Monday, April 6, 2015

Can I Sell My Home?

As a New York State licensed real estate salesperson, a Real Estate Cyberspace Specialist, and an Ecobroker, I am asked all the time, "Can I sell my house?" Generally, I answer that any house can be sold, if it is priced correctly, and one will generally receive his best offer in the first few weeks after a house is listed on the market. As a Certified Buyer Representative (CBR), buyers often ask if a house is priced properly, how much wiggle room there is, and how quickly a specific house might sell, as well as how long it has presently been on the market.

In all economies, houses sell. Obviously, there is quite a bit of price fluctuation, and there are areas where the real estate market is stronger, and others where the housing market is weaker. The key, however, to marketing and eventually selling one's home, is properly pricing it from the very beginning. Too many homeowners list their homes with whichever real estate agent suggests listing the home at the highest price, yet that is probably the worst strategy in most cases. If a homeowner truly wants to sell his home, the price asked for the home should be based on a tightly and properly prepared, in-depth, professionally formulated Comparative Market Analysis, known commonly as a C.M.A.

A Comparative Market Analysis evaluates homes in very comparable areas, nearby, in the same condition, with similar attributes. It should look at homes on the market presently, houses that have sold recently (in a weaker market, only prices of houses sold in the last approximately six months should be considered), and houses that the listing expired, which means did not sell during the listing period. Homeowners should understand that today most buyers begin their search on the internet, and the majority of them do a search by area and price range. Therefore, pricing a house at $799,999 will often appear in many more searches than, for example, pricing it at $800,000.

When pricing one's home, and doing accurate comparables, the clever agent will recommend pricing at or below the median price in the group of homes on the market in similar condition, etc. The key to selling one's home is most often statistical, which means the more "looks" at the house, the better the chance of it selling. In general, if a house is getting few looks, the listing price is too high for current market conditions. If the house is getting looks but no quality offers, either there is some "sticking point" that is causing resistance, or the house "does not show well."

A few years ago, I had a quality, pre - approved client that I was helping as a buyers' agent. This couple had specific needs, and had more than twenty percent to put down, excellent credit rating, and was motivated. The house they were interested was a lovely house, but had certain limitations. The sellers listing price was $879,000 although nothing on the block ever sold for more than $828,000, and the one house that sold for that price, was a new "build," and was sold in a stronger housing market. Realistically, this house should have been sold for somewhere in the low $800,000 range. After several offers, my client offered his final offer of $820,000, and the buyer would not come anywhere close to that price. In my opinion, it is doubtful, in the present market, that there will be any other offers nearly as high. The bottom line is that house remained on the market for a considerable amount of time, and continued to be listed at $879,000. Eventually, the house did sell, but at a price lower than what my clients offered more than 6 months earlier. Whether it was an unrealistic homeowner, or a weak or poorly informed real estate agent, the seller certainly did himself no favor, and unfortunately, this occurs quite often.

Houses sell in every market. Yes, sometimes it might be  more difficult to qualify and get a mortgage, and banks may be more conservatively appraising houses values in terms of how much mortgage to offer. Yet, if one has a decent financial record, has twenty percent to put down, and is realistic, houses sell, and are a good deal.NEVER over - generalize how you should proceed or price a home. The best rule is to speak frankly with your quality, selected real estate professional, and price it right from the start. Discuss how changing scenarios might impact the marketplace, and be prepared so you can seamlessly adjust your strategy, including pricing, philosophy, degree of flexibility, ertc.



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