Making sure “The Price is Right!”
- Jun 8, 2016
- 2 min read
The last seven years were really hard on many markets, but especially the real estate market. Builders and developers went bankrupt, as did real estate agents, property values tanked and so many home owners were underwater in their current home and mortgages, unable to sell or buy anything new. Well, the storm has passed here in the Atlanta market and things are anew here in our metropolitan city of the south! New construction is prevalent with cranes and building equipment everywhere, for sale signs up, under contract signs on top and moving trucks backing into driveways!
The neighbor’s house sold in 3 days! (Really “under contract”, but I digress!) Now you’re thinking about putting your house on the market, too! Prices have increased and you are finally right side up in the market. But before you get too excited about the $100k profit you think you can get, some homework is in order. No matter how much you think your house is worth it is only worth what the market will bear – in other words, it is only worth what someone will pay for it. And even then, there is the appraisal process to get through which is a whole ‘nother topic for ‘nother blog – specifically part 5.
It is important to ask your agent what information they have gathered about their home and the neighborhood. What prices have other homes in the area sold for and how long ago? Are they willing to call the other agents to find out what the neighbor’s house is under contract for? The listing agent may not be able to tell him or her, but that buyer’s agent might. What have they been encountering with the recent appraisal processes? Do you have a “professionally” fully finished basement that the neighbors do not? Do you have granite countertops and a remodeled master bath? Have you replaced the A/C and furnace units? These are all questions that have to be answered before coming up with a price you feel is right.
Arm yourself with a knowledgeable agent who knows the area, the surrounding houses, and what you need to do to your home to get the most money in the shortest amount of time on the market. Pricing it right can mean a quicker sell, meaning less mortgage payments and the ability to start looking for your future dream home. Don’t be so quick to choose an agent that will agree to sell it high – ask them what their listing price to selling price ratio is. Choose an agent who cares more about your wallet than theirs.
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