It starts with a call from an eager potential seller. The next step is for me to meet with them, and in all confidence find out as much as possible about the home and their future plans.
I ask a lot of questions, take notes, a few photos (not for publication) and most of all “listen”.
A sellers common and understandable expectation, especially if they’ve purchase the home in the last 5 years is as follows:
“What I paid + what I spent vs what the neighbors house sold for = my selling price”
I wish it were that simple.
As a REALTOR® my first step, after meeting the home owners and the house is to sit down at the computer and begin the research.
Location: Find properties to compare in the same area
Style: Find properties to compare that are similar to the house being evaluated (2 story vs 2 story)
Condition: comparable homes should be in similar condition to the subject home
Sold Homes : Your primary statistics will come from recent sold data (not from 3 years ago) depicting what a buyer is willing to pay for a property similar to yours in todays market.
Current Listings: We will review your competition and if needed strategically place the home given the results
however “list” prices are not a measure for a selling price. They are a “want to get” price, not based on what a buyer is willing to pay.
Once comparable homes are found then it’s time for me to sharpen the pencil and review each one, making adjustments if needed. Adjustments are commonly for things like a garage. If a home has sold nearby and didn’t have a garage while the subject home does have a garage we’ll speculate that home could have fetched $20,000 more and add that to its price for comparable sake. Make sense?
I have been privileged to meet some great home owners recently who have done incredible work on their home. The last thing I want to do is tell them their house will fetch less than what they expect. However, it’s my duty to show and explain the data, along with the market price based on that. Are their expectations impossible? Absolutely not (within reason).
We’ll roll up our sleeves, get the property ready with staging, presentation, the best photos, market it out of the park and see what a buyer is willing to pay for the home.
My advice? I’d love to say “Contact an agent before you start all of your renovations”. Trouble is 95% of these home owners didn’t plan on moving. They made their reno choices based on sensibilities and their needs. So we’ll skip that piece of advice albeit ideal.
Find an agent you click with, check their references and get to work. If you want top dollar you need to be 100% ready. That dollar may not be what you paid (price + renos) however if you show up to the dance as a knock out you’ll capture the best and highest dollar the market is willing to pay.
Have a great day!