Every home seller wants to get the best possible price for their property in the least amount of time. But setting a reasonable and realistic price is essential. Get it wrong and you risk your home sitting on the market or letting it go for less than it's worth.
Here are six common errors I see sometimes in the Roanoke Valley that you'll want to avoid when determining a list price for your home:
Starting too high
It might be tempting to aim for a high price when you first list, assuming you can always lower it later if there isn't a lot of interest. Unfortunately, this is often counterproductive.
Both house-hunters and Realtors actively monitor new properties listed in their local areas, and if they see your home suffer a significant discount after a few months, they're likely to assume there's a problem that's deterring buyers.
An unrealistically high starting price can have dampening effects on buyer interest for months to come.
Leaving no room to negotiate
At the opposite extreme, don't price your home so low you've no room left to negotiate. The majority of buyers will expect at least a little bargaining during the sale process, and you need to account for this.
If a potential buyer's initial attempts to bargain are met with a blanket refusal, they're much more likely to walk away.
Not taking your Realtor's advice
Whatever selling price you have in mind, always take the advice of your Realtor seriously. Even if they suggest a figure that seems too low, don't dismiss it. They're applying their knowledge and experience, and it pays to listen.
Checking the wrong figures
It's common practice to look at other homes for sale in your area and price your home accordingly. This tactic can be a serious mistake. By definition, homes which are still up for sale haven't yet found a buyer, so you've no clear idea if they're priced realistically or not.
Instead, base your research around homes similar to yours that have actually closed in the last year or two.
Overvaluing home improvements
While most home improvements make a home more attractive to buyers, they sometimes don't increase the sale price by enough to recoup their cost. If you try adding the full expense of your recent kitchen remodel to the listing price, you could run the risk of pricing your property out of its market.
Instead, ask your Realtor for their expert opinion on what your improvements are actually worth, and don't increase the price by more than that.
Effective pricing is an essential part of selling your home. Make sure you give it the careful consideration it deserves, even if it means accepting little less than you'd want in a perfect world. To discuss a pricing strategy for your Roanoke Valley home, contact me anytime at email@example.com or 540-793-0442.
To say that the internet has changed the way buyers look for homes is an understatement. Visit nearly any Realtor's website in the Roanoke Valley -- or any market -- and you'll find not only their own listings, but the entire market's inventory of listings just waiting to be searched.
So it was no surprise when the National Association of Realtors reported in its 2016 Home Buyers and Sellers Generational Trends study that searching online for homes increased among all age groups in 2015. In fact, for every age group except homebuyers aged 70-90, looking at online listings is the first step they took in the homebuying process. And 65 percent of all buyers walked through at least one home as a result of searching online.
So what does this tell buyers and sellers? For buyers, the best sources of information about homes listed in your area are your Realtor and his or her website. For sellers, a high-quality online listing and an energetic agent are a winning combination that covers the vast majority of potential buyers.
Check out other highlights of the report:
I work with a lot of homes that have been rehabbed before going on the market, so I'm always interested in home improvements and the effect they have on a home's value.
The National Association of REALTORS put out a Remodeling Impact Report. The report looks at the typical cost of remodeling projects as estimated by members of the National Association of the Remodeling Industry. It also reports what Realtors are seeing in the market regarding home improvements. I did a couple of posts on it last year, and I wanted to share with you the infographic containing the headline numbers.
I agree with my colleagues on the big interior takeaways: Kitchens and bathrooms are the place to put your money when it comes to adding value at resale. And remember: Yes, the cost of upgrading is a key piece to consider, but so is the fact that modern kitchens and bathrooms are what buyers want. At every tier of the market, a kitchen or bathroom update can make a home stand out among otherwise comparable properties.
In Roanoke, especially the city, the other big winners inside the home are HVAC systems and wood floors.
In terms of the exterior repairs, in the Roanoke area, yes: roofing and vinyl windows are a big deal across the board, both in terms of value and in terms of buyer appeal.
As always, the real answer depends on your home and how a particular project fits into an assessment of its overall value. So if you've been thinking of selling, give me a call and let's talk about upgrades you've made or the ones that would be most profitable to consider. With spring around the corner, this is the time to get those repairs on the calendar.