Establishing the best listing price for your property is one of the most critical components of a successful sale, and also what unrepresented sellers report they struggle with the most. Bridging the gap between what buyers are willing to pay for the home in its current condition and what sellers want to net isn’t always easy. Among the many value adds of having a professional on your side, is having a clear perspective on local market data and being able to make an informed decision based on your unique goals. This spring The Home Sweet Heidi Team, of our North Hills office, partnered with sellers to evaluate their options, develop a game plan and ultimately get their house under contract for $25,000 more than local agents recommended it could sell for based on the initial market analysis. Let’s follow their journey--
"It’s not rocket science. Let me say it a little louder for the ones in the back, IT’S NOT ROCKET SCIENCE. It just takes time and research.”
Back in February, I was invited to price the home of someone who works in my kids pediatric office. When I arrived, I saw what every Realtor dreads, folders of other Realtors who have previously met with the seller. I knew I had to separate myself from these fellow top producers but how?
I put myself in the my sellers position: what do they want the most?Answer: the home sold for top dollar.
I put myself in the buyers position: what does that buyer expect at this price point?
Answer: upgraded home with approachable floorpan & lot
How can I make the price and upgrades match which would cause a buyer to make an offer?
The home was built in a small North Raleigh subdivision back in 2003. The other Realtors told the sellers to price the home at $465,000-$475,000 which my research also showed. I spent hours on the MLS looking for a story to see if we could list it for more and what buyers at a higher price point expected in that part of town.
$500,000. It was a stretch but we could do it if the sellers would consider my recommendations. I consulted with a local appraiser to assure that the money was being placed in the places with the highest appraisal return on investment. I gave the sellers two checklists, one was for listing it at $475,000 which included the typical power washing and fresh mulch and the other was for listing at $500,000 and installing granite, updating paint color, fixing window seals, etc. “If you’re going to list for $500,000, you have to act like you’re $500,000”, I told the sellers. The sellers did it all and we listed for $500,000 and we are now officially under contract.
The appraiser told me that if you renovate a kitchen or master bath, the appraised value will be about 1/2 the price of the renovation. So renovate because you will enjoy it as the owner, don’t renovate to max out your ROI. Historically speaking, changing carpets to hardwoods, updated fixtures, updating counters to granite/quartz and fresh paint provide the highest impact for value. Also, according to this appraiser, most appraisers will not give a dollar value based on type of hardwood or level of stone countertop so don’t splurge on the Brazilian cherry hardwoods of install carrera marble counters unless if you love it for YOU.”