November 11, 2015
9 Factors That Can Torpedo Your Home’s Selling Price
This story comes from http://money.usnews.com/ by Teresa Mears it talks about the important aspects that you need to know to sell your property. They point out a lot of good reasons that you may not be selling your property.
“While inventory of homes for sale is still low and many buyers are still looking for homes, they’re not willing to pay just any price. “They’re making more conservative decisions,” Richardson says. “What our agents are telling a lot of buyers is just wait.”
I have seen this personally with my buyers and did wait to long on one property that sold quickly. That property was both priced right and all the they kept all the information about all the very nice updates they had. After that they became conservative and will buy a property in the near future.
“Overpricing. By far, the biggest mistake sellers make is to set their home price too high, thinking would-be buyers will offer a lower price and they can use that as the starting point for negotiations. “If you violated it in the beginning, it can tend to languish, and you may end up selling it for less than you would have if you had priced it correctly to begin with,” says Kevin Brown Jr., president of Praedium Real Estate Services in Pittsburgh and a regional director of the National Association of Exclusive Buyer Agents. Houses that are overpriced tend to stay on the market longer, which makes buyers suspicious that there is something wrong with the home. “Right now, people are expecting they will receive multiple offers, and their house will sell for over asking price, no matter what,” says Sabrina Booth, an agent with Redfin in Seattle. “They tend to shy away from houses that come on the market overpriced. We’re seeing less competition at this time.”
Overpricing can kill your sell. A lot of investors and sellers really go nuts on the upgrades and spend money that they do not need to spend. For example some properties do not need the Granite counter tops. They add a lot cost to the project and sometimes it is violated. As an investor you need to undersatnd the market that you are selling in. You can put too much money and upgrades in a property that will not increase your property value.
“Difficulty showing the house. In these days of instant gratification, home shoppers want to see homes as soon as possible and at their convenience. If you make your home difficult to show, fewer prospects will see it, and it can take you longer to find a buyer. “If you don’t show it, you can’t sell it,” Francis says.”
This is really true with income properties. Investment homes that are hard to see because of tenants sometimes do not corporate with showing a home. That really effects the price and days on the market. So make sure that you have the tenants in line so you can show the property. If there are problems showing the property it gets around the Realtor community and it really effects the sell of that property.
“Bad location. If your house is next to an apartment building, a busy street, a school or otherwise is in an area that is considered less desirable, it will sell for less than a comparable home in a quieter area. In family areas, being in a bad school district also hurts home values significantly. In cities that rely heavily on mass transit, being too far from transit stops may be a detriment. If your home is near a noisy road, you may also have trouble getting full value for it.”
This is a major situation if you do not calculate in your price. I looked at a property last week and it was on the end of a busy street. It was also by a freeway that effected the price. That really effected the price about $10,000 on the resale. That is a lot when you are looking at a total selling price of $125,000 when you remodel it. So the selling would be $115,000.
There are a lot things that you need to watch out for when your selling a home that you live in or investment real estate. They all have the same varables that may effect you selling your property. Call me today Brett Young 216-703-5740 Howard Hanna