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Other improvements include upgraded
landscaping, more trees, shrubbery
and flowers,
a sprinkler system, fence and a
unique mailbox up front. Now that
you’ve itemized all of your
improvements, you’re thinking, “How
much is a new home like mine selling
for now on the
current market? Well, I’ll take what
I paid and add in all of the above
improvements, include appreciation
for each year and that’s what I’ll
ask for my price.”
Unfortunately, pricing your property
in this manner may give it an
inflated value. Your property
that you’re so proud of and which is
worth so much to you, may just sit
with a “For Sale” sign for
a long period of time, with a lot of
lookers but no buyers. Then, by the
time seven or eight months
go by, you realize that your price
is too high and drop it accordingly.
But now the buyers that may
have been interested have bought
elsewhere, the agents stop bringing
prospects, it has been
on the market so long it has lost
its appeal, there must be something
wrong with it for it not to
have sold by now. You then get to
the point where you’re going to have
to price it for less than
it should sell for just to move it
and get on with your life at your
new location.
This can all be eliminated by
logical thinking as opposed to
emotional thinking. You’ve put
blood, sweat and tears into your
property. You’ve treated it with TLC
(tender loving care) and it’s
been great for you and your family.
Logical thoughts include:
1) The benefits and pleasures
your family has already derived
from these improvements for
which you will not recover full
value.
2) Check out the properties
presently on the market in your
area that you’re going to
compete with for sale, and their
price.
3) Check the price of properties
comparable to yours that sold
within the last six months and
determine how long they were on
the market.
4) Remember, we may not have
been enjoying the appreciation
rate you expected over the
entire period that you’ve owned
the property.
This logical, statistical approach
is used by appraisers and agents
when arriving at a fair
market value price for your home.
Your United Real Estate agent should
prepare the Competitive Market
Analysis (CMA) using this logical
approach. In doing so, you’ll
receive a professional
estimate of value to help price your
property in a sale range that will
best meet your
overall objectives.
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