Increasing the Net Sales price of your home in 2010
Additionally, the $8,000 tax credit and near-record low interest rates brought the buyers out of the woodwork in mid-year, and created a flurry of buying opportunities that lasted until recently. The new tax credit offered by President Barack Oama, which includes rebates for non “first-time buyers,” is just now taking hold and it appears that this winter may actually be a busy time for home buyers and sellers alike.
The obvious adjustment in pricing has had a large impact on homeowners throughout the region, and even though the effect is negligible in the case of folks that are making lateral moves or upgrading (because the home they’re moving to has been impacted as much or more), it is at times like this that maximizing the sales price of their current property becomes all the more important.
One of the easiest and most obvious ways to increase your net profit is to sell your home for a higher price. So often I see homes in our area put on the market thousands of dollars too low. In most cases, low-balling the price is the last thing you want to do – especially in this market.
Giving the feeling to the buyer public that you’re desperate can only lead to less money in your hands. Establishing “Fair Market Value” in unusual market conditions such as these can be very difficult.
In the past, we relied on detailed reports of “previous comparable sales” in the neighborhood. Nowadays, however, the fact that the home across the street sold for $450,000 a month ago, is less relevant, when compared to the rapid fluctuations in what buyers are willing to pay based on supply and demand issues.
Needless to say, pricing the home based solely on “past sales” can shortchange the seller. I saw one recent property that could easily have sold for an additional $25,000 if they’d priced it properly from the beginning.
The second way to increase your net price on the home is to decrease the amount of extraneous expenditures involved in the sale. Brokerage commissions are probably the largest single expense involved in the selling of a home, so it’s vitally important to make sure that you get the best possible value out of it.
Just as important as “not overpaying,” however, is not to skimp, not to hire just any agent who would work for a couple of dollars less, and who’s “true” marketing plan calls for “dumping it in MLS and praying for a sale.” Over the last year especially, it’s become even more important to look at the ancillary marketing services that are being provided, and make sure to find the best balance between aggressive marketing, affordability, creative thinking, and experience.
One obvious solution would be programs like the “Homeowners Blend,” which can reduce the commission on the sale of someone’s home by as much as 50 percent, while still (and this is vital), providing the same full and complete service and advertising that you deserve.
This truly works wonders, as so many will attest. I recently saw two sellers who’s homes both sold in under a day, and who paid only a 2.5 percent TOTAL fee, saving in one case more than $7,000.
I put together a video that you might want to check out, In the video there are interviews with several home sellers who sold their homes using this program. As a result of using the program, they received offers over the asking price, in a day, and saved thousands of dollars in fees. Check out the video by logging on to the Shrewsbury Lantern website, www.shrewsbury.net. The link for the video is in the bottom right corner. It truly has been the best program I’ve ever seen in my career, and people who’ve taken advantage of it have been floored by the results.
In any case, when dealing with such life-changing things as selling your home, you need to take the proper precautions. That doesn’t mean “giving your money away,” but it also doesn’t mean trying to remove your own spleen to try and save on surgical bills. The key here is to make sure you have the best agent for the job, but at a fair price that you both can live with.
Remember, an agent working for too low a fee has little incentive to sell the property, and could just as easily be using it to bait and switch buyers to other homes.
Steve Levine, president of Steve Levine Inc., was recently named the No. 1 single RE/ MAX Agent in New England, and one of the Top 40 individual REMAX agents in the world! He was also named the No. 1 Single Agent at REMAX First Choice, and can be reached 24 hours a day, 7 days a week at (508) 845-HOME or on line at www. stevelevine.com. You can also access the MLS database for all of Massachusetts at www.massachusettsmultiplelistings. com.
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