fill
fill
fill
Linda Borgmann GRI

linda@homesbyriley.com
fill
fill
fill
fill
Linda Borgmann GRI
fill

linda@
homesbyriley.com
fill
fill
fill
fill
fill
fill
fill
fill
fill
fill
fill
Buyers Info
fill
Sellers Info
fill
Owning Your Home
fill
Investing Advice
fill
Mortgage Info
fill
Neighborhood Info
fill
School Info
fill
Mortgage Calculator
fill
fill
fill
Main Components That Make Up the Sale of Your Home

Location
To coin the favorite phrase of appraiser’s “Location, Location, Location!!” the pricing of your property must reflect its “location”. Location, in this case should be defined as the immediate neighborhood encompassing the subject property: the area which shares the similar proximity and exposure to traffic, commercial interaction, school zones, etc.  In many cases, a property can be very close to the subject property and be similar in design, age, square footage, lot size, bedroom/bathroom, count, etc.; however, if it is located on a busy street, its value could be 25-35% less than a similar property located just a short distance away on a quiet street or road.  Values can be substantially different for two similar properties situated just hundreds of feet apart, but being served by two different school zones.  Many factors go into determining similar “locations” and it is one of the most important factors in setting a realistic list price. 

Condition
It is a recurring fact that a well-maintained and nicely staged home will sell more quickly than one that has not been very well maintained and full of clutter. The presentation of property is crucial in a seller’s quest to obtain the highest value.  The pricing of your property must reflect its condition.   A potential buyer’s initial impression is the first and best opportunity to have your house sell.  Regardless of what you may hear, or think, folks buy homes largely based on emotion!  Logic, common sense, dollars & cents, formulas for taxes, and heating/cooling/utility costs will all become contributing factors in a final decision.  But none of these will be considered unless the buyer has made that emotional connection with your property! Please feel free to download my list of Tips For Selling Your Home.

The Market  
Current mortgage interest rates and underwriting criteria will surely influence the market.  Lower interest rates usually generate larger pools of buyers. With low rates, buyers have more purchasing power. Inventory of homes that are listed “for sale” also affect pricing on your home.   Other like-kind properties on the market will be viewed by buyers who will also look at your property.  Your property does not need to be priced as the least expensive, but it should be priced to provide one of the best “values” in your price range.  The state of the economy also plays into the formula. Unfortunately, opinions of the state of the economy are subjective, and mass media attention and directives help create a perception.  In real estate, many times “perception is reality!”  The pricing of your property must reflect the current status of the market. 

Price
Setting the right price is the number one factor in the sale of your home. A property is only worth what a buyer is willing to pay. Price must be in direct relationship to the other 3 components and it is the most important of all. 

When all of the above components are in line, there is a sale.  If just one of them is out of line, it will take a longer time to sell. 

In Determining The Value of Your Home:  Realistic pricing will achieve maximum price in a reasonable time.  Your cost to profit desire is irrelevant; the market determines the price.  The cost of improvements is almost always more than the added value. The house that is priced right from the beginning achieves the highest proceeds. 

Location and characteristics of the property are the key elements in determining value.  Therefore, the basis for valuation is similar properties in your area.  The market analysis takes into account the amount received from recent sales of comparable properties and the quantity and quality of the comparable properties currently on the market.  The desired end result, of course, is to find a price that will attract a willing and able buyer in a reasonable time.