What is my home worth?

TGIF.  I know you are all excited it's Friday and despite our slight cool down here in the Palmetto State and in Summerville I'm sure many of you are out and about enjoying the sunshine. Today, I thought I'd discuss home values. Home values are the one thing I encounter as a Realtor that start arguments.  Husbands and wives disagree, agents and clients disagree and sellers/buyers disagree.  Because of the opportunity for all these disagreements it's imperative you have a good agent that knows how to properly price your home based on Market Value. Recently, I saw a FSBO (For Sale By Owner) home on the market and I realized it was priced $50K over the market and I realized this by checking the comps (comparisons or other nearby similar homes that sold recently). 

So, what truly creates the value of your home? There are 5 things in particular that establish a list price and believe me when I tell you we (Realtors) don't just guess on this.  It takes time and experience to do this properly and a solid understanding of the market. You should ask your agent, before hiring, "Have you ever sold a home around here?"  Market knowledge is crucial.

5 Things that establish Value:

1. Recent Sales - these are the comps I mentioned. If you price your home too high it probabbly will not appraise and you're back to market value.  Appraisers will go back 90 days for a comp and if there aren't any they'll go back 6 months. 

2. Location-  We've all heard Location, Location, Location.

3. Condition - Buyers will immediatly compare your home to the past 5 they've seen and guess what.  If  your home is not clean, up to date, has too much stuff, not staged and the 3 of the other homes were guess where they're going?  Last year I had one house that never sold and it still haunts me and I know it's because of condition. The owners were very nice but did not want to listen to me when I told them they have too much stuff and it needed all new flooring.  I honestly believe if they would have followed my advice it would have sold.

4. Competition - This goes with the condition. Think about it - if there are 4 homes for sale on your street we're going to have to price it differently than if you are the only home listed.

5. Timing - The market will dictate price and I do not dictate the market. I read the market, I understand it and I pass that information on to you but I do not establish market value. and neither do you.

Research shows you have 15 seconds to impress a buyer or they move on without a second thought. Think about that....15 seconds from the moment they walk on your property and in your house. This means you better make a great first impression. Next time I'll talk about how to make that great first impression.

As Always, I'd love your business or your referrals.

Jason Gregg, Realtor
843.696.8627
Jason.Gregg@kw.com