A 2-part series by Lawrance Morrissey
Part I: Properly Pricing Your Home
In the real estate world, there are two major rules to selling any property, in any condition, price range or location: 1) Properly price the home. 2) Expose it to buyers. While this seems easy enough, almost everyone gets one, if not both rules wrong.
Pricing your home is no easy task. There are 3 things you can do to figure out the price. 1) Do some homework and figure out what your neighbors have sold for. 2) Have real estate companies pull “comps,” also known as “CMA’s,” or “Comparative Market Analysis” reports for you. Agents can pull up data on recently sold homes that are comparable to your home in an effort to gauge what your home might be worth. 3) You can invest in an independent certified appraisal.
The big problem with CMA’s is the hidden motivation that comes with this “free” service. Lets say you were committed to bringing out 3 competing agencies to your home for evaluation/CMA reasons. Agent A says your home is worth $145K. Agent B says your home is worth $150K, and agent C claims they can get $155K for your home. Who would you most likely go with? 9 times out of 10, the answer is agent C. We all want the most we can get for our home. Unfortunately, agents know how this game is played. So the great majority of agents offer inflated price ranges for potential listings. After all, the agents who get the most listings’ make the most money. Using this logic, it’s very easy to conclude that the great majority of homes are overpriced when they enter the marketplace. We as consumers instinctively know this. That’s why when we enter a home that we like, we have the preconceived notion of offering a price thousands below the asking price. We are conditioned to do it because we know a game is being played.
That pretty much makes “doing your own homework” out of the question. Often, a homeowner will pull a neighbor’s flyer for comparison reasons. Then the reasoning soon follows that “my home is worth more because I’ve done this that and the other.” Soon, your price is based on your own justifications (and emotional attachment) in addition to your neighbors’ already-inflated price! I’ve seen many people come in with homes priced $10-$30K above fair market value because of what happened above. Guess how many of those homes sell that have fallen into that trap?
Getting a certified independent appraisal is the only true way to know what your home is really worth. Remember, the appraisal company doesn’t have any hidden motivations. They don’t care what you use the appraisal for, and they get nothing if you sell or stay. Imagine having a certified appraisal sitting out when people walk through the home. How often have you walked through a home to find that someone went out of his or her way to prove what the home was worth? Wouldn’t you feel better about making an offer on a home if a company with no hidden motivations professionally determined its price? The moral of this story is that it’s a whole lot easier to sell a home at fair market value, backed by an appraisal, than one that’s several thousand dollars overpriced.
Part II: “Exposing the home to buyers” will be discussed in the next issue.
This beautiful two story home is ready to move in with lots of love, caring, and remodeling done in the last 3 years. Built by a Kitchen & Bath Contractor in 1991 this 4 bedroom, 3.5 bathroom one of a kind home is being reluctantly offered for sale by the current owners in order to facilitate a move out of state. Living room completely redone this year with an energy efficient Gas Log Fireplace & premium carpet. Master Bedroom complete makeover with premium carpet and all new Master Bathroom with Jacuzzi, premium carpet, luxurious shower with Corian surround installed by Richard’s Bath & Kitchen. Brand new hardwood floor in Formal Dining room. Refinished hardwood floors in Kitchen. Brand new Microprocessor controlled high efficiency Water softener & Reverse Osmosis Water Purifier installed by Culligan (2007). Built in book shelves in Bonus room. New professionally installed Closet Organizers in Master walk-in closets. Concrete driveway Concrete Basketball court. Invisible Fence for dog in front yard. New long-life, lightweight Metal roof ‘DECRA SHAKE’ with the look, ageless beauty & richness of cedar shake. Andersen windows, 6 panel solid-core oak doors throughout, crown moulding details. Gross Living area : 3,843 sq. ft.
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Wow, what a unique home this is! Brand new construction, never lived in. Stunning exterior English Tudor style home complete with turret that doubles as a covered front porch. Warm up with the rustic fireplace in the great room with soaring vaulted ceiling. The kitchen is loaded with oak cabinets, solid surface countertops, island with electric cooktop/eating bar, pantry, ceramic tile floor. Two master suites – one on the main level, and they both have Jacuzzi tubs! Bedroom three shares a Jack & Jill bath with the huge bonus room. Massive storage space with the 2.5+1.5 car garages, full basement and oversized closets throughout.
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* One owner ranch style home * Beautiful upgraded 4″ 1/2″ trim and 5″ floor molding * Located in the popular Spyglass Falls subdivision * Custom wood blinds stay with the house * Oversized living room w/gas fireplace open to Kitchen Bar * 10′ ceilings throughout * ArchiDeck built custom deck * Open floor plan * Custom entryway with new tile * New tile in guest bath and laundry room * Full finished basement with half bath , custom lighting , large Open entertainment area with office and in-home gym * Meticulously maintained * Contemporary Pottery Barn detail * Incredibly clean * Perfect for children of all ages, professional and empty-nesters * Fresh paint throughout * Brushed nickel hardware * Extensive landscaping * New roof * Highly motivated seller * Call anytime for an appointment. Flexible visitation hours.
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Fantastic condo with vaulted ceilings, brick fire-place, and walk-in master closet. Virtually everything is new including fresh paint, new carpet and vinyl floor in kitchen and bath, refrigerator, and 2 year-old Furnace and A/C with air filtration and humidifier. All window treatments including new blinds stay. Immediate occupancy. Homeowner’s dues of $180 a month include water, sewer, trash, lawn care, exterior insurance and maintenance, snow removal, and community swimming pool.
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Beautiful condo overlooking pond in quiet Fishers community. Great location close to shopping, banks, doctors office, restaurants, post office, interstate and Indianapolis. This 2-bedroom with loft has lots of closet space, wood-burning fireplace with patio. New carpet in 2006, and new furnace/AC unit in 2003. Association dues of $185/month covers the exterior building, all ground maintenance, and lets you enjoy tennis, swimming and use of the clubhouse. 2007 taxes $1,002 annually. Let’s make a deal! One-year home warranty included!
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You’ll love the views from this home. Mature trees and a 20′ x 40′ water garden in a natural setting attracts wildlife. Great location within walking distance of elementary, junior high and high schools. Well-maintained neighborhood. Family room and master bedroom have vaulted ceilings. Master suite has separate tub & shower, dual sinks and walk-in closet. Upgraded laminate flooring in kitchen and breakfast nook. Carpet allowance included.
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We know we’re a little late arriving at the blog party, but we’ll try and make up for lost time! Please come back often as we suspect the section of our site will change very frequently!
Articles | lawrance | 
June 21, 2008 2:00 pm | 
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