The Guidelines Around Pricing Your Home

Your Real Estate Today
Saturday, October 7th

Paul discusses how to price your home.


Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Investment advice provided on the following program is on an individual basis lists should not consider today's discussion has a recommendation for any of us. And she carefully evaluate before investing in DC you'll really listening to him. Who's talking 1110 WBZ. There. So unwelcome as this is a variable edged version of the show your realistic today. We're here just very short time today but we're glad to be when you and happy Saturday tea. We hope that you're out and about having a wonderful day. This is not a lot of its pre recorded so just sit back relax we're gonna provide you with some information. Today and I'm gonna talk to you. About a subject that I got a lot of calls after I did this show. About pricing your home. And I really wanna talk to you about. The guidelines. Around it and I think it's important right now in this season. When your getting ready to Lister home which you should because you don't have a lot of competition right now and remember every showing that you have during this time. There's a reason why somebody's look at they're not looking for five so don't think you got to wait till the spring to settle. But. It's important for us to talk about watt. Some of those pricing parameters might be but first. Let's talk about what they are not. All right. In pricing your home. It is not. What you oh or what you need to pay off your home. Certainly that may be some thing to evaluate what your looking at how to price it. But setting that price should not be dependent on. What you oh or what you need to pay it off there are market conditions there. That you need to consider. When doing that. All right next. It's not. What you invested in the property so pricing your home. Is not just. What you invested in it or what you have been it. That is not a how to set the price for the home again if you're in a situation where you have paid it often EU have I'm not paid off I mean. You've not paid it off. But you need a certain number to pay it off and it doesn't work. Wait. Don't sell right now may be needle Lisa. Some options there but also. Just because you spent 30000 dollars in your kitchen Tawny thousand dollars on the force 5000 dollars on paint. 171000. Dollars on your outdoor grill and your set up. Does eighteen you asked bat to the price to come up with a price. He just doesn't work that way again its market driven all right. Here also is what pricing is not as well it is not that tax value. Do not rely on Mecklenburg County. Tell assess the value of your home. Mecklenburg County the great state of Mecklenburg union gassed and York. Although there are some good people there. Do not rely on them. To establish the value. For your home. It is not there. Job. It is not what they do. And they are not active in the marketplace. They are there to assess. TJX. Tax. And that's what they do. We're not gonna point any fingers we just totally right there. Next. You cannot price your home. For what your neighbor sold for. Yes. Your name. If your neighbor got a certain number. Your home may be worth more your home may be worth less I don't know but just because your neighbor got it again. Might be a basis for valuation. But. It is not the sole basis for how you price your home. The next he has. Pricing your home should not be a process. Like you negotiate. For a used car. Let me X one. If I'm going shopping for a car and I go to the dealer. I know that that 2013. Toyota. Priced at 101000. Dollars has room for negotiation. That when I step on to of that for the dance begins with the auto dealer it is a part of the processes. Are part of a dance. About the only play she can't dance is CarMax. Aren't so. Let's put it in CarMax terms the prices the price. Selling your home is not exactly that way. Most of the time when you have a market value your real Turkey and give you statistics that show. It sells for a 100% of market value 105% of market value 95% of market value so that your prepared. For how that. Negotiation process will go but. If you price your home with quote unquote. Lots of room to negotiate. You're never gonna get the chance. So think about pricing it and pricing it correctly right out of the gate I've been told by many appraisers and they won't allow me to quote them. But in some cases in high demand areas there's about a 5%. Leverage points so if your home is a 100000 dollars. You can use you know that there's about 5%. Of play in the air possibly. But don't count on that. Right. The next thing. I don't know I'm just kind of put it out there folks I have. I am. I can't price a home. At a number. Just to make you happy. Do I wanna make you have three yeah and us. Do I want it to be a number that exceeds any expectation that you ever thought. Yes. Do I want it to be. As big fat number. And everybody jumps up and down and hot fives. Yes. But. A number. Is the number I can't tell you the number of times I've sat with people. Here's the number I show the evidence I've worked through the process and give them everything they said was numbered and make me. Happy I want this. And this other agent came over here said while I get I get. That number plus 101000 dollars let me tell you what that is that's called by enlisting. I won't do. My job is to do honorable truthful. Real estate and most agents in that way when the agent tells you number let's say for example you want to try and number okay. You might try that number but they're needs to be a very strategic strategy to reduce the price if it doesn't work within seven days. So. Everything needs to be at the table approach you know I love sitting at people's kitchen table I don't know feel ever heard me say that before. Because we sit there together we throw all the paper out in the middle of the table we have firm frank conversation. In the talks and jump and onion. Your haven't straightforward look each other in the iconic conversation that's how I like to do business and that's the way this business should be done. So do I wanna make it happen yet but. I wanna make. You. Sell your home and get as much as you can. Do it in a timely manner that's ago right. The last how you shouldn't prices. Is. What would go home be worth if certain things did happen. If there was a train station close by that has been built yet that may be built twenty point. Four if they actually do put in the super Wal-Mart three blocks away. Or. If this big development kits or. If that home sells for whatever the price maybe. So. Those things are not ways to pressure home. So in the next segment what I'm gonna do is I'm gonna talk to you about some things to consider in pricing your home. And things to pay attention to in pricing here. And we do love to talk about all of these subjects and and you it may sound a little bit tongue in cheek tea. But let me just tell you pricing a home is an art it has a very strategic way of doing but more importantly. Once you get the price it. You have to do. The behavior you don't stick a sign in the yard which your high school picture orbit yeah actually have to do that work to get its so. So we're gonna talk some more about that. We're gonna go on break here at new stark 1110. WBT stay witness. We'll be right back to show your real state today. Welcome back for the show you real estate today a bridge diversion. We're free recording today I believe there's a football game. Cute thirties so I'm on limited time today got so much to talk about so today segment we're talking about how pressure on. We spent a good amount of time talking about how not. The variables not to use in pricing at let's talk about some of the things you need to consider in doing that this was. At at several people's requests they asked me to redo this so I'm doing and again our. So first of all in and things you need to consider when we're sitting down talking about the price here at home. Is that. Officially it needs to be said. Realtors are not appraisers we did not go to appraisal school we are not going to write up a formal place or we do not have that stamp. And that is not what we do. However. You know it's like anything. To realtors to appraisers. You give them an address you're never gonna come up with exactly the same number I've seen multiple times. You know I had a house so we are working with them in the six month period we did for appraisals on that house. Do you wanna know. That the variables of those appraisers appraisals. Was 30000. Dollars. Now folks. That's big. You talk about 30000 dollars on a home that's right around 300000. That's a big swing. So. Again. Realize when you're talking about it use current data. I pole pictures. The other homes that have sold so we can look at well yours has updated Carrick dobbs this one has updated counter tops. Years hasn't there roof this one has an injury if you actually do as best you can comparisons. And do we make minor adjustments for certain things yes we do but. Without really do an apples to apples comparisons you know this past week. I was sitting with some clients and there the market value of their home was probably. Let's just say a 1101000. Dollars. And one of the homes that sold in the neighborhood very recently. And and the first home we called the subject was arrange. The homeless so very recently was a split level home. And it's said dissimilar square footage same number of bedrooms sold for 72000. Dollars. All right. There's pretty big difference there even though split level typically sells for less money than a ranch in a ranch typically brings more 'cause the cost more construct because of the way that the footprint. Blocked. If you look in the agent remarks. Of these split level house its says. The following things. Please note. If you purely went on square footage or what public information was there you'd. You'd have a different assessment. Because of that one lone wolf. Pay attention. To the deep tales. Of how of these homes sell. Because it makes a big difference not just what's come. But what's go on our web foreclosure should short sales all of those variables have an effect. The other thing that people don't look at. And can't see in the public view is let's say that homes sold for 72000. Dollars. There's also a little column that us realtors concede that says seller contribution. Well. If it says at the top line sold for 72 and they made a seller contribution. Of 6000. Dollars. Well guess what that hole really sold for. Is sold for 66000. Dollars. Not 72000. That plays a big impact in what's going on. Because a lot of times the buyer needs some closing costs money or in lieu of repairs and they're gonna give money. That. Plays an effect on the net value of what that home soulful. Art. Here's the biggest if you don't. Take him any thing else that I said the day not you absolutely blatantly out and heard nothing that I said. This one thing you've got to attack. Our right so stay wet parent. When you are pricing on home Yasser prays yes comparing to the other pictures. There is a aspect. Of the data that you receive that I want you to always always always look at. And that is. Days on market. Days on market will tell you know we do. How the homeless price. Was it priced in the right time. You want a price that's gonna get that home sold. With in the average days on market in that price range let me give you an example. All right. In homes right now. Under. Ice under 200000. Dollars. Average days on market. Are probably nineteen to third. So if you wanna sell. Our home like that. And it's ready to go now there are exceptions folks come on Maggie I'm I'm general rising to a certain extent. Make sure. You price yourself in that right. Segment. Parent homes over a half a million dollars typically sell in an average of 224. Days. Much longer. But you can look at data. And you can tell days on market. Again here's something else to look at. When you compare those days on market what time of year. Did most of the homes sell. And in how many days because. Debt debt and bad bet the lights already gone off for you if hits are home with fabulous schools. That's selling season is march. To July. 3. All right which means the majority of the homes are gonna go under contract 'cause they wanna get since goal for the next year. And good days on market are going to be faster. But. If it has nice schools and it's outside that window. You might see larger days on market so days on market yes yes yes. Time of year yes yes yes plus. OK so make sure when you price the home you pay attention. To those things now. How far back did you go. In order to evaluate those things. Have you think you go back to 2009. News. That you dealt. Depending on the number of homes that have sold I go back and try to go back no farther. First I go back six months I wanna see what's happening now. I go back a year and I look in if I can't get enough data I'm not go any farther back than 720. Days. Dot dot two years that's it not going back any part. Because the data is completely irrelevant we are facing today a different market than we faced back Yonder. It is very very different so try to stay within that window. And you will you will do that so again. Days on market days on market. Stick that in your brain keep it there so now if you need to get up and go to the restroom or you need to go get another beer or whatever you need to do you go ahead and did that. And at least told you that one thing so you get out your car. Our. The next saying yes. Who was actually. Selling. The property. Now you're gonna go what he's just saying. I'm gonna say. It does matter who you realtors. And there are certain companies. They do a good job. And other companies. That do the proverbial what I said earlier. Sign in the yard. Wait. You cannot sell our home and expected to so quickly if you don't do any kind of marketing at all. I don't care what price points at its and this week this past weekend for example we had a home around Matthews. We prepared. We boosted. We marketed. We had fifteen couples that came through for us Saturday open house. So 7000 over asking price because we did the work. We did the work. You have to do the work if you're with a discount. Realtor if you're not with somebody that understands. Marketing. And how to market the home because it's not just put it on a flyer and sticking it out there. Each and every home has a unique. Buyer profile. You have to think about who the buyer is and yet have to talk to the bad buyer. Not only with your marketing but in the description. In the description of how you describe that home. If it is in a senior community. Here are not gonna talk about. Some of the things you would talk about when the home and homes are more tailored to a family. It is not the same as a matter of fact. If grandma's live and in a family type neighborhood. Grandma's stuffs gotta go 'cause when meg go through the door the pictures. And the actual experience has to be tuned. To the audience for which the largest segment had that market is after. So. No doors are always in the kids' houses. You know they wanna see other kids I got a call today. How many kids are in the neighborhood or their other children are there other things you need to prepare your marketing. Without sag Manning segregating. Or discriminating. Ways. To express. Things that are important to that site and I'll move on. Price per square foot. It's only relative again when you. Compare it to like kind. Don't wander. You'll lose out. All right. And then how you price it. I think about how people behave. If if people think in fifty and 100000 dollar increments. Why are you pricing your home at one vote to. You're gonna miss everybody searching up to a 100000 dollars. Folks. Be Smart. Think about people behave. How they behave think about who they are. And price your home with Smart conscious strong realtors and a Jamison realty we wanted to talk to use. At 84698463663. We hope you enjoy your Saturday we hope you enjoy the football game I have so many more things to share but we'll see you next time. On the show you real estate today so I'm blessed and haven't less.