Determining the Value of Your Home

Size: px

Start display at page:

Download "Determining the Value of Your Home"

Clarence Rice
6 years ago
Views:

1 Determining the Value of Your Home A Comparative Market Analysis (CMA) is essential to determine the value of residential property. Location and characteristics of the property are the key elements in determining value. Therefore, the basis for valuation is similar properties in your area. The market analysis takes into account the amount received from recent sales of comparable properties and the quantity and quality of comparable properties currently on the market. The desired end result is to find a price that will attract a willing and able buyer in a reasonable time. Once the value of your home has been determined, you can decide on an offering price that will achieve your goals. Generally, the price should not exceed the value by more than 5% or potential buyers may not even make offers. Naturally, if you want to sell quickly your asking price should be very near the value. The following are a few things to keep in mind about pricing: Realistic pricing will achieve maximum price in a reasonable time. Your cost or profit desire is irrelevant; the market determines the price. The cost of improvements are almost always more than the added value. Houses that remain on the market for a long time do not get shown. A house that is priced right from the beginning achieves the highest proceeds.

The Importance of Intelligent Pricing Determining the best asking price for a home can be one of the most challenging aspects of selling a home. It is also one of the most important.

If you list at a price that is below market value, you will ultimately sell for a price that is not the optimum value for your home.

Therefore, by pricing your property at market value, you expose it to a much greater percentage of prospective buyers.

2 The Importance of Intelligent Pricing Determining the best asking price for a home can be one of the most challenging aspects of selling a home. It is also one of the most important. If your home is listed at a price that is above market value, you will miss out on prospective buyers who would otherwise be prime candidates to purchase your home. If you list at a price that is below market value, you will ultimately sell for a price that is not the optimum value for your home. As Figure 1 illustrates, more buyers purchase their properties at market value than above market value. The percentage increases as the price falls even further below market value. Therefore, by pricing your property at market value, you expose it to a much greater percentage of prospective buyers. This increases your chances for a sale while ensuring a final sale price that properly reflects the market value of your home. Figure 1 - Percentage of Buyers by Asking Price Another critical factor to keep in mind when pricing your home is timing. A property attracts the most attention, excitement and interest from the real estate community and potential buyers when it is first listed on the market (see Figure 2). Improper pricing at the initial listing misses out on this peak interest period and may result in your property languishing on the market. This may lead to a below market value sale price (see Figure ), or, even worse, no sale at all. Therefore, your home has the highest chances for a fruitful sale when it is new on the market and the price is reasonably established. Figure 2 - Activity versus Timing We can give you up-to-date information on what is happening in the marketplace and the price, financing, terms, and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle. Figure - The Effect of Overpricing

3 Key Market Factors How long does it take to sell a property? Some properties sell in a few days, others may take several months. By recognizing some key factors that influence marketing a home, you can get significant control over market time. The proper balance of these factors will expedite your sale: Location Location is the single greatest factor affecting value. A neighborhood s desirability is basic to a property s fair market value. Competition Buyers compare your property against others in that neighborhood. Buyers interpret value based on available properties on the market. Timing The real estate market may reflect a buyers or sellers market. Market conditions cannot be manipulated; an individually tailored marketing plan of action must be developed for each property. Condition The property condition will affect price and speed of sale. Optimizing physical appearance and advance preparation for marketing maximizes value. Terms The more terms available, the larger the market, the quicker the sale and the higher the price. Terms structured to meet your objectives are important to successful marketing. Price If the property is not properly priced, a sale may be delayed or even prevented. Reviewing the Comparative Market Analysis assists you in determining the best possible price.

4 Comparable Properties Currently On The Market 2 Symphony Cir List Price: $789,000 Yr Blt: 2008 Lot Size: 1.14 Acres Area: Laurelford Fin Sqft: 5484 Style: Modern Elem Sch: Hunt Valley Bedrooms: 4 Levels: Middle Sch: Ridgely Bathrooms: /1 Const: Cedar Siding High Sch: Dulaney Heating: Heat Pump Const: Stone Amenities: Walk-In Closet Fuel: Electric Parking: 2-Car Garage Amenities: Wet Bar Cooling: Central Air Garage Spaces: 2 Other Rms: Family Room Water: Well Basement: Finished Other Rms: Game Room Remarks: Gorgeous home available for move in immediately! Inground Pool in backof house, Fabulous Master Bedroom, Spacious Rooms." Currently On The Market Cleghorn Road List Price: $814,900 Yr Blt: 1986 Lot Size: 1 Acre Area: Laurelford Fin Sqft: 862 Style: Modern Elem Sch: Pot Springs Bedrooms: 4 Levels: Middle Sch: Cockeysville Bathrooms: 2/2 Const: Brick High Sch: Dulaney Heating: Heat Pump Const: Stone Amenities: Wet Bar Fuel: Electric Parking: Driveway Amenities: Game Room Cooling: Ceiling Fan Garage Spaces: Other Rms: Study/Library Water: Conditioner Basement: Full Other Rms: Finished Attic Remarks: PARK-LIKE GROUNDS. MASTER BEDROOM SUITE WITH BALCONY. STAINED GLASS WINDOWS& LARGE FAMILY ROOM, WET BAR AND ATRIUM DOOR TO SIDE PORCH. LIVING ROOM WITH ATRIUM DOOR TO PATIO. LOTS OF WINDOWS. FLOORS HAVE BEEN REFINISHED. VERY CHARMING HOME WITH ELITE AMENITIES." Currently On The Market 121 Beaver Dam Rd List Price: $849,900 Yr Blt: 1984 Lot Size: 1.89 Acres Area: Ivy Hill Fin Sqft: 4090 Style: Classic Elem Sch: Hunt Valley Bedrooms: 4 Levels: Middle Sch: Ridgely Bathrooms: /2 Const: Cedar Siding High Sch: Dulaney Heating: Forced Air Const: Wood Amenities: Wet Bar/Bar Fuel: Bottled Pr Parking: Driveway Amenities: Wood Floors Cooling: Central A/C Garage Spaces: Other Rms: Family Room Water: Well Basement: Unfinished Other Rms: Wine Cellar Remarks: HANDCRAFTED OAK FOYER AND STAIRCASE. THE ATTENTION TO ARCHITECTURAL DETAILIS OUTSTANDING. AMENITIES SUCH AS HARDWOODS, MARBLE, CERAMIC AND BRASS ADD THE FINISHING TOUCHES!"

Comparative Market Analysis 2 Symphony Cir Status List Price List$ SQFT Sold Price Sold$ SQFT 12218 Cleghorn Road 121 Beaver Dam Rd 84 Warren Rd 20 Laurelford Ct A $789,000 A $814,900 A $849,900 A

5 Comparative Market Analysis 2 Symphony Cir Status List Price List$ SQFT Sold Price Sold$ SQFT Cleghorn Road 121 Beaver Dam Rd 84 Warren Rd 20 Laurelford Ct A $789,000 A $814,900 A $849,900 A $885,000 A $892,000 Cockeysville Laurelford 2008 Cockeysville Laurelford 1986 Cockeysville Ivy Hill 1984 Hunt Valley Hillsyde 1994 Cockeysville Laurelford Backs To Trees 1.14 Acr Modern 862 Backs To Trees 1 Acre Modern 4090 Back To Woods 1.89 Acr Classic 4584 Backs To Trees 1.74 Acr Colonial Backs To Trees 9 Acres Colonial Bedrooms Bathrooms Const Roofing Basement 4 /1 Cedar Siding Cedar/Shake Finished 4 2/2 Brick Shingle/Asphalt Full 4 /2 Cedar Siding Shingle/F-Glass Unfinished 5 4/1 Brick Composite Full 4 2/1 Vinyl Shingle Full Basement Heat Fuel Cool Parking Walkout Level Heat Pump Electric Central Air 2-Car Garage Unfinished Heat Pump Electric Central A/C Driveway Walkout Level Forced Air Bottled Propane Ceiling Fan Driveway Unfinished Heat Pump Electric Central A/C Driveway Finished Forced Air Electric Central A/C Garage 2 Deck Well Septic 2 Balcony Conditi Septic 1 Patio Well Septic 0 Deck 60+ Gal Septic 1 2 Balcony Well Septic 2 Walk-In Closet Wet Bar Home Warranty In-Law Suite Family Room Wet Bar Game Room Drapery Rods Mud Room Study/Library Wet Bar/Bar Wood Floors W/W Carpeting Attic-Unfinishe Family Room -Car Garage W/W Carpeting Shades/Blinds Family Room Sun Room Wood Floors Flue For Stove Walk-In Closet In-Law Suite Family Room Sold Date DOM City Neighborhood Year Built Fin SqFt Lot Desc Lot Size Style Levels Garage Spaces Exter Feat Water Sewer # Fireplaces Amenities Amenities Amenities Other Rms Other Rms

6 Comparative Market Analysis 7 Deep Run Court Status List Price List$ SQFT Sold Price Sold$ SQFT 2 Symphony Cir Cleghorn Road 121 Beaver Dam Rd 84 Warren Rd A $789,000 A $814,900 A $849,900 A $885,000 Sold Date DOM City Neighborhood Year Built Hunt Valley Orchard Valley 1988 Cockeysville Laurelford 2008 Cockeysville Laurelford 1986 Cockeysville Ivy Hill 1984 Hunt Valley Hillsyde 1994 Fin SqFt Lot Desc Lot Size Style Levels 2160 Backs To Trees 1.04 Colonial 5484 Backs To Trees 1.14 Acr Modern 862 Backs To Trees 1 Acre Modern 4090 Back To Woods 1.89 Acr Classic 4584 Backs To Trees 1.74 Acr Colonial 2 Bedrooms Bathrooms Const Roofing Basement 2/1 Cedar Siding Cedar/Shake Fully Finished 4 /1 Cedar Siding Cedar/Shake Finished 4 2/2 Brick Shingle/Asphalt Full 4 /2 Cedar Siding Shingle/F-Glass Unfinished 5 4/1 Brick Composite Full Basement Heat Fuel Cool Parking Walkout Level Heat Pump Electric Central A/C Garage Walkout Level Heat Pump Electric Central Air 2-Car Garage Unfinished Heat Pump Electric Central A/C Driveway Walkout Level Forced Air Bottled Propane Ceiling Fan Driveway Unfinished Heat Pump Electric Central A/C Driveway 2 Deck Well Septic 2 2 Deck Well Septic 2 Balcony Conditi Septic 1 Patio Well Septic 0 Deck 60+ Gal Septic 1 Auto Gar Dr Opn Built-In Bookcases Mba/Sep Shwr Den/Stdy/Lib Family Room Walk-In Closet Wet Bar Home Warranty In-Law Suite Family Room Wet Bar Game Room Drapery Rods Mud Room Study/Library Wet Bar/Bar Wood Floors W/W Carpeting Attic-Unfinishe Family Room -Car Garage W/W Carpeting Shades/Blinds Family Room Sun Room Garage Spaces Exter Feat Water Sewer # Fireplaces Amenities Amenities Amenities Other Rms Other Rms

7 Comparative Market Analysis Summary Currently On The Market Address Neighborhood Style Yr Blt Beds Bath Sold Price List Price 2 Symphony Cir Laurelford Modern /1 $789, Cleghorn Road Laurelford Modern /2 $814, Beaver Dam Rd Ivy Hill Classic /2 $849, Warren Rd Hillsyde Colonial /1 $885, Laurelford Ct Laurelford Colonial /1 $892,000 9 Jules Brentony Shawan Colonial /1 $898, West Padonia Rd Springhill Farm Modern /1 $899,500 Average of 7 Properties: $861,14 Min: $789,000 Max: $899,500 Median: $885,000 Under Contract Address Neighborhood Style Yr Blt Beds Bath Sold Price List Price 1707 Cuba Rd Hillsyde Cape Cod /1 $89,000 9 Ivy Reach Court Ivy Reach Colonial /1 $842,925 Indian Spring Court Sherwood Colonial /1 $850, Foxtrot Ct Laurelford/Ivy Colonial /1 $899, David Luther Ct Laurelford/Ivy Colonial /1 $899,000 Average of 5 Properties: $865,985 Min: $89,000 Max: $899,000 Median: $850,000 Recently Sold Address Neighborhood Style Yr Blt Beds Bath Sold Price List Price 19 Chris Eliot Ct Ivy Hill Colonial 1989 /1 $725,000 $849, Old Padonia Rd Laurelford Modern /1 $755,000 $789,000 4 Chamaral Ct Ivy Hill Colonial /1 $775,000 $799, Boxer Hill Rd Sherwood Colonial /1 $790,000 $850, Jerome Jay Dr Laurelford/Ivy Colonial /1 $80,000 $899, Springhill Farm Ct Springhill Farm Cottage /1 $850,000 $899, Shawan Rd Hillsyde Classic /2 $855,600 $885, Warren Rd Laurelford/Ivy Colonial /1 $885,000 $899,000 Average of 8 Properties: $808,200 Min: $725,000 Max: $885,000 Median: $810,000 Off The Market Address Neighborhood Style Yr Blt Beds Bath Sold Price List Price 10 Loveton Cir Hillsyde Classic /1 $885, Boxwood Lane Laurelford Colonial /1 $892,000

Map of Comparable Properties Ref # Status Address 1 Subject Property 7 Deep Run Court 2 Currently On The Market 2 Symphony Cir Currently On The Market 12218 Cleghorn Road 4 Currently On The

8 Map of Comparable Properties Ref # Status Address 1 Subject Property 7 Deep Run Court 2 Currently On The Market 2 Symphony Cir Currently On The Market Cleghorn Road 4 Currently On The Market 121 Beaver Dam Rd 5 Currently On The Market 84 Warren Rd 6 Currently On The Market 20 Laurelford Ct 7 Currently On The Market 9 Jules Brentony 8 Currently On The Market 510 West Padonia Rd

9 Map of Comparable Properties Ref # Status Address 1 Subject Property 7 Deep Run Court 2 Currently On The Market 2 Symphony Cir Currently On The Market Cleghorn Road 4 Currently On The Market 121 Beaver Dam Rd 5 Currently On The Market 84 Warren Rd 6 Currently On The Market 20 Laurelford Ct 7 Currently On The Market 9 Jules Brentony 8 Currently On The Market 510 West Padonia Rd

10 Currently On The Market Description 2 Symphony Cir List Price: $789,000 Gorgeous home available for move in immediately! Inground Pool in back of house, Fabulous Master Bedroom, Spacious Rooms." Property Details City: Cockeysville Neighborhood: Laurelford Year Built: 2008 Fin SqFt: 5484 Lot Desc: Backs To Trees Lot Size: 1.14 Acres Style: Modern Levels: Bedrooms: 4 Bathrooms: /1 Const: Cedar Siding Roofing: Cedar/Shake Basement: Finished Basement: Walkout Level Heat: Heat Pump Fuel: Electric Cool: Central Air Parking: 2-Car Garage Garage Spaces: 2 Exter Feat: Deck Water: Well

Currently On The Market 2 Symphony Cir Property Details List Price: $789,000 City: Cockeysville Neighborhood: Laurelford Year Built: 2008 Fin SqFt: 5484 Lot Desc: Backs To Trees Lot Size: 1.

11 Currently On The Market 2 Symphony Cir Property Details List Price: $789,000 City: Cockeysville Neighborhood: Laurelford Year Built: 2008 Fin SqFt: 5484 Lot Desc: Backs To Trees Lot Size: 1.14 Acres Style: Modern Levels: Bedrooms: 4 Bathrooms: /1 Const: Cedar Siding Roofing: Cedar/Shake Basement: Finished Basement: Walkout Level Heat: Heat Pump Fuel: Electric Cool: Central Air Parking: 2-Car Garage Garage Spaces: 2 Exter Feat: Deck Water: Well Description Gorgeous home available for move in immediately! Inground Pool in back of house, Fabulous Master Bedroom, Spacious Rooms."

12 Additional Photos 2 Symphony Cir List Price: $789,000

13 Subject Property Profile for 7 Deep Run Court The following features have been identified to aid in the search for properties that are comparable to yours. This will help in determining proper pricing for your home. City: Hunt Valley Year Built: 1988 Lot Desc: Backs To Trees Style: Colonial Bedrooms: Const: Cedar Siding Basement: Fully Finished Heat: Heat Pump Cool: Central A/C Garage Spaces: 2 Water: Well # Fireplaces: 2 Amenities: Built-In Bookcases Other Rms: Den/Stdy/Lib Neighborhood: Orchard Valley Fin SqFt: 2160 Lot Size: 1.04 Levels: Bathrooms: 2/1 Roofing: Cedar/Shake Basement: Walkout Level Fuel: Electric Parking: Garage Exter Feat: Deck Sewer: Septic Amenities: Auto Gar Dr Opn Amenities: Mba/Sep Shwr Other Rms: Family Room

14 Subject Property Profile for 7 Deep Run Court The following features have been identified to aid in the search for properties that are comparable to yours. This will help in determining proper pricing for your home. City: Hunt Valley Fin SqFt: 2160 Style: Colonial Bathrooms: 2/1 Basement: Fully Finished Fuel: Electric Garage Spaces: 2 Sewer: Septic Amenities: Built-In Bookcases Other Rms: Family Room Neighborhood: Orchard Valley Lot Desc: Backs To Trees Levels: Const: Cedar Siding Basement: Walkout Level Cool: Central A/C Exter Feat: Deck # Fireplaces: 2 Amenities: Mba/Sep Shwr Year Built: 1988 Lot Size: 1.04 Bedrooms: Roofing: Cedar/Shake Heat: Heat Pump Parking: Garage Water: Well Amenities: Auto Gar Dr Opn Other Rms: Den/Stdy/Lib

Comparative Market Analysis 7 Deep Run Court 12 Old Padonia Rd 24 Springhill Farm Ct 12002 Boxer Hill Rd Adjustments Adjustments Adjustments Sold Price $755,000 $755,000 $850,000 $850,000 $790,000

Cockeysville Neighborhood Orchard Valley Laurelford Springhill Farm Sherwood Year Built 1988 2008 200 1995 Fin SqFt 2160 584 4000 5282 Lot Desc Backs To Trees Backs To Trees Back To Woods Backs To

2 Acres 10 Acres Style Colonial Modern Cottage Colonial Levels 2 Bedrooms 4 4 6 Bathrooms 2/1 /1 /1 4/1 Const Cedar Siding Cedar Siding Stone Vinyl Siding Roofing Cedar/Shake Cedar/Shake Shingle

15 Comparative Market Analysis 7 Deep Run Court 12 Old Padonia Rd 24 Springhill Farm Ct Boxer Hill Rd Adjustments Adjustments Adjustments Sold Price $755,000 $755,000 $850,000 $850,000 $790,000 $790,000 Sold$ SQFT $140 $21 $150 List Price $789,000 $899,900 $850,000 List$ SQFT $147 $225 $161 Sold Date 11/21/04 08/12/04 09/0/04 DOM City Hunt Valley Cockeysville Cockeysville Cockeysville Neighborhood Orchard Valley Laurelford Springhill Farm Sherwood Year Built Fin SqFt Lot Desc Backs To Trees Backs To Trees Back To Woods Backs To Trees Lot Size Acres 2.2 Acres 10 Acres Style Colonial Modern Cottage Colonial Levels 2 Bedrooms Bathrooms 2/1 /1 /1 4/1 Const Cedar Siding Cedar Siding Stone Vinyl Siding Roofing Cedar/Shake Cedar/Shake Shingle Shingle-Asphalt Basement Fully Finished Finished Full Full Basement Walkout Level Walkout Level Unfinished Finished Heat Heat Pump Heat Pump Forced Air Electric Fuel Electric Electric Gas Heated Electric Cool Central A/C Central Air Central A/C Ceiling Fan Parking Garage 2-Car Garage Driveway Garage Garage Spaces Exter Feat Deck Deck Garden & Vine T Deck Water Well Well Multi-Tank Conditioner Sewer Septic Septic Septic Septic # Fireplaces Amenities Auto Gar Dr Opn Walk-In Closet Flue For Stove Wet Bar Amenities Built-In Bookcases Wet Bar Greenhouse In-Ground Pool Amenities Mba/Sep Shwr Mb Shower Garage Door Opener Sauna Other Rms Den/Stdy/Lib Common Room Common Room Common Room Other Rms Family Room Game Room Greenhouse Family Room $808,200 $755,000 $850,000 $790,000

16 Comparative Market Analysis Graphed by Status Currently On The Market Under Contract Recently Sold Off The Market

17 Comparative Market Analysis Statistics Graphic Analysis of Currently On The Market Properties Summary Statistics of 7 Properties: Average Price: $861,14 High Price: $899,500 Low Price: $789,000 Median Price: $885,000 Average Year Built: 1992

18 ABSORPTION RATE ANALYSIS To Assist in Accurate Pricing of Your Property 1) INVENTORY The total number of like-kind homes for sale within your price range. 2) ABSORPTION RATE The rate at which like-kind homes will sell within your price range in a given period of time. It can be expressed in unit sales per month. EXAMPLE: Sales Last 6 Months Divided By 6 Mos. = Sales Per Month (In Your Price Range) (Absorption Rate) YOUR MARKET: ) MONTHS OF INVENTORY Determines the length of time required to sell all the existing homes by dividing Current Inventory by Absorption Rate. EXAMPLE: Current Inventory Div. By Sales per Month = Months of Inventory YOUR MARKET: 4) PRICING STRATEGY Homes priced closest to market value within your price range will sell first. Slower (higher) absorption rates require pricing closer to the market. SELLERS MARKET < > BUYERS MARKET Months

19 ACTIVITY VS. TIME ON MARKET The majority of showings occur in the early period of marketing (typically the first 2 or weeks) then diminish after existing buyers have seen your property. PRICE Don t overprice your home during the period of its best activity then lower the price after the buyers are gone! WEEKS ON MARKET

20 We Can Always Come Down (The Bargaining Room Myth) The rationale of pricing your home higher than market value in order to leave bargaining room is an ill-advised pricing tactic. Buyers shop and compare, and recognize when homes are well-priced in the market. $ PRICE Lower Price Overpricing can cause your property to stay on the market longer than you want and sell for LESS than market value when it finally does sell. Price it RIGHT from the beginning! Lower Price MARKET VALUE SOLD

21 PRICING Buyer s Interest vs. Seller s Market Pricing closer to Fair Market Value generates more showings and better offers in a shorter time frame, even in a Seller s Market. The Quality Team in Real Estate Service Since Maplewood, Ste. 1, Wichita Falls, Tx 7608

22 Pricing Strategy General Rules. Let's review some important considerations. There are certain factors that are beyond our control and certain factors that are within our control. Those factors outside of our control are: the location of the property, the finished square feet and types of rooms and the amenities that are in place. Those factors we can control are: the appearance of the property inside and out, how aggressively we market the property and the price, including terms. It is critical for us to accept those factors that are beyond our control and to focus on pricing and preparation. Local Market Observations. Our market is currently steady. Properties are not moving very fast but they are not languishing for months either. Given the current interest rate situation we should continue to experience relatively low mortgage rates and thus the market should remain steady for awhile. Suggested Price Strategy. My analysis of the comparable properties suggests a list price range of $ to $ This range should achieve your primary goal which is a reasonably quick sale.

23 PRICING STRATEGY Proper Pricing is Very Important in Reaching Your Goals:! To sell your property in the shortest amount of time possible! To sell your property with the least amount of inconvenience to you! To net you the greatest amount of money Overpricing Will Create the Following Problems:! Reduces sales associate activity! Reduces advertising response! Loses interested buyers! Eliminates offers! Helps sell other competing properties! Can create appraisal problems! Limits financing possibilities! Extends market time! Eventually means less money to you From the Competitive Market Analysis, we have determined the Range of Values for homes similar to yours to be: Sold Price Price/Sq.Ft. Subject Sq.Ft. Range of Value Low $ /Sq.Ft. x Sq.Ft. = $ Med/Avg $ /Sq.Ft. x Sq.Ft. = $ High $ /Sq.Ft. x Sq.Ft. = $ Recommendations/Adjustments/Comments:

24 Seller s Estimated Proceeds Proposed Selling Price 1st Mortgage Title Insurance Brokerage Fee Home Warranty Policy Termite Inspection Document Preparation Appraisal Fee Recording Fee $799,000 $5,000 $8,000 $9,950 $500 $00 $250 $00 $150 Approximate Net Proceeds $714,550 DISCLAIMER: Items and amounts presented are estimates only.

25 The Purpose of Feedback The reasons we follow up with the Agent who showed your house are: 1. To jog the Agent s memory about the house so that we may be able to get a second showing. 2. To answer any questions or concerns that the Buyer expressed so that the house will be reconsidered.. To get the impression of the Buyers or Agents that might help us to better market your house. Note: Don t expect Agents to give a full critique of the house. If they showed houses, they honestly may not remember it in detail. Also, if an Agent doesn t call us back, it means the Buyers are not interested. When An Agent Says: Interpreting Feedback The Agent Means: The Buyer thought the house was > The Buyer found larger homes too small. for the same price. They liked the house, but bought > They found other houses that another one. were better values. They liked the house, but bought > Buyers will pay 10 15% more a new home. for a new house. They didn t like the carpet. > Seller should replace carpet because of age or color. They thought the yard was too > They found other homes with small, the street too busy larger yards, quieter streets. They didn t like the floor plan. > They didn t like the floor plan. Price Objections are Always Clothed in Different Terms SELLERS GOAL: To Be the Nicest House in the Price Range

26 Understanding The Real Estate Market If our house is not being shown, it means the agents think our price is too high for that neighborhood. Recommendation: A significant price adjustment If our house is being shown, but we are not getting any offers, it means the Buyers are finding nicer homes for the money. Recommendation: A moderate price adjustment If our house is in the running but the Buyers buy something else, or if the Buyers view the house a second time but buy something else, it means that we are close. Recommendation: A minor price adjustment According to the National Association of REALTORS, if our house is priced correctly, we should get one offer for every 10 showings. In a normal market, we should get 1-2 showings per week.

SUBJECT PROPERTY PROFILE FOR

SUBJECT PROPERTY PROFILE FOR 7 DEEP RUN COURT The following features have been identified to aid in the search for properties that are comparable to yours. This will help in determining proper pricing