"Price can fix condition but condition can not fix price!" My new favorite quote!
Regardless of how bad of shape a property is in it WILL sell - at the right price! However, just because a property has been updated beyond the updates of properties around it does not mean it will sell for more! It typically means it will sell faster...but in the same price range as the homes available around it.
When sellers determine the price of their home they tend to start with the price they paid for it and then add in everything they did to the house. So, Bob bought his house for $350,000 and then he put in ceramic tile and painted and added a few cabinets...for a total of $50,000. Now Bob thinks his house should sell for $400,000. However, if the homes around him are still listed at $350,000 and under then Bob is not going to get much more than $350,000 for the home. He must be competitive in his pricing AND offer more than the competition. This will get his home sold faster...but not for more.
Pricing has nothing to do with ANYTHING except what a buyer is willing to pay. If buyers are only paying $350,000 for homes in Bob's area then why would they pay $400,000 for Bob's house? Maybe Bob should rethink his asking price and base it on the competition instead of on what he has in it or what he thinks must get out of it.
Monday, September 20, 2010
Monday, September 13, 2010
So, how's the market? The TRUTH!
The 20 million dollar question for real estate agents these days - "So, how is the market"....well - here ya go...
The market is great. There are plenty of buyers and they are all very anxious to buy NOW! The interest rates for mortgages are at all time lows and prices are down - there has never been a better time to buy and probably won't be a better time to buy again in our life times.
So...why are there so many homes on the market then? There are so many homes on the market because sellers are not accepting the reality of the market. The buyers determine the price of your home - nothing else! It doesn't matter how much you paid for it. It doesn't matter how many upgrades you made. It doesn't matter how much you need for your next down payment. ALL THAT MATTERS IS WHAT A BUYER IS WILLING TO PAY FOR IT.
Buyers today are smart. With today's technology buyers have access to more data than ever before. They KNOW what homes are selling for. They will NOT over pay for a home.
Think of it this way - if you went to Best Buy and found a computer for $1200 and then went to Wal-mart and found the very same computer also for $1200 but it came with free speakers and a 1 year internet subscription....which one would you buy? Or, if you went to Best Buy and found a computer for $200 and then found the same one at Wal-mart for $500 which one would you buy? Buying and selling a home is NO different.
So, yes - homes are selling and there are plenty of buyers.
Sellers - do yourself a favor and find a realtor who is not afraid to break the news to you that your house is not worth what it was a few years ago. Find an educated agent who sells real estate FULL time (not a hobby or side job). Find an educated agent who knows the market and knows property values - one who has their hands dirty from digging into the facts day in and day out. Don't choose the realtor who agrees to price your home at whatever number you pull out of the air...you'll still be owning that home for years to come. Get the facts, study the numbers, and make an eductated decision based on current market data. Price your house right and it will sell!
The market is great. There are plenty of buyers and they are all very anxious to buy NOW! The interest rates for mortgages are at all time lows and prices are down - there has never been a better time to buy and probably won't be a better time to buy again in our life times.
So...why are there so many homes on the market then? There are so many homes on the market because sellers are not accepting the reality of the market. The buyers determine the price of your home - nothing else! It doesn't matter how much you paid for it. It doesn't matter how many upgrades you made. It doesn't matter how much you need for your next down payment. ALL THAT MATTERS IS WHAT A BUYER IS WILLING TO PAY FOR IT.
Buyers today are smart. With today's technology buyers have access to more data than ever before. They KNOW what homes are selling for. They will NOT over pay for a home.
Think of it this way - if you went to Best Buy and found a computer for $1200 and then went to Wal-mart and found the very same computer also for $1200 but it came with free speakers and a 1 year internet subscription....which one would you buy? Or, if you went to Best Buy and found a computer for $200 and then found the same one at Wal-mart for $500 which one would you buy? Buying and selling a home is NO different.
So, yes - homes are selling and there are plenty of buyers.
Sellers - do yourself a favor and find a realtor who is not afraid to break the news to you that your house is not worth what it was a few years ago. Find an educated agent who sells real estate FULL time (not a hobby or side job). Find an educated agent who knows the market and knows property values - one who has their hands dirty from digging into the facts day in and day out. Don't choose the realtor who agrees to price your home at whatever number you pull out of the air...you'll still be owning that home for years to come. Get the facts, study the numbers, and make an eductated decision based on current market data. Price your house right and it will sell!
Friday, September 3, 2010
Who doesn't need some extra money?
Keller Williams is the 3rd largest real estate company in the country. How has it grown so fast in such little time?
KW has become so successful for several reasons - training, agent involvement in leadership, etc.
One of the greatest reasons KW is so attractive to agents is because of its "agents are the owners" approach. All agents have the opportunity to invest (without money) in themselves and in their futures to create passive income. Most agents do not have a retirement plan...because they are independant contractors and can not afford (or do not care) to save for retirement. With the KW approach you can built a retirement fund with NO MONEY from yourself! It's easy and it's awesome!
Want more info on how being a KW agent means soooo much more than just selling houses? Want to know how to build your passive income so you can quit chasing leads someday? Give me a call! 228-223-6560!
KW has become so successful for several reasons - training, agent involvement in leadership, etc.
One of the greatest reasons KW is so attractive to agents is because of its "agents are the owners" approach. All agents have the opportunity to invest (without money) in themselves and in their futures to create passive income. Most agents do not have a retirement plan...because they are independant contractors and can not afford (or do not care) to save for retirement. With the KW approach you can built a retirement fund with NO MONEY from yourself! It's easy and it's awesome!
Want more info on how being a KW agent means soooo much more than just selling houses? Want to know how to build your passive income so you can quit chasing leads someday? Give me a call! 228-223-6560!
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