How to price your home to sell is a big deal and there are a lot of factors to consider. Sure, you’d like to get as much money as possible, but if you overprice it, you risk seeing our property sit on the market with no offers. On the other hand, if you price it too low, you might end up with low offers that don’t meet your needs. Here are some tips to find the sweet spot.
The importance of pricing right
The period of best opportunity for selling a home at a good price is the first 2 to 4 weeks after it is put on the market.
If your house is priced right from the first, you are in the best position to attract the maximum number of potential buyers able to pay the price your home is worth.
If your house is priced too high, buyers are apt to be few and far between, with little chance of any offers to pay your unrealistic price. You may lower your price later, but by then you will have missed many of the most interested buyers… and time.
If your house is underpriced, you may be swamped by non-serious buyers and too low offers that don’t meet your needs.
Hire a PSA agent
One of the biggest reasons buyers and sellers should work with a real estate professional is their local knowledge and it is especially true with a Pricing Strategy Advisor agent (PSA). This way, you know you are working with a real estate agent that knows how to more exactly price homes. They know how to value your property more accurately — whatever the condition.
As we move towards a more balanced market, pricing a home accurately is going to be critical for both sellers and real estate agents. A PSA certified agent is useful by making the closing process better and reducing your risk of a transaction falling through. Because, as we know, deals can fall apart because of an appraisal.
Moreover, online valuation tools like Zillow are only a starting point for pricing your home to sell. They won’t give you all the information you need in pricing your home, and they use limited data.
That is why a Pricing Strategy Advisor agent is the best choice: he/she will be able to lead you to an ideal valuation of your home that will help it sell in the appropriate time while maximizing both profits and time on market.
Tips to how to price your home to sell
Study your comps
Comparables are homes similar in size, amenities, features, structure, and age to your own that recently sold in your area/neighborhood. Real estate professionals and appraisers use comps as a reference point for the subject home and then make dollar adjustments. A CMA, by analyzing a group of 5 or 6 comps, provides clarity around how your home equates to the competition in the context of other relevant market trends.
Don’t overvalue your renovations
Even you have spent a lot of dollars in this new kitchen countertop, the buyer may not like it and want to change everything. While some upgrades may increase our home’s value, it’s unlikely you’ll get back the full dollar amount that you put in.
Think like a buyer
What are the things that you value in a home? Is it a large yard, an updated kitchen or a view? These are likely the same things that your buyer values as well. The property facing the street is going to be a tougher sell than the waterfront one. Also, talk to your agent about current buyer trends.
If no one ask for seeing your home or if you receive feedback that you are priced too aggressively, don’t hesitate to adjust your price. If a house is on the market for too long, interest is lost quickly. Even if the price is lowered after, the initial rush of buyers is over.
A short sale in real estate allows a struggling homeowner to submit a proposal to their lender to sell their home for less than the remaining balance of the mortgage. During the Great Recession of 2008, short sales became popular as many homeowners went underwater in their homes.
What is a short sale in real estate?
A short sale occurs when a homeowner in financial trouble sells their home for less than they owe on the mortgage. Instead of waiting for the bank to foreclose on the home, the homeowner initiates the short sale process by submitting an application to the lender.
Short sales are a safer alternative to foreclosures for both sellers and their lenders. That is why you often can find them priced just below market value.
The lender will get all the proceeds of the sale, and then have 2 options: either forgives the difference or gets a deficiency judgment, which requires the original borrower to pay what’s left over.
When a homeowner is eligible to ask for a short sale?
For a bank to agree to a short sale, the homeowner must establish:
- They face a financial hardship that prevents them from meeting their loan obligations, AND
- They don’t have enough income and assets to pay off the loan. It can be cash, other real estate, available credit, investments, and virtually any other thing of value the homeowner can use to pay the loan.
- The property is worth less than the amount of the loan. The seller or a specialized real estate agent (SFR®) has to run an accurate Comparative Market Analysis or a Broker Price Opinion.
Advantages and differences with a foreclosure
- The short sale in real estate is a much quicker process. A foreclosure is a legal action taken by a lender to seize a seller’s property after they fall too far behind on their monthly payments.
- Fee savings: Normally, the seller bears the burden of closing costs and real estate agent commissions. In a short sale, however, the lender will pay those fees and commissions.
- Both processes can negatively impact a seller’s credit score (a short sale could knock as many as 160 points off). In a foreclosure though, you can have a far more damaging impact on a seller’s FICO®.
- Short sale is a private process (lender/seller) as a foreclosure involves the Court and is public.
Get prepared for the short sale
If you are a homeowner facing a foreclosure, it is important that you work with a knowledgeable agent who will protect your best interests. A Short Sale and Foreclosure Resource Certified Agent (SFR®) are better qualified to handle these situations b. They are also experienced to deal et negotiate with lenders and banks.
Moving to a new state (Florida) or a new country (USA) can be a lot of work and some stress if you don’t get prepared. With relocation, timing is everything. Here are some good tips for a well prepared and hassle-free relocation.
The time for moving
If possible, postpone your relocation until summer or winter time. If you have children, this will help in their transition because the moving will fall at the ends/beginnings of new school semesters rather than the middles. It will give you more real estate opportunities as more properties are on the market at those times of the year.
Choose the best school for your kids
If you have children, anticipating the question of their schooling is wise advice for a successful expatriation. The choice of schooling must be prepared well before moving abroad because it is not always possible to obtain a place in the establishment of one’s choice. Greatschools gives you ratings and comparison of the local schools of your new area.
Choose a trusted Realtor
Secure a licensed Florida Realtor that you trust is one of the tips for a hassle-free relocation. He will do the legwork of finding homes that meet your requirements have them put together a schedule of open houses within a small timeframe. Living in Florida is much different than the rest of the country. Understanding home features relating to hurricane protection, energy efficiency and the Florida climate are important to be informed about prior to making a choice, whether it is to buy or to rent.
Learn how to get around
Have a look at typical commute, public transportations options, main highways and traffic to get to know your new neighborhood and calculate the time to go to work. Check on Walkscore for biking and walking options.
Check if your employer provides with relocation assistance
If you are moving for professional reasons, check with your company. Many of them offer reimbursement on moving company costs, storage costs temporary housing, pre-move visits, etc…
Secure temporary housing
One of the fundamental steps of a successful expatriation is to find accommodation before arriving in a new state to have a fixed address.This may initially be a temporary residence. It is indeed important to arrive on site with an address to communicate.
Choose the moving company
Knowing early in the process how much money you’ll need to budget to cover moving costs is important. Are their prices competitive? On another hand, Be wary of extremely low-price quotes. Beyond the star ratings for a moving company, have a look at a handful of the written customer reviews. Read both good and bad reviews for each company. Check the BBB website for how complaints have been resolved with the company. Finally, choose a company that knows the place you want to move in. A company with local knowledge will provide an accurate price quote and understand what it takes to move about in crowded areas like Miami for ex.