What Sellers Should Know About Pricing

Pricing is always a very important factor when it comes to selling your home, it will usually be what makes or breaks the decision for many homeowners.  Whether you bought your home in the height of the market for top dollar or for those who have owned it for many years the realization of what your home is worth will often come as a shock to your system.  This blog explains how and why the pricing of your home is so important, and hopefully some tips to help those sellers to sell fast and for top dollar !

The Power Of Pricing 

• Many homeowners believe pricing it a bit higher will leave room for negotiations but with today's technology it will often keep the home from being shown or even seen.  There is no way for your Realtor to tell those who are browsing online that the homeowner has a large amount of negotiating they are willing to do, and with inventory still high buyers can/will bypass to the next home.  
• Market pricing, allows the home to have the average amount of showings, and than value will than be determined by the buyers.  We will always suggest paying careful attention to the feedback after ALL showings to get the buyers perception of value.  In some cases it will be helpful, and in other cases buyers will simply want to go with the lowest number possible - your agent will be the one who can make that call since he/she will have the comparable homes to show an educate both you and a potential buyer.  
• "Power Pricing" is something that Coldwell Banker Residential Brokerage has actually adapted a completely new system of advertising for.  These listings are not just priced and set up the same as the others because they are priced to sell within 30 days for ideally above the list price.  This is done simply by creating a perception of value immediately with a slight price adjustment and additional advertising - todays buyers are educated they will know a great value when they see it ! 

Broker Open Houses

• There are 2 reasons why Realtors will hold Broker Open Houses, the first of which is of course to show off the listing by letting the other Realtors preview the home in order to determine if they have a buyer for it.   Brokers in the area will want to be up to date on all listings not just those in which they have listed. 
• The 2nd reason is because after we have the home listed we want an educated perception of value from the agents in the area.  The feedback of the realtor vs a buyer is priceless because their is no emotional attachment or low-balling to get a good price it is simply other professionals giving an opinion.  This would be similar to you interviewing 6 or 7 realtors to get the opinion on price without the never ending interview process.  

Showings & Offers 

• If your not having any showings, and your listing information is accurate and descriptive than chances are your home is overpriced.  Your listing should be giving buyers a virtual tour of everything your home has to offer, now if you are not giving much information in your listing that can also be the cause of your home not getting showings or inquiries.  The best way to avoid this situation is to look over your listing prior to it being posted on MLS and look at it from a buyers point of view.  
• If your having a lot of showings but no offers coming in than again you can attribute this many times to it being the price, BUT their are some listings that just need a particular buyer.  If your home is something "out of the ordinary" that will usually be the case.  Being in Babylon Village this can often times happen because their are a larger amount of small cottages and vacation homes that are on the market.  These homes will often spend time on the market not because they are overpriced but because it is meant for a very particular buyer.  You should always make sure that you work with a company from your area for this reason, you want a Realtor who knows your market specifically  not one whose area is towns away.  
• Low-Ball offers on a home that is obviously worth more than the buyers opinion are often a sellers nightmare.  Although most buyers are highly informed and use a Buyer Broker, it will not stop these low ball offers from coming in.  This again is why having feedback from the brokers open is so important, you will be able to be confident in not entertaining those offers because you now have multiple sources of the value of your home.  

Features VS A Value 

• Many sellers attribute their homes features and values to large increases in their homes price.  Unfortunately the bank might not see those in the same monetary amount as you may think.  There is an entire blog outlining what you can expect for the bank to allow you to use to up the price of your home HERE.  
• Always keep in mind when it comes to features and values that it is really buyer dependent.  The homeowner might see their pool as a feature, but buyers might not see it that way - luckily things like pools are something that the bank will allow an increase in price but what about when it is something that they might not ? There are times when a homeowner will do things to their home not because it raises the value but because it is their personal taste - the best way to tell if you are adding value or just over-investing is by scoping out your neighborhood.  If you see that all of your neighbors have done updated siding rather than leaving the original shingles than it is safe to say it will be a good value to add to your home as well.  

Coldwell Bankers "We Believe In Opening Doors" Open House Weekend

I often write blogs about open house and what you should do to prepare, and during your open house.  This weeks blog will be a bit different because not all Real Estate agents hold open houses, but it is a very big part of selling your home because it has to do with the availability of your home.  When your meeting with listing agents you should be asking them their opinion on open houses and very specific questions.  Many times I speak with homeowners after their listing has expired and their biggest complaint has to do with the open house aspect, there are very specific questions you should be asking before you list your home regarding open houses.  

• How Often Do They Hold Open Houses: This is important this way you will have an idea of when your open houses will be and what kind of notice you will have before it is held.  

• Who Holds Their Open Houses: Many times we will have agents hold open houses for us, because we can't be at all of our listings at once.  Personally I try my best to hold them in order to make sure I get the correct feedback information for my sellers.  If this is something your not comfortable with you should be upfront with the agent, if they disagree than interview more realtors who will be willing to work with you on this.  

• What Happens During Their Open House: You will want to know what will be going on as far as advertising and showcasing your home during the open house.  I have chosen to give as much information as possible not only about my listing but also about the community.   All buyers receive a buyers folder opposed to a single hi-lite sheet.  

• When & Where Is It Advertised ? Sometimes agents will only advertise your homes open house on MLS, you want to see what additional advertising is done.  Coldwell Banker Residential Brokerage is one of the companies that opts to take out a full page ad and list all of our open houses.  

Another important part of your home being listings is about what that company does differently.  This weekend Coldwell Banker Residential Brokerage is very active within our communities.  We will be holding a huge open house event this weekend on June 21st & 22nd where all of our available homes will be open to the public.  Be sure to check the schedule to see what homes in your area will be included.  For the Full PDF Schedule Click Here. 

Home Sweet Home Improvement

If your thinking about putting your home on the market, and you want to get top dollar from your home the saying you need to spend money to make money is often the last thing you want to hear.  There are plenty of inexpensive ways to help improve your homes chance of selling, you don't necessarily need to spend thousands of dollars by doing a complete overhaul but certain key changes can really change the overall appearance of a room ! 

• Kitchen makeover. The kitchen is the most popular room in the house to remodel. Most in the industry will tell you money spent upgrading a kitchen produces the highest return on investment. One of the best things you can do in a kitchen is replace the countertops, sink, and appliances.  Depending on the size of your kitchen you can get remnant pieces of granite, or another great option is butcher block counters they always give a kitchen a great clean look ! 

• Bathroom fixer-upper. Upgrading a bathroom is another sound choice and will often provide a significant return on investment, as large bathrooms typically top the list for those seeking a new home. A quick change of a vanity, toilet, lighting, and fresh paint can cost under $500 and give your bathroom a great facelift ! These are simple things that can really give a buyer a fresh look at your space ! 

• Flooring updates. Many homes on Long Island have hardwood floors if they were built in the 60's or 70's whats amazing is the builders than covered them with carpeting ! If you have hardwood floors pull up that carpeting and show them off ! If you have bright colored carpet trade it out for more neutral colors this can help the buyer visually picture their furniture instead of thinking about what exactly would match your carpet ! 

• Create Outdoor Living Space. This is another great trick, and the best part is normally you will get to take your upgrades with you.  If you have a nice patio you can buy some new furniture, solar lighting, and a few potted plants can show the buyer the potential in even the smallest yard plus that new patio set will come with you to your next home ! Solar lighting and bright colored plants are also a great option for your front yard to help your curb appeal ! 

Whether or not you choose to update your home there are some things you should do and I can not stress this enough but de-clutter your home.  Pack up what your not going to be using (seasonal clothes, holiday decorations ect.) and put them into your attic or storage facility ! I can't tell you how many times homeowners de-clutter the home but put it all into their closets and than we have an avalanche when the buyers open them up ! You want the buyers to have the space in your home to see what it will look like with their furniture and their family living there ! Almost every buyer whom I have had buy a home, always took the time to figure out where there things would fit before making the final decision !