Coastal Luxury Homes

Home Value is Driven by the Market

The true about the value of your home is that at any given time, your home is only worth as much as the market is willing to pay for it. Whether the market is up or down, sellers have a tendency to overvalue their home, primarily because they have an emotional attachment to it. A current market analysis (CMA) of recent home sales in the area is an objective starting point to help determine the true value of your home.

Active Listings Are Worth Considering

It’s helpful to look at the current asking prices to understand directionally where the market is going. However it’s important to realize that those current asking prices are not sold prices and still subject to negotiation. Don't let them be the only factor in deciding your home's selling price.

Set the Right Price in the Beginning

It’s no secret that the best pricing strategy is to list the property at the right price from the start. Some sellers want to take a chance and overprice their home. This strategy seldom works except in cases where a property is highly desired by buyer who is willing to pay a premium for it. More often than not, the property sits and a price reduction (or two) is inevitable, resulting in the property selling for a lower final sales price.

Home Upgrades Don’t Always Add Value

It’s also important to realize that home upgrades don’t automatically translate to a higher selling price. A potential buyer make see the in-ground pool as a hazard for children and a maintenance expense ,and the mosaic tile floor in the foyer as an eyesore that needs to be replaced immediately. While special to you, they may not be to the prospective buyer.

Think Like a Buyer

When determining the selling price of your home think like a buyer. They are comparing your home to the other properties available on the market at the time, so consider how your home compares to these. The selling price should then reflect your findings.

Avoid Seller's Remorse

Sometimes homes sell quickly. That’s a good thing! A quick sale does not necessarily mean you underpriced your home. More than likely it simply means you priced it right. If you priced it based on the CMA and active listings, and followed the advice of your REALTOR® chances are you didn't sell too low. Consider the positives. Getting the sale done quickly will save you time and may help you secure a contract on a new home. Selling quickly is not a bad thing if it helped you meet your objectives.