Missing Peak Selling Activity
- A property generates the most interest among brokers and buyers when it first goes on the market.
- The number of showings is greatest during this time – if it is priced at realistic market value.
Starting too high and dropping the price later misses the excitement and fails to generate as much activity.
- It may even become necessary to drop the price below market value to compete with new well-priced listing.
- Pricing your property competitively from the start will generate the most activity among brokers and buyers.
The Sale Process
The sale of a property is a complex process, and we will work with you at every step to make it as smooth as possible.
Helping buyers find your property. We simplify the home buying process to make it easier for buyers to find and buy the right property. The HomeBuyer Guidebook is one tool that helps us do that.
Qualifying buyers. We will seek financial qualifying information on all buyers submitting purchase offers on your property. Our goal is to pre-qualify or pre-approve the buyer through a reputable lender.
Purchase offers. We will be with you during the negotiation to help you obtain the most favorable price and terms.
Closing the sale. We will work on your behalf to achieve the successful closing of the sale.
Promotion to Other Brokers We will promote your property to other reputable, professional brokers and sales associates in the area.
Association of Realtors – Your property will be promoted through the local Association of Realtors.
Information sheets – Flyers describing your property will be distributed to local real estate professionals.
Broker open house – We will conduct a special open house and tour to introduce your property to other brokers.
Other brokers’ buyers – We will encourage other brokers to show your property to their prospective buyers.
By cooperating with other brokers we can reach the greatest number of prospective buyers.
Multiple Listing Service (MLS)
The Multiple Listing Service provides local real estate professionals with immediate computer access to information about your property.
Helps match buyers to your property – MLS information helps other brokers see how your property can meet their buyers’ needs.
Maximum exposure – Your property’s debut on the MLS will help us to achieve the greatest marketing impact.
NorWisRealty.com LLC Sign
We will place a NorWisRealty.com LLC “For Sale” sign on your property to help generate calls from prospective buyers.
Constant promotion – The “For Sale” sign promotes your property 24 hours a day, 7 days a week.
Interested buyers – Prospective buyers who call on your property sign have seen your neighborhood and the exterior of your property – and they are eager for more information!
When an offer is presented, we will negotiate on your behalf to help you obtain the most favorable price and terms.
Understanding your choices – Our aim is to reach a purchase agreement that is favorable and protective for you. You will be able to accept, reject or counter any offer that is submitted.
Meeting your needs – We will present all offers in an objective fashion, review and explain their terms and conditions (including an estimate of your net proceeds), and help you evaluate how an offer fits your goals.
Let us help you with this big event in your life. Call or message us today!