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Home Pricing Myths That Can Hurt Your Sale

Wednesday, September 16, 2020
by The Hat Team


When you are putting your home on the market to sell, your top priority may be money. As in, how much money can you get for your house? And it should be. Owning a home is likely the largest financial investment you will ever make and it is only natural that you want to get the most profit possible when you sell.  Setting the right asking price can mean the difference between selling quickly or having your home languish on the market for months. The following myths can be harmful when trying to decide on the best price to ask for your house:

  1. YOU’LL GET A BETTER OFFER IF YOU WAIT -  Receiving an offer right away when you list your house can give you a false sense of confidence that it is a hot commodity. You may think that if this buyer was willing to make an offer so quickly, then surely many other people will be interested in your property as well.  But the truth is, you might not get another offer…at all, let alone for more money.  With no other offers guaranteed, it may be in your best interest to accept the first offer if it is a fair one. Do You Accept the First Offer on Your Home, Or Wait and See?
     
  2. YOU SHOULD LEAVE ROOM TO NEGOTIATE WHEN PRICING YOUR HOME You want top dollar for your home. Of course you do! But overpricing it, thinking that will leave room for you to accept a lower offer, may backfire on you. Buyers might see the high price and not even bother looking at the property. And if you keep dropping the price, buyers might wonder what is wrong with the place.  Price it fairly to begin with and you are more likely to achieve a successful, profitable sale.
     
  3. YOUR HOME IS WORTH MORE THAN YOUR REALTOR SAYS IT IS -  An experienced, professional Realtor will be able to tell you how much your home is worth based on the current market. You should trust your Realtor. While online estimates might tell you that your home is worth more (yay!) or less (boo!) than your Realtor states, they are likely not accurate. Trust your Realtor over the internet. It is as simple as that.
     
  4. YOU CAN GET BUYERS TO PAY FOR HOME IMPROVEMENTS YOU MADE IN ORDER TO SELL -  While some home improvements have a better return on investment (ROI) than others, you are not likely to get back all that you spend getting your house ready for the market. It is wise to educate yourself about which home improvements will help you sell, which will get you a better ROI than others, and which might not be worth bothering. The Best (and Worst) Projects for Your Home's Resale Value
     
  5. REDUCING THE ASKING PRICE IS A SIGN OF WEAKNESS -  Nobody wants to drop the asking price of a home. But it is important to remember that time is money. And if time is passing and nobody is showing any interest in your home, you are still stuck paying the mortgage, taxes and insurance. This will be especially stressful if you have already purchased a new home. Lowering your price a little may be all it takes to generate interest and who knows? You might end up getting your original asking price anyway!

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

Photo Credit: orthodonticslimited.com

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What You Need to Know About Home Appraisals

Wednesday, March 4, 2020
by The Hat Team


Whether you are buying, selling, or refinancing a home and a mortgage is involved, a home appraisal is going to be an important aspect of the process.  Therefore, it’s crucial that you understand how the appraisal process works and how an appraiser determines a home’s value.

A home appraisal is an unbiased, professional opinion of a home’s value.  Conducted by a licensed home appraiser with the knowledge and experience to determine the fair current value of the home, it takes place in almost every home purchase/sale transaction and is commonly used in refinance situations as well. Within a purchase/sale transaction, it is used to establish if the home’s contract price is appropriate, based on the home’s location, condition, and features.  For a refinance, the appraisal makes sure that the lender isn’t giving the borrower more money than the home is worth.  Because the home serves as collateral for the loan, lenders want to make sure that the homeowner is not over-borrowing. With a purchase/sale transaction, the home appraisal is typically paid for by the buyer and the fee is included in the closing costs.

The reason the home appraisal is so important is because it lets the lender know that they are lending the appropriate amount of money for the value of the home.  Sometimes the appraisal will come in for a lower amount than the agreed upon price and when that happens, the lender might deny a loan for that amount. If the appraisal comes in at or above the contract price, the transaction can proceed.  However, chances are the seller doesn’t want the deal to fall through, so if the appraisal comes in low, the buyer may be able to use it to negotiate a lower selling price.  Knowing that the bank won’t lend any buyer more than what the home is worth, the seller may be willing to lower their selling price so that they can proceed with the sale.  A low appraisal can also derail a homeowner’s attempt at refinancing their home. The home needs to appraise at or above the amount the homeowner wants to refinance.  One exception is if you have an FHA mortgage.  With an FHA mortgage, you can refinance without an appraisal through the Streamline Your FHA Mortgage

The appraiser will look at many things to determine the home’s fair current value. The property’s value will be influenced by recent sale prices of similar properties and by current market trends.  The home’s amenities, floor plan, functionality, square footage, and number of bedrooms/bathrooms will also play a part in coming up with a fair price for the lender.  A thorough visual inspection of the interior and exterior of the property will allow the appraiser to note any issues that might have an adverse effect on the property’s value.  You may confuse a home appraisal with a home inspection, but they are not the same thing, A home inspection is a much more detailed evaluation of the home and does not involve the lender.

Usually the home appraisal will just be a box checked off on your home closing checklist. But if the appraisal comes in lower than expected, the purchase/sale transaction can be delayed or canceled.  Understanding the process and being aware of potential problems will help you be better prepared to handle whatever circumstances come your way. Your Mortgage Closing Checklist

If you are in the market to buy or sell a home, let Sandra Nickel and her Hat Team of Professionals assist you with all your real estate needs!  Call them today at 334-834-1500!

Photo Credit: totalmortgage.com

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Thinking of Selling Your House? You Don’t Have to Wait!

Wednesday, August 21, 2019
by The Hat Team


With autumn fast approaching, you may think that you should wait until next spring or summer to sell your house.  While it is true that the warmer months are popular for home sales, that doesn’t mean autumn is a bad time to sell.  Some buyers, such as empty nesters and millennials, prefer shopping for a home when there is less competition from people trying to move before the beginning of the school year.  So, if you would like to sell your house before winter, here are some tips for making it attractive to buyers during autumn:

  1. Keep the exterior of your home neat and clean.  Curb appeal matters…a lot. It doesn’t matter how pristine the interior is if prospective buyers never walk through the front door.  The first impression is made when they first see the property and if it doesn’t look good on the outside, they may not want to look inside.  There are unique challenges to keeping your yard looking nice when the weather is cooler and the days shorter. If you have a lot of trees dropping leaves, raking will be a full-time job.  You want buyers to see your grass!  Any dead or dying plants and flowers need to be removed or cut back.  Use a fall maintenance checklist to make sure you have your property in the best shape possible.  And if you really want to impress, plant some fall flowers in bold hues to add pops of color to your yard. Fall Home Maintenance Checklist
     
  2. Stage your house for the season, but don’t go overboard.  There are holidays to look forward to during the autumn season.  Potential buyers will enjoy seeing your home decorated accordingly. It will help them picture celebrating the holidays with their own families there. Keep it simple though, because you don’t want to take the focus away from the home itself.  You risk having your house look cluttered if you have too many decorations.  Embrace autumn and the warmth and coziness it exudes.  The smell of a freshly baked apple pie, the crackle of a fire in the fireplace and tasteful autumn décor might be all it takes to seal the deal on a sale!
     
  3. Make sure lighting is sufficient.  There will be prospective buyers who want to see your house after work and with the days being shorter, it might be dark outside when they get there.  You are not going to want them walking into a dark, unlit home.  Turn on the lights inside and out. Exterior walkways and entertainment areas, such as patios and decks, should be well lit.  If you know your house is going to be shown, leave lights on in every room.
     
  4. Price your house appropriately.  It’s important to know what homes are selling for in your area and to price yours accordingly.  Utilize the current market analysis to determine the value of your home.  A professional Realtor can help you set the right price for your home taking into account the season and market in which you are selling.  You don’t want to scare buyers away by overpricing your house. Montgomery Home Prices & Values

If you are thinking about selling your home this autumn, let Sandra Nickel and her Hat Team of Professionals assist you with getting it on the market and sold for the best possible price!  Call them today at 334-834-1500!

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The Price is Right - How to Price Your Home to Sell

Wednesday, August 1, 2018
by The Hat Team

When preparing to put your home on the market, there are a lot of things you need to think about: deciding if you should make home repairs and improvements, staging your home to impress potential buyers, keeping your lawn and house in prime condition for viewings and prepping to move.  But one of the most important decisions you must make is how much you should ask for your house. Determining the asking price for your home cannot be taken lightly. There needs to be some psychology and strategy used to decide the price that will sell your home in a timely manner and for the most profit.  You and your Realtor should identify and agree upon the approximate value of your property. You can use Comparable Sales of similar properties sold in your neighborhood to help you make this decision.

Next, you need to understand the price range for your list price.  Depending on market conditions, competing properties, time of year or inventory, the price range can fluctuate.  For example, a house with the asking price of $500 K can have a price range of $480 K to $520 K.  Once you have determined your home’s value and have a price range in mind, it’s time to conclude what your asking price will be.  This is where pricing strategies come into play.

- Appeal to multiple buyers - It may be tempting to ask for the highest price you think you can possibly get for your home.  But if you price your property on the lower end of the value range, you will likely appeal to more than one buyer and you might even have a bidding war amongst buyers who want your home.  Chances are you will get more than your asking price if this happens.

- Utilize psychology when choosing your asking price - Be careful of too many zeros.  For example, it is easier for a buyer to process $250 thousand than it is $250,000 - and $250,000.00 is even worse on the eyes. Buyers feel like they are being asked to pay more when there are more zeroes included in the price. It doesn’t change the actual price, but the perception of the price changes.

- Make sure it’s visible in real estate searches - If buyers are looking for three-bedroom homes under $400 K and you have your property priced at $405 K, an automated buyer search for properties under $400 K will exclude your home, meaning you will miss out on a lot of potential buyers. Experienced Realtors  will set up search parameters for buyers that include properties listed a little bit more above their price ceiling.  Keeping in mind that home prices are flexible, buyers could find the perfect match on a home above their limit, but with the possibility that it is in within a reasonable range of price or that it will be reduced.

- Have a price contingency plan before listing your home - You may have very high expectations regarding the worth and appeal of your home. If you insist on asking top dollar for it, you may get lucky (depending on the current market) and get it, or you may not get any full price offers at all. In that case, it’s important to have a contingency plan lined up before you list your home. That way, if you must lower your asking price, you will already be prepared for it and it won’t catch you off guard.

- Be flexible -  Setting an initial asking price is just the beginning of your home selling process.  A lot of different factors may come into play when selling your house, and you won’t be able to anticipate all of them.  Being flexible will allow you to react quickly to changing Market Conditions or new information and you will be more likely to get the best price for your home.

If you are planning to sell your house, contact Sandra Nickel and her Hat Team of professional Realtors and let them assist you in pricing it right for the current market.  Call them today at 334-834-1500.

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Resale Value - What Matters Most

Wednesday, July 11, 2018
by The Hat Team

Unless you plan to stay in a home for the rest of your life, resale value should be a major consideration when purchasing a house. Home-ownership is a huge financial investment and the goal should be to get as much monetary return as possible when you sell.  While you can’t always predict what the future holds for the real estate market, there are some basic guidelines for what kind of properties have good resale value.  Don’t make the error of focusing only on what you want when doing your home search.  Think about the following factors that will affect the resale value:

  1. LOCATION - This should be a primary consideration when looking for a home that will provide a good return on your investment.  A desirable location is likely to remain a hot market for home sales.  Think about the school district you will be in.  Even if you don’t have children in school, a top district will draw many buyers.  Different people will be looking for different things, but most buyers will want basically the same things from the location of the home. Home Buying: Location Matters
  2. NUMBER OF BEDROOMS - A house with more than two bedrooms will sell faster and for a better price than one with only one or two bedrooms.  Even a couple with no children will want extra space for an office or guestroom (or both).
  3. NUMBER OF BATHROOMS - Buyers will expect to pay much less for a home with only one bathroom.  If people are choosing between a house with one bathroom and one with two, they will almost always be willing to spend a little extra to get that additional restroom.
  4. GATHERING SPACE - Buyers want a large, informal space for relaxing and entertaining family and friends.  You will get more value out of a spacious family room than you will out of a formal living room. 
  5. STORAGE - These days people have a lot of “stuff” and they need places to put it all.  Storage space, including closets, a pantry and loads of cabinets will improve the odds of getting high bids for your house. 
  6. GARAGE - People who live in suburban areas need places to park their cars.  A covered parking place or two is ideal.
  7. OPEN FLOORPLAN - Buyers are looking for homes with open spaces and rooms that flow from one to the next.  A house with an Open Floorplan will improve your chances for a profitable resale.
  8. OVERALL CONDITION - A property that is well-cared for, updated and remodeled will greatly enhance resale value.  Focus on rooms that matter most to buyers - kitchens and bathrooms. Make sure everything is in good working order.  Some people might be looking for a fixer upper, but many buyers are willing to pay a premium for a move-in ready home.

If you are in the market for a new home let Sandra Nickel and her Hat Team of professionals assist you in finding your dream home.  Call them at 334-834-1500 today!

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