Susan McPherson's Blog
46 Whitney Street, Sherborn, MA 01770
When homeowners start thinking about selling, the first thing they want to know is, “How much can I sell my house for?” Your real estate agent's task is determining the fair market value with a range of prices from low to high. The spread between the two values typical is not large and only leaves a little wiggle room for the seller to negotiate.
Determining the Value
The challenge is that there is no one value for a home on the resale market. Several values go into determining the number. These can include the assessed value (what the local government taxes it on), the appraised value (what a certified and licensed appraiser determines it's worth), the market value (this can go up or down depending on supply and demand) and what the owner needs from it in order to move to the next place. Even among appraisers, the same house might have several different values depending on what that appraiser noted; although, they’re usually fairly close.
The Homeowner’s Price
When a homeowner has a price in mind that they’ll sell for, it may come from several factors:
- How much they owe on the first mortgage
- Whether or not it has a second mortgage or HELOC (home equity line of credit)
- How much they originally paid in the down payment and closing
- What they’ve spent in renovations and upgrades
How Your Agent Determines a Price
A professional real estate agent may give you an estimate of the market value of your home within a range. These numbers come from comparable residences in similar condition, homes that sold recently and the prices of homes on the agent’s MLS. Additionally, if the agent knows that a bidding war might happen, they’ll factor that into the suggested price too.
How Overpricing Could Hinder a Sale
There are several reasons that overpricing your home might hinder a sale. Here are the main ones:
- Your price puts your listing outside the search parameters of potential buyers. Even if you’re willing to negotiate and come down a ways, a buyer won’t know to ask because your home is not on their radar.
- If your home does come up in a search, it will be because the buyer is looking for homes in that price range. But if yours fails to match similar homes in their price point, yours will drop to be the last one they look at.
- An overpriced home can spend longer sitting on the market, languishing there as the MLS adds numbers to the “days on the market” category. Often, buyers assume a home sits unsold on the market because there is something wrong with the property or the seller is difficult to work with.
If you need to sell your home quickly, and for top dollar, trust your real estate professional to guide you in setting the price.
11 Farm Road, Sherborn, MA 01770
24 Magnolia Road, Natick, MA 01760
As a home seller, you'll likely want to do whatever you can to promote your house to the right groups of homebuyers. Thus, hosting an open house is a must, particularly for a seller who wants to enjoy a fast, profitable home selling experience.
Ultimately, there are many reasons to conduct an open house, and these include:
1. You can stir up interest in your house.
An open house enables you to provide homebuyers with an up-close look at your residence. It allows these buyers to look beyond a home listing, and as such, may lead to many potential offers on your home.
Of course, an open house empowers you to show off the true size and beauty of your home as well. If you allocate the necessary time and resources to clean your home prior to an open house, you may increase the likelihood of securing offers at the event's conclusion.
2. You can respond to homebuyers' questions.
Although a home listing may include details about your house's age and condition, it fails to provide homebuyers with a "feel" of what it's like to walk around inside and outside your residence. Fortunately, an open house allows buyers to get a first-hand look at your residence and determine whether your house matches or exceeds their expectations.
Furthermore, an open house provides homebuyers with the opportunity to ask questions about your house. And if you provide buyers with the information they request, you can make it easy for them to decide whether to submit an offer on your home.
3. You can analyze homebuyers' interest in your residence.
Believe it or not, an open house can help you gauge the effectiveness of your marketing efforts.
For instance, an open house that features dozens of potential buyers likely can be considered a resounding success. On the other hand, if no buyers attend your open house, you may need to reevaluate your home's initial asking price and other home selling factors.
When it comes to hosting an open house, there is a lot to consider. Luckily, you can work with a real estate agent to streamline the process of putting together a successful open house.
A real estate agent is a home selling guide who can offer expert tips and insights at each stage of the home selling journey. He or she will learn about your residence and help you map out a successful home selling plan. Perhaps best of all, a real estate agent will set up open houses, help you assess offers on your residence and ensure you can make the best-possible decisions throughout the home selling process.
If you're worried about hosting an open house, there is no need to stress. Hire a real estate agent today, and you'll be able to receive comprehensive home selling support. In fact, with a real estate agent at your disposal, you can seamlessly navigate the home selling cycle.