Pricing Your Home to Sell

Choosing the right price for your home is one of the most important aspects of selling your home. If your price is above market value, you run the risk of it sitting on the market too long.

An overpriced property:

• Minimizes the number of offers


• Limits qualified buyers


• Reduces the number of showings


• Lowers prospects


• Limits financing


• Will attract buyers in a higher price range that have high expectations

Most buyers today are educated about the home buying process and have done their homework before purchasing a home. They will know if your home is overpriced.

In choosing the right price for your home, the market is the most accurate indicator. The condition of the current market, the number of buyers, and current competition will dictate your home’s value. If your home does not meet the competition price, it simply will not sell.

Keep in mind that the value of your property is not dictated by what you’ve invested in the property, what you paid for the property, or by the amount you feel you need to receive from the property.

Choosing the right price for your home will increase advertising response, stimulate buyer interest, compensate for property shortfalls, and provide you with a negotiating advantage.

Feel free to contact me if you are interested in selling your home and finding the right price to get it sold in today's market.

Troy Batson is a licensed broker in the State of Oregon ~ troybatson.com ~ Duke Warner Realty ~ 1033 NW Newport Ave. Bend, OR 97701 ~ (541)382-8262

Will my Bend, Oregon home ever appreciate?

The bad news: It’s unlikely that we will ever see homes appreciate the way we did leading up to 2006.

The good news: It’s likely home prices will eventually rise, albeit modestly, and your home could appreciate.

So what do you look for in a home when buying to increase the chances of appreciation?

Location, location, location! It’s a real estate cliché, but it makes sense once an investor understands the impact of land value on appreciation.

The reason that land is an appreciating asset is because of supply and demand. Land is in limited supply, and no one is producing any more. The demand for land is constantly growing as the population increases. The reality is that the physical structure will likely depreciate over time. With regard to appreciation, homebuyers should look past the physical attributes of the home and focus how its location in the market will affect overall return.

Other considerations regarding the location of a home that is more likely to appreciate: Is the home in a more private and desirable cul-de-sac or on a more frequently used street? What is the condition of the neighborhood? What is the proximity to recreation such as golf courses, parks, and colleges?

• Buy during the winter. Often, many sellers who choose to sell during the wintertime are looking to sell quickly. Also, many homes listed for sale in the winter are generally not new homes and may consequently have price reductions. You will have less competition during the winter because most people don’t want to move during cold months. If you buy your home during a time when there is less competition, the chance of appreciation will increase.


• Be mindful of potential future development. Future development can change your property’s value for better or worse. Be mindful of the present state of local amenities as well as the future prospects for commercial and governmental development. The demand for real estate is affected by the availability of jobs, the availability of land, proximity to shopping, schools, parks, churches, population changes, desirability of an area, crime levels, zoning changes, etc.


• Consider cost-effective improvements. Certain improvements can increase the value of your home. However, other improvements, dollar for dollar, produce a low return. Plan carefully and make improvements that result in the highest level of appreciation for the money that you spend. If you make too many costly improvements, you will likely not recover those costs when you sell. Adding a garage door can get you a higher return on your investment than some other upgrades. A wood deck or a minor kitchen remodel can recoup a higher percentage of their costs than major remodeling projects such as adding a wing to your home. Remodeling your basement or adding an attic bedroom can also generally get you a high return.

When asking yourself, “Will my home appreciate?” it’s important to look beyond the physical attributes of the home and focus on the potential for land appreciation. When buying a home, concentrate on properties that provide opportunities for improvement to enhance the value of the land. If you are interested in tracking appreciation, visit the site of the Office of Federal Housing Enterprise Oversight (http://www.fhfa.gov/), which allows you to check the housing appreciation in your area.

Troy Batson ~ Broker

Duke Warner Realty

1033 NW Newport Ave Bend, Oregon 97701

541.678.3725 or 541.382.8262

troybatson@dukewarner.com

troybatson.com

What is a Comparative Market Analysis or CMA?

If you're thinking about selling your home or property, a comparative market analysis or CMA is a great way to help you determine the actual value of your home.

You could conduct your own comparative market analysis, but it's best to seek the assistance of a trained real estate professional. Real estate professionals have access to up-to-date geographic-related information about:

- Active, pending and expired real estate listings
- Comparable home sales
- Market trends including the average number of days area homes remain on the market before they are sold
- An area's recent highest, lowest and average home sales prices

When you enlist a real estate agent to provide you with a CMA, you are likely to get more complete information faster. An agent will also help you to analyze the information in a comparative market analysis. A CMA is in no way a price guarantee. There are many factors that go into pricing a home and some of them are very personal including a seller's motivation. Some sellers are financially distressed, or are under pressure to relocate for employment purposes and are willing to drop the price of a home for a quick sale. Other sellers are willing to wait for the right buyer to purchase his or her home at a premium price.

The depth of comparative market analysis reports varies. Ask your real estate agent to explain what you can expect to learn from the CMA he or she provides. At the very least, a standard CMA will include:

Active listings or homes currently for sale. This will give you a snapshot of homes your potential buyers will be viewing and comparing to yours. A seller can list a home at any sales price, so be careful not to read too much into active listings. In the end, a home is worth what a buyer is willing to pay.

Pending listings. A pending listing is a home under contract. This means the sale has not yet closed. Like sold listings, pending listings can help you determine what buyers are willing to pay for property comparable to yours. Because pending sales are still in the legal negotiation process, this information is often kept private.

Sold listings. Appraisers are strongly influenced by the price at which comparable homes have sold in the same geographic area as your home. An estimated market value will be largely based on sold listings.

Withdrawn or canceled listings. Sellers sometimes withdraw their homes from the market and the reasons vary. A change in life circumstances, low offers, and repairs required for buyer financing are just a few. This information can, however, be very helpful in determining how high is too high.

Expired listings. An expired listing is one that has been on the market beyond the length of a realtor contract. Sometimes these properties are overpriced. Sometimes they are not marketed aggressively. Occasionally a seller will change agents in the middle of the sales process.

It is very important to only compare properties that are similar to yours in a comparative market analysis. In some locations, this will be hard to do. Important comparables include:

• Square footage


• Location


• Type and age of construction


• Amenities and upgrades


• Condition

Of all of these factors, you have the most influence over condition and amenities and upgrades. A thorough comparative market analysis or CMA will help you determine whether or not repairs and upgrades will significantly increase the value of your home. It's best to seek a CMA before spending too much money on repairs and remodeling.

Call us today for your comparative market analysis or CMA. We're here to help you price your home right.

Troy Batson ~ Broker
Duke Warner Realty
1033 NW Newport Ave
Bend, Oregon 97701
541.678.3725 or 541.382.8262
troybatson@dukewarner.com
troybatson.com