Accredited Buyer Representative

Certified Internet Specialist

Accredited Seller Representative 

Accredited Home-Staging Specialist 

 How To Price Your House Correctly & Appraisels.

What You Need To Know...

What Is Your Home Worth Today....

Why effective pricing is the key to a successful property sale.

If you price your house or property too low you’ll get thousands of dollars less than you would have if you had done your homework to find out what your house or property is really worth.

If you price it too high, then your house/property might sit on the market for months on end waiting for a buyer that may never arrive. If this happens you’ll no doubt get discouraged as you continue to pay your mortgage interest, taxes, property insurances etc.  When you do finally reduce the price, you may have to sell the property for less than you would have, if you had set the right price in the first place.  

Most property buyers will want to know how long a house/property has been on the market. They may think something is wrong with it, or that you are desperate to sell - which you might be.

What you “want” or might “need” in monetary terms from the sale is irrelevant.  A home buyer will not be interested in your personal circumstances. Your house is only worth what someone is prepared to pay for it, which in most cases will be the current market value.

The right price is usually based on a comparison with what similar properties have sold for recently in that area. Depending on where you live, the recorded prices are generally published and not confidential.  Again, depending on which state or country you are in; you could ask a Certified Real Estate Appraiser, staff at the local courthouse, the real estate institute, or even a local real estate agent may be able to provide the true recorded prices. Get that information.

Why Similar Homes For Sale Can Vary In Price By More Than $20,000 

Similar homes for sale can vary in price by $10,000, $20,000 or even more. This can be confusing for both buyer and seller alike.

Pricing variances are sometimes attributed to unmotivated sellers waiting for buyers willing to pay their inflated prices. But, as many sellers discover, "what you ask and what you get" can be totally different.

Even with the same asking price, similar homes can end up selling for remarkably different prices. Again the actual selling price can vary by $10,000 to $20,000 for what appears to be exactly the same thing.

Some sellers think that just because a home in the same block sold for X amount, they can sell their home for the same price. As many find out, it doesn't always work out that way.

Important Home Appraisal Point

A lot depends on the buyer and the seller and how keen each of them is to finalize the transaction. In other words how motivated is the buyer to buying and how motivated is the seller to selling? Does the seller have to sell? How desperate is the seller? How urgent is the sale?

So, it's not uncommon to have two almost identical homes for sale, side by side, sell for radically different prices.
Seller "A" may WANT to sell and seller "B" may NEED to sell. The motivation for each is quite different, and so may be the pricing strategies. Then there is supply and demand.

The property market can vary from month to month depending on the number and quality of homes for sale and on how many buyers are in the market at any given time. One seller may get $20,000 more than a similar property, simply by selling a month earlier or later. 

Another Important Factor In Home Appraisals

Other factors can come into play too. Like, how good are the respective buyers and sellers at negotiating the deal? How capable are the agents? And, sometimes a buyer pays a higher or lower price depending on the financing or settlement terms. And, then there is the property itself...

Home Appraisals Based On How The Property Stacks Up:

Two homes for sale may look the same from the outside but be immeasurably different inside. One may still have 70's, 80's or 90's decor whilst the home next door may have undergone major updating and interior improvements.

There are also exterior factors that can affect the price of similar houses in the same neighborhood. For instance, homes on primary ingress and egress streets (the main streets that lead in and out of a tract), generally appreciate more slowly than those within the tract that are not on primary streets.  This is often because primary ingress/egress streets generate more traffic and are therefore, generally less desirable to a buyer. Such homes for sale may suffer lower prices.

Within a tract, a home in a cul-de-sac may generate a higher price for the same reason. Less traffic is a big attraction for many buyers. Cul-de-sacs are often like a maze and so they discourage through traffic. This can be a big benefit for those buyers seeking residential privacy. The more benefits the higher the price!

Even a property on one side of a street can sell for more than a similar property on the other side. There are factors to consider like sun, ease of access, privacy etc.

Home Appraisals Based On Where You Live

And, certain communities, because of their name, are more prestigious than others. As an example: parts of Beverly Hills (in California) are divided from other communities by a street. The homes on the Beverly Hills side of the avenue command a higher price than those in the non-Beverly Hills community across from it.  The reason is simple; Beverly Hills, is known worldwide for its high-end shopping, exclusive housing and impeccable name. Homes for sale are priced accordingly.

Home Appraisals Based On Other Factors

Price can also be influenced by commercial or industrial developments adjacent to the tract. How desirable or undesirable are they? An astute buyer will check a community's master plan before committing to a binding sale.
This is a must, especially if a tract (or home) is surrounded by vacant land. The community master plan (town plan) is usually drawn up by planners within the city or county and approved by a local planning commission.

In short; before buying a home for sale, always find out what is going to be built nearby and determine how it might impact the value of the tract. This background research will be time well spent, especially if you uncover something that could potentially affect the value of the home for sale.

In summary: finding out why one home for sale is worth more than another, is worth the effort. This is especially so when you consider that the purchase or sale of a home is usually the largest, single financial transaction most people make in a lifetime. 

4 Reasons To Consider A Full Property Appraisal 

A full property appraisal may cost you anywhere from $250 up. It depends on the charging methods the property appraiser uses. Depending on where you live, the fee could be based on the property value, or perhaps the complexity of the particular appraisal.

A full property appraisal will involve a Certified Real Estate Appraiser visiting your property for an inspection. He or she will take photos, measurements and prepare a full report including market comparisons.

Property Appraisal Reason #1

Buyer’s are suspicious of price and will probably believe that your price is grossly inflated. A formal written property appraisal could put a stop to any argument. A written property appraisal is irrefutable evidence that the price was arrived at in a scientific way, rather than just by “pulling figures out of the air.”  It will include photos, measurements and details of comparable sales. It is a professionally prepared document that you can show to any prospective buyer.

A property appraisal is, in my opinion, the best way for a motivated serious seller to determine the most profitable asking price.

Property Appraisal Reason #2

Having a full written property appraisal can put everyone’s minds at ease. The buyer will feel assured that he or she is not being taken advantage of. No one likes to get “ripped off.” Having a property appraisal may “fast track” the negotiations, as your buyer may have more confidence in finalizing the deal.

Property Appraisal Reason #3

A written property appraisal my help the buyer borrow the required funds to buy the property. Lenders always want “hard” evidence before they are willing to risk their money in property deals.

Property Appraisal Reason #4

A written property appraisal might prove to be good ammunition to fire back at “bargain hunters” who will try to pressure you into selling your property at a “giveaway” price. A written property appraisal is hard to argue against.