Blog, For Sellers, Guides
Selling in Today’s Market: Numbers, Numbers, Numbers
Posted 1 year ago by Mark Cheng · Leave a Comment
In today’s market, it’s essential to know not only your numbers but the numbers of the neighborhood homes that have just sold. Make sure you hire a local agent who’s been in these homes and understands why the comparable properties sold for the prices they sold for. If you or your agent don’t have this information, you’ll be at a disadvantage because the buyers will.
Pricing Strategy Makes a Difference
Pricing your home correctly in today’s market is more essential than ever. If you price off a dream number, you may end up spending a lot of time on the market, hurting your chances of selling now, hurting your chances of selling later, and you’ll base your move off something that may not really work financially or logistically. No one wants to spend 6 months on the market only to realize at the end that the realistic market price means no down payment for the next home.
A real estate professional who will tell you the truth about your price, chances of selling, and possible hurdles of selling under current market conditions is doing his job. I see situations all the time where an agent will list a home too high for fear of disappointing the owner and after months and months, the home fails to sell and the owners give up on their dream. Hire a true professional who will be honest from the start so you can make the appropriate adjustments right from the beginning.
Knowing the Reasons Behind the Numbers
As you may know, appraisers, real estate professionals, and especially buyers often use price per square foot to determine the value of a home. This number is one of the most important numbers that will show up on internet sites, flyer print outs, and on the multiple listing service. BUT it’s not everything.
This is where the local expert comes in. Hiring a local expert who is fully involved in the business every single day means that he has probably seen most of the homes on the market. He would know that the Smith house down the street only sold for $310 per square foot because the living room was only 8 feet wide, and that yours might be worth $350 per square foot because you have a brighter, more open floor plan. Buyers will come in and try to mention properties that aren’t comparable to try to negotiate your price down, but the professional will be able to handle those situations because they simply know the market.
Your Bottom Line: What are the Costs to Sell
Typical closing costs for sellers include real estate commissions, escrow fees, title fees, termite work, transfer taxes, and a 1 year home warranty for the buyers. A good way to estimate it is to budget 7% of your projected selling price towards closings costs. Lastly, deduct the loans and estimated capital gains taxes to get your proceeds from the sale that you can save or put towards your new home.
How can you make sure to maximize your sales price and increase your bottom line?
Next: Maximize Your Price: It starts before you even get an offer
Previous: Deciding to Sell: What should I consider? What are my options?
Table of Contents: Mark’s Selling Guide
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I am an experienced Southern California real estate professional helping clients purchase and sell San Gabriel Valley homes. I specialize in the cities of Arcadia, Temple City, San Marino, San Gabriel, South Pasadena, Pasadena, and the surrounding area.