Not that I really want to bang the same old drum but pricing homes to sell is the number one key to selling. Why? It’s quite simple. Any objection can be overcome by price. I’ve recently talked about what home sellers want from listing agents in terms of finding buyers and selling quickly and pricing a home right seems important to many home sellers too.
Now that our markets are recovering, albeit some faster than others, sellers can look forward to higher sale prices rather than lower ones. Caution is needed though, here in Barrington it’s a slow climb up the ladder. Other areas are increasing much faster.
So today let’s look at how home prices are established and how we can do a better job of getting the pricing right from the get go.
This is huge in the building blocks of establishing prices. I think it’s fair to say no home sellers need to worry about having short sales or foreclosure sales used when finding comparable properties sold. Here in the Barrington Illinois area we are experiencing very few of either and far more regular resales. Other northwest suburbs may have more distressed sales than Barrington and other higher priced communities, but all our markets are positive and I would fight any appraisal that still used them.
Listing agents should seek to find similar homes sold in the last six months. In a fast market six months may be too long ago and three months more realistic. Similar homes should be measured by:
- Same zip, city, town, village and if possible neighborhood.
- Square footage to be within 10-20% of each other.
- Bathroom count, bedroom count to be same or very close. More flexibility with bathrooms than bedrooms.
- Same model style is awesome if you can find them, rare in areas of custom homes like Barrington, Long Grove etc.
- School districts play a huge role in finding comparable home sales.
- Basements should be the same, full, walk-out, partial, finished or non finished.
- Age of property is ideal if less than 10 years difference.
- Yard size especially in country suburban areas where lot sizes are measured in acres.
- Zoning. i.e. horse properties should be the same.
Finding comparable homes this way is a very good place to start. In a little while we’ll look at making adjustments. First I want to let you know why local Realtors are your best choice for listing agents.
It’s very true to say that all Realtors in the MLS have access to the same data and yes they can seek and find comparable sales. However if they are not local it’s unlikely they’ll know the nuances of communities, neighborhoods, even parts of neighborhoods. Your local Realtors will, especially those that actively sell.
Barrington Realty Company has been around for a long time. We’re focused on Barrington and the surrounding northwest suburbs and we also live here. Our daily blog addresses real estate topics in general and for the markets we serve including statistics for sales.
Once we’ve identified the comparable sales we may need to make further adjustments. Superior updates can add quite a lot of value to a home. Consider semi custom homes with kitchens than can cost $50,000 to upgrade. A new updated kitchen with all the bells and whistles will value about 80% of the cost if done in the last year. A waterfront front home adds value, a home backing to a busy road reduces value. Swimming pools, do these add value or worse, reduce value? There are many more adjustment scenarios but you get the idea.
You may have an idea of what you think your home is worth. You may even have had an appraisal. At the end of the day it’s the market that will determine the worth of your home how much a buyer is willing to pay.
If you are in the market to sell your home in 2014 we are ready to give you the honest opinion of pricing you deserve. Contact us at your convenience by email or call Corinne at 847-363-3686. You can also provide all the details for an estimate and send in advance of an appointment, it will help us to start work on your home value.