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March 2008
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The following is borrowed from another source:
RISMEDIA, March 28, 2008-Most sellers have an emotional connection to their home and feel it deserves top dollar when being sold. Everyone naturally wants to get the most money for his or her product, but “sellers must not be hasty with this all-important decision,” cautions real estate expert Robert Jenson, founder and CEO of The Jenson Group. “Indeed, the most common mistake that causes sellers to get less than they hope for is listing the sale price too high.”
Jenson notes, “Listings reach the greatest proportion of potential buyers within the initial days and weeks after hitting the market. If a property is overpriced early on, it will be dismissed - or outright missed - by prospective buyers and may result in price reductions that will reflect poorly on the listing. Overpriced properties languish on the market, and most end up selling at a lower price than would have been realized had it been priced properly in the first place.”
To help would-be sellers foster maximum profits with their real estate transaction, Jenson offers these insights on the various elements that must be considered when establishing a fair, competitive and marketable sale price for a home:
1. Square footage: Total square footage is an important consideration when establishing a home’s sale price, but this is usually just a starting point for buyers who will use it to narrow down the field, but make an actual purchase decision based on many other factors. There are some general rules of thumb to know when considering a home’s price per square foot, such as smaller homes generally get a higher price/foot than large homes, and single stories will sell for a higher price/foot than a two story.
2. Location within community: Homes that back up to a busy street get, on average, 10-20% less than homes elsewhere in a neighborhood. Anticipate this type of obstacle and factor it into the original sale price to avoid inevitable price reductions down the road, which reflect poorly on the listing and will likely cause it to sell at a lower price than would have been realized had it been priced properly at the onset. Quiet cul-de sacs, golf or water frontage, lots that offer privacy are value adds that can certainly justify a higher sale price than other homes in a community - or be leveraged as an advantage against competing listings.
3. Views…or lack thereof: Whether it is the ocean, a downtown skyline, the mountains, water or some other desirable landscape, buyers are willing to pay a premium for views and a home should be priced accordingly. Just be realistic. A view that can only be had by standing on the counter from the second story looking out the window to the left simply doesn’t count, and it’s inadvisable to dupe a prospective buyer by adding this to the listing’s MLS description.
4. Upgrades and features: It’s a simple formula: upgrades = sold. For a home to sell quickly and for the price desired, it must be “finished” with as many structural and interior design upgrades as possible…and nothing’s too small to leverage in establishing a home’s price point. From crown molding to faux paining to door handles and cabinet handles/knobs with modern finishes, to more obvious upgrades such as appliances, window, counter, cabinet and floor treatments, to swimming pools and surround sound wiring…any functional or beautification enhancement to a home are considerations in establishing its true value and strategic sale price.
5. Community amenities: Guard-gated communities or those with amenities such as a clubhouse, swimming pool and/or fitness center are also elements that often raise a home’s price per square foot. When pricing a home without these benefits, know whether you are competing against other homes that do offer such value adds so that you can price your home as aggressively and competitively as possible.
6. Comparable sales: Price your home referencing sold comparables -price per square footage of other homes that have already sold in your community - up to 3-months old maximum, as looking beyond 3-months is simply not a realistic portrayal of current market conditions and may steer you in a wrong direction. It’s also as important to compare your listing to active competing listings - homes currently for sale, which is the best tool for honing an effective pricing strategy - particularly for highly motivated sellers.
7. Professional appraisal: Sellers often frown on the idea of paying for an appraisal before there’s even an offer on the table, but doing so is actually one of the most important things a seller can do in pricing a home relative to current market conditions. Want to sell the home quickly? Price it at or below the appraised value as buyers are educated, are shopping deals, and will recognize your fair price and be more apt to pay it with less haggling.
8. Current mortgage conditions: The current mortgage market has tightened its proverbial belt and many lenders now require higher credit scores coupled with higher down payments, which can cash strap a buyer who will most definitely be holding out for the best deal possible. Every seller naturally wants to get the most money for his or her product, but a savvy seller will understand the mortgage industry’s impact on the buyer and will price accordingly.
For more information, visit http://www.thejensongroup.com.
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Every day since January 1 this year approximately 135 residential properties have been for sale through the Americus area Multiple Listing Service (MLS). By "the Americus area" I mean primarily Americus, Sumter County, Ellaville and Schley County, Georgia.
We are almost at the end of the first quarter of the year, and to date (March 27) 40 residential properties have been sold through the members of the MLS. That's 40 properties sold in 87 days, or roughly one property out of 135 sold every two days.
If everything about the homes for sale were equal -- and, of course, we know that's not the case -- on any given day your house for sale now would be competing with approximately 135 others for a buyer. What are the chances you would be the lucky seller that day, or the next day, since just one house will be sold in two days? Not all that great.
When you factor in all the variables -- home style, size, location, condition, price range, buyer's financial ability, and others -- your chances of having the right buyer step across your threshold is about the same as meeting that person in a bazaar in Timbuktu.
You need to do everything possible to incrase the odds in your favor. Let your REALTOR help you.
Some people say we are in a "buyers' market." But where are the buyers? Those who can qualify for a mortgage loan can take their time, look to their heart's content, and cherry pick among the homes on the market. Meanwhile, sellers are praying, "Pick me. Pick me."
If you are a seller today, you have a clear choice: Price your property to sell, or price it to sit there. All REALTORS know the biggest mistake sellers make is overpricing. It's a natural tendency for you to think your house is "worth more" than a buyer thinks it's worth. "Worth" is a subjective value, ruled more by emotion than logic or reason.
Your REALTOR knows property values from an objective point of view. Carefully consider your REALTOR'S advice about pricing your property. There's nothing wrong with getting a second opinon, but don't always pick the one who agrees with you on the asking price, or the one who agrees to start out high and come down later if you don't get an acceptable offer. You will lose valuable marketing time as buyers pass up your house for a comparable one that is more realistically priced.
All REALTORS, including me, will do a Comparative Marketing Analysis for your property to show you what comparable ones have sold for recently. That will give you a ball-park figure that you might reasonably expect to get for your property. Set your price accordingly, with a little wiggle room, and you just might get "lucky."
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Met a real nice couple of retirees from Florida today. They are trying to sell their home near Lady Lake, Fla., and are thinking seriously of moving to the Sumter or Schley County area. We looked at three places. They liked them fairly well, but didn't get too excited about any of them.
I will be stay in touch with them, and try to keep them interestd in moving up here. They would be a good addition to out local populace. If they can sell their house in Florida, they'll pay cash for one up here. Like lots of other Floridians, especially retirees, they are fed up with elbow-to-elbow people and bumper-to-bumper traffic. The old Florida is mostly gone. The only place you can find a quieter, gentler lifestyle now is south Georgia, and especially southwest Georgia. If you talk to God, thank him for allowing you to live here.
I owe my clients an apology. In my previous blog I referred to my "lousy" listings. What was I thinking? They aren't lousy, they are just what they are, and there's somebody out there somewhere who will buy every property on the market -- eventually. We just have to find them. If my clients are reading this (HA!) please accept my apology for my imprudent comments.
Nobody reads these things, so I don't need to worry.
Anyway, the Florida couple looked at houses at 236 Buchanan Rd. and 197 Barnes Rd. in Sumter County, and 343 Westwood Drive in Ellaville. I think the wife leans toward the one in Ellaville -- Judy Malachowski's house -- but the husband prefers a place in the country with some land. In other words, they will buy Judy's house if they buy any one of them. We shall see.
You all know, we're in a buyer's market now. We have lots of places on the market and hardly anyone to buy them. It's not a great time to be selling, but a good time to be buying -- if you can get financing. After the recent mortgage company debacle, you have to be able to do more than fog a mirror to get a mortgage loan. But money is still available to qualified buyers. If you are thinking about buying a house or land, get pre-approved for a loan, and you will be sitting pretty. (Buyers who are pre-approved always have an advantage over those who aren't.)
Do you ever look at "Ellaville Memories" on Yahoo? That's a Yahoo group. People with ties to Ellaville and Schley County post memories and recollections, and interact with each other. If you haven't visited the website, try it, especially of you have Ellaville or Schley County roots.
I read that Springtime Ellaville is scheduled for April 15. I hope to see you there. Also, think about attending the Ellaville-Schley County Chamber of Commerce annual meeting and dinner April 11. It's at 7 p.m. at Schley County High School. Ellaville native Steve Gurr will be the speaker. Steve is one of several Ellaville natives who made great careers for themselves, and are distinguished in their fields. Ellaville and Schley County, while not well known in the grand scheme of things, have produced quite a few outstanding people.
Who, would you say, is Ellaville's most outstanding citizen of all time?
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