Sellers Get Rewarded Knowing These 5 Myths
And New Owners Inherit Your Hard Work
Pricing your home is hard and you want to make a profit… right?
The National Association of Realtors®. the group predicts that existing-home purchases will rise an additional 2.8% in 2018, to 5.8 million. And the number of sales of existing homes (which have previously been lived in) is expected to rise about 3.5%, to 5.64 million by the end of 2017.
However the combination of 16 million new jobs since 2010, new record highs in the stock markets, and consumer confidence are giving households the ability to purchase a home." NAR Chief Economist Lawrence Yun said in a statement. "However, prices are still rising too fast in many areas and are outpacing incomes." (Do you remember 2008 Real Estate Bubble?)
So that money you spent installing a swimming pool or a half-bath will be recouped, because you’ve made improvements just like some of your neighbors did here in West Michigan.
Not necessarily, many times sellers fall prey to myths in the media about home prices that seems to make sense when you first hear it but don't jive with the reality of the real estate market today. Let's make sure you don't get caught up in the fake info--because your buyers are pretty savvy.
Here are some common home pricing myths you need to know about before you kick off your home selling venture with a realistic expectation. Not fake pricing but fair pricing to reward us and profit us.
1. Being told you always make money when you sell a home:
Sure real estate trends do appreciate in time and the National Association of Realtors® estimates that prices will rise 3.5% for 2017 and 2.8% for 2018. However your return on investment will vary depending on where you live.
2. Pricing your home too high then you can lower it later if needed.
Not good, lower by lowering your pice later on is not that easy of a fix. Reason being, homes that have lingered on the market for months or a couple of price reductions wil alert the buyer to presume there is something wrong with your home. They may even steer away and go somewhere else or even offer less than your last asking price.
3. Always add up all your improvement cost to your asking price.
Not all improvement cost are created equal to recoup your investment so choose wisely before you sell. After all, the new homeowner will inherit your hard work. Check out these common renovation for the percent of return on your investment. The average home improvement cost will get back a 64% return on your inventment.
4. The past appraisal you have will help you get that magic number price.
If you have an appraisal fromwhen you bought the home or refinanced you might think it is logical to start there to price your house. Nope...
An appraisal gives you a home value at the time of market conditions on a specific date, so it is old news, pretty quick. Many lenders will not except appraisals if they are 60 days old. Previous appraisals are never reliable for current market home prices according to many lenders.
5. Pricing your home low will get you less money.
Some sellers are squimish to price their homes on the low end which is counterintuitive but this strategy can often pay-off big time. Here's how it works: Low priced homes get a ton of potential offers and then results in a bidding war which could drive your home price higher then expected.
This report was created so you as the homeowner selling your home can get ahead of the game of wealth.
There is a famous fraise in real estate; Presentation,Education, Nagotiations [ P E N ]
Let's put a PEN to your home rewards so you can move forward in life.
I am here in your neighborhood to help you; Terry Reeves