Source: Greater Fairfield County CMLS, HOUSES Sold = Single Family, Multi-Family, Condo/Co-Op
I found this video on CNN yesterday and thought it was very cool.
What we Americans want in a house has really changed in the last 40 years and so have housing prices!
Take a look…
Math can help sell a house? Let me demonstrate how this equation works…
If you don’t a have a great location, then you HAVE to have good condition and a good price.
If you don’t have a great location OR good condition, you MUST have an UNBELIEVABLE price.
If you do have a great location BUT you don’t have good condition, you MUST have a good price.
See what I am doing here?
If one of the variables (location, condition or price) of your “sale equation” isn’t great, then the other variables have to work MUCH harder than they normally would if all the variables were equal.
None of this is rocket science and I know that. As a matter of fact, you should have mentally said “duh” after you read my last sentence.
Why do I bring this up?
Because time and time again, this notion of adjusting “variables in the sales equation”, gets completely forgotten when someone is selling their OWN home.
I am currently working with a client who is looking for an investment property. This week alone, she lost out in bidding wars on three different properties.
In discussing it with my husband, he noted that the three properties where in VERY different locations and were at VERY different price points (the least expensive house was $585,000 and the most was almost $700,000) and all were in varying degrees of condition.
YET, I explained to him, they all had one thing in common…the variables of their individual “sales equations” were perfectly balanced. All of the houses offered the correct value, given their condition and their locations.
All the houses my client bid on had MULTIPLE offers within 48 hours. As a matter of fact, there was one house we didn’t even bid on because it had several offers before I could even schedule an appointment for her to see it.
Now, admittedly, any house priced below $1,000,000 in my town, is considered “inexpensive” [yes, I understand that most people in other parts of the country will read this and think this is crazy...I think it's crazy...but it is what it is].
To prove my point, I’d like to note that there are a few other houses available in my town at these same price points and they are sitting with no sales.
They have not balanced the variables in their sales equation appropriately.
So, if you are going to list your house this spring, take a very HONEST look at the variables of your sales equation. Make sure they are balanced and you should have a sale.
As I mentioned in another post, my family and I were out and about a couple of weekends ago and we found ourselves in Middlebury, CT.
We happened upon a road where one house was more lovely than the next and I spied several unique front doors.
Check out this colorful door!
I copied the picture from my other blog Front Door Freak…thus the weird watermark on the picture
Somehow, we got onto the topic of the Realtor who sold my friend’s last house (she recently moved to my town from another state).
She mentioned that she felt like she “fell for” her Realtor’s sales pitch.
Her Realtor was a top producer in her area. Her sale signs were all over town. This Realtor said that by signing with her, my friend would be guaranteed a lot of hands-on service since this Realtor had a whole team of agents under her that would tend to my friend’s needs AND she’d be guaranteed a lot of buyer foot traffic. Because the Realtor and her team had so many listings, they met a lot of buyers shopping for homes. She guaranteed a steady stream of buyers coming to see the house.
It all seemed to make sense to my friend and she signed up with this Realtor.
After several months, she found she had barely spoken to the Realtor (or anyone on the team) because they were very busy running their “big” business. She also noted that the Realtors actually showing her house were predominantly from OTHER companies and NOT this agent or her team.
She said in retrospect, she wished she had gone with someone who handles all their clients themselves. She said she felt like she got “lost in the shuffle” of this big team.
So, if you are listing your house, give serious consideration to the type of Realtor service you prefer…well-known around town or smaller and focused on you.
Only you can decide which option is best for you.
Every three years the Federal Reserve conducts a Survey of Consumer Finances in which they collect data across all economic and social groups.
One of the facts that came out of the study was a bit startling…
It seems that over 61% of an average American family’s net worth is in their home equity. That attributes to the disparity between owners and renters net worth.
To all the renters out there…perhaps it’s worth speaking with a mortgage professional to see if you can buy.