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The market determines what the house will sell for.

“What will our house sell for?”. I or no one else can tell you what your home is worth. The market determines what the house will sell for.

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The market determines what the house will sell for.

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  1. “What will our house sell for?” I or no one else can tell you what your home is worth. The market determines what the house will sell for. As a broker my job is to show you what your house will sell for now. We will look at a range of prices being paid for homes similar to yours in our area and then adjust the different features which will show us what price range your home is in.

  2. Proper Pricing • Better response from marketing • Increased salesperson response • Less negotiation • Attracts higher offers, means • more money to you • Less time on the market • Less inconvenience • Avoids being “shopworn” • Let the market chase you • Don’t chase the market!

  3. Who Controls What? Selling Factors Who Controls Location Given Marketing Broker Condition Owner Price Market How do buyers determine price? • By comparing your home to other homes sold and for sale at the time. • Buyers still determine the price they wish to pay for a home by • comparison shopping.

  4. What is the Current Market Trend? ? Rising R E A L E S T A T E V A L U E S Flat Falling ? T ODAY T I M E

  5. Criteria Most Likely to Influence Value • Location (street) • House size (sq.ft) • Lot Size (sq.ft) • Main floor family room • Extra Bathroom • Extra Power Room • Extra Bedroom on Main and Upper Floor • Garage vs None or Extra Garage • Finished Basement vs Partially or Unfinished

  6. Items that Improve Salability & Offer Reasonable Return on Investment Renovated Bathroom Renovated Kitchen Fireplace Heat Pump Extra Bedroom in Basement Renovated Powder Room New Windows Central Air Conditioning Forced Air Heating

  7. Criteria Most Likely to Influence Value Items that Improve Salability & Offer Slightly Less Return on Investment Fence Car Port Wood Stove Solarium Wood Floors Patio New Furnace New Siding Deck

  8. Items that Improve Salability & Offer Minimal Return on Investment Roof Ceiling Fan Carpeting Cabana Central Vac Extra Closets Satellite Dish Inground Pool Ceramic Skylight Unistone Driveway Linoleum Floating Floor Light Fixtures Painting Garburator Upgraded Plumbing Sprinkler system Repaving Intercom Brick Pointing Upgraded Electric Alarm

  9. Principles of Substitution I need to get my costs out of it… VALUE $450,000 VALUE $___________? Value is determined not by what the owner has in a property… It is determined by what a purchaser gets out of it…

  10. Value of Improvements What about the value of my improvements? ? When were the improvements made? ? At that time, were you planning to stay or move? ? If you’d know you were moving, would you still have made the improvements, or spent as much on the improvements? ? If improvements were removed, how much would today’s buyer pay to have them put back?

  11. “They Can Always Make an Offer” If you overprice… The right buyers won’t see it. And the higher priced buyers won’t want it… Asking Price Value Buyers

  12. Search Homes to Show by Price Range Real Estate Brokers don’t determine what buyers BUY, they determine what buyers SEE… If your home is priced even $1 higher than their target price range, it won’t be on the show list…

  13. “Couldn’t we just try it for a couple of weeks?” S H O W I N G A C T I V I T Y When selling a property above the market, time IS NOT on your side! TIME

  14. The Best Offers are Usually the First Offers… % OF A S K I N G P R I C E 100% TIME

  15. “We want to test the market” Comparative Market Analysis 123 Main Street, Any town, Quebec, J0P 1P0 The Comparative Market Analysis was the Test…

  16. “We are moving to higher priced area” $825K $425K Destination Market Local Market Your destination doesn’t affect the value of your home… The market does!

  17. “We’ve had a higher appraisal” • Inaccurate comparables • Timing • Insurance Assessment • Bank Refinancing + ADDED VALUE $ MARKET VALUE OF THE PROPERTY What buyers are paying… $ • Inaccurate Comparables • Timing • Bank Mortgage • NEGATIVE • VALUE

  18. Progression & Regression Progression Progression : The value of a smaller home is increased by the influence of larger surrounding homes. Regression Regression : The Value of a larger home is reduced by the influence of smaller surrounding homes.

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