| Sellers Tips How much is your Home Worth? What do you think your home is worth? How did you come up with that figure? From a sale down the street a year ago? From what you paid for it and then adding in what improvements you did? Your home is only worth what a buyer would pay for it. Let's think of it a different way. Think of it as a buyer...If your home was John Smith's house and you were a buyer. John is asking $300,000 for the house. John paid $200,000 and put in a $80,000 pool and $20,000 in landscaping. John's back yard is nice but the bathrooms need updating, and the basement is not finished. John figures he can get $300,000 because the neighbor down the street sold his house a year ago for $300,000 and he did not have a nice of back yard. By the way the neighbor's house had a new kitchen and new bathrooms, and a finished basement when he sold it. Well you were out looking and you have seen 2 houses similar to John Smiths house, but they were listed for $270,000 and $275,000. One had a beautiful finished basement and 400 square ft more, and a nice built in pool. The other one had just redone the kitchen in beautiful cherry cabinets, a neutral floor, stainless steel appliances that come with the home, a beautiful bathroom with a spa tub, and a separate glass shower, and a finished basement and nice landscaping. Which one would you chose? CMA - Comparative Market Analysis Well the real estate market may come down or gone up in price since your neighbor sold a year ago. But you did not realize that. A comparative market analysis will tell you that. A comparative market analysis is a report where your real estate agent looks at homes that are similar to your in size, amenities, location, and have sold in the last six months. A CMA usually uses 3-6 comparable homes to determine your value. Some homes are harder to compare because they may be unique in location, size, or amenities. But you have to remember "what will a buyer pay for the 1.5 acre bigger lot" If the buyer can by a similar house for $100,000 less would they? Many would. You would have to get somebody that absolutely loves that wooded lot. Not to say it won't happen, put you have to price your home right. That is where a CMA comes in. You can set your home price at any price you want, whether it will sell is another story. Can you wait six months or a year until the prices rise to that point? Do you have to sell by a certain time? When a house sits on the market for a long period of time, buyers realize something is wrong with the house (whether there is or not) You are more prone to get low ball offers. When you home comes on the market is when there is more market activity, more interest. The longer it sits, the less interest, and the lower the final sales price. (Sometimes sellers even reject an offer, then have to accept less later on) Just because they thought their home was worth more. Even when you lower the price it will not be the same as when it first came on the market. Price it right in the beginning. Bottom line is ask for a comparative market analysis (CMA) and look at it carefully. If the homes are like yours, have the similar square footage, bedrooms, amenities then you should look hard at the prices they sold for. Your home most likely will sell in the same price range. You won't be rejecting offers that are a good sales price. If you are thinking of selling your Michigan home, whether it is a Wayne county home, Oakland County Home, or a Livingston County home call me for a CMA (313)-310-9855. Or email me at info@russravary.com When you put your Michigan home for sale I will help you price it right, (I'll give you the CMA, go over it with you, give you the range I think it will sell in, and let you decide what to price your home for sale) Russ Ravary's Detroit real estate, buyers tips, sellers tips, search for Michigan homes for free |