Thursday, May 24, 2007

A Receipt for a Successful Sale

Seven Main Ingredients that Make up a Sell / Purchase


When all of the following ingredients are in agreement…

Location:
To coin the favorite phrase of appraisers: “Location, Location, Location.” The pricing of your property must reflect its location.

Condition:

The upkeep and presentation of your property is crucial to obtain the highest value for your home in any given market at any given time.

Price:

Price is the number one factor in the sale of a home. A property is really only worth what one person is willing to pay another to gain ownership of it. Price must be in direct relationship to the other 4 ingredients and it is the most important of all!

Terms:

The more terms available on your property the more potential purchasers you reach. The pricing of your property must reflect the kinds of terms available to purchase it.

The Market:

I.E. Interest rates, competition, and the economy all make up and influence the state of the Market when you sell your home. The pricing of your property must reflect the current status of the Market.

Creative Financing

Financing can be time consuming and stressful. When the buyer is pre-approved it makes the process run smoothly.


A Good Realtor:

An agent that cares about what your goals are and is willing to work towards that goal of getting the best deal in a timely manner is exactly what you will need.
Setting the best price to list your home is part science, part art. There are several aspects of the home's value we consider when making pricing recommendations.

1. Comparison. Where does your home fit in the marketplace? It should be priced to be competitive with comparable houses in the same area.
2. Negotiation. The price should allow some space to make concessions in order to close the deal.
3. Return. The listing price should be set so you net the most money possible from the sale.
4. Target. Ideally, the price is adjusted to the top of a multiple listing category, so the home's features compare favorably with lower-priced homes in the range. (If it is placed at the bottom of the next higher price grouping, the higher-priced houses will look better and sell more quickly.)

Unfortunately, what you paid for your home is not a factor in determining its market value. Neither is what you would like to get out of the home. Some home improvements you've made may add to the market value, however. Having the house in picture-perfect condition from the first day of the listing may also increase the value of your home. But mostly, these will help you sell faster, and that could mean a sale price close to your asking price.

Don't offer gimmicks; instead, correct defects -- cosmetic and structural -- and price the property right. The biggest incentive you can give a buyer is a well-prepared home that's listed for a realistic price. The listings that are selling in today's market are priced right for the market, they look good and there's no doubt in anyone's mind that the property is available.
Consultation with an accountant and/or attorney is recommended before entering into any financial transaction.

1 comment:

Anonymous said...

People should read this.