Recipe For A Sale
There are 5 main ingredients that make up the sale of your home:
We usually cannot move a home! To coin the favorite phrase of appraisers: "Location, Location, Location.” The pricing of your property must reflect its location.
The upkeep and presentation of your property is crucial to obtain the highest value for your home in any given market at any given time. The pricing of your property must reflect its condition.
The more terms available on your property the more potential purchasers you reach. The pricing of your property must reflect the kinds of terms available to purchase it.
eg: Assumable low rate mortgage / Vendor take-back Mortgage / Mortgage buy-down etc.
4. THE MARKET
External factors such as interest rates, competition and the economy all make up and influence the state of the market when you sell your home. The pricing of your property must reflect the current status of the market.
Price is the number one factor in the sale of a home. A property is really only worth what one person is willing to pay another to gain ownership of it.
PRICE MUST BE IN DIRECT RELATIONSHIP TO THE 5 ABOVE INGREDIENTS AND IT IS THE MOST IMPORTANT OF ALL.
When all 5 of the ingredients are in agreement... we have a sale!
The Market Value of Your Home Is Determined In Several Ways...
The Market Value of Your Home IS NOT:
What you have in it.
What you need out of it.
What it is appraised for.
What you heard your neighbor’s house sold for.
What the tax office says it is worth.
What it is insured for.
Based on memories and treasures.
Based on prices of homes where you are moving.
The True Market Value of Your Home Is...
What a Buyer is Willing to Pay for the Property - TODAY:
Based on today’s market.
Based on today’s competition.
Based on today’s financing.
Based on today’s economic conditions.
Based on the Buyer’s perception of property condition.
Based on location.
Based on normal marketing time.
As a Seller You Control:
The price you ask.
The condition of the property.
Access to the property.
As a Seller You Do Not Control:
The motivation of your competition.
AGENT elimination - if agents are not previewing your property, or if they preview, but do not show it, they are eliminating your property.
BUYER elimination - if your home is being shown with no results, buyers are finding better properties in your price range.
In either case, this is an indication that your home is not priced at current market value.