Fort Leonard Wood Real Estate - 1 Million $ Sell
My Realtor® said he would list my home for 1 Million Dollars
Did your Realtor® tell you what you wanted to hear to get your business or tell you what you needed to hear to sell your home? This answer affects how long your home sits on the market or if it sells at all. Unfortunately, the below scenario happens too often in the real estate world.
Mr. and Ms. Johnny Homeowner got military orders and decided to sell their 3 bedrooms, 2 ½ (3 bath) home. They begin the process by finding a Realtor® to determine what price their home could sell for. The Realtor® ask them, “what do you want to list it for?” Mr. and Mrs. Johnny Homeowner tells the Realtor® “I’d like to get at least $169,900 for our home.” The Realtor® says “OK I’ll list it for $169,900”.
Mr. and Ms. Homeowner then call me and ask, “how much can you sell my home for?” I do a market analysis and tell Mr. and Ms. Homeowner that I would list your home between $155,000 and $159,900 but need to come and view your home to get more specific with my analysis. I may recommend a higher price or lower price once I view your home. Mr. and Ms. Homeowner tell me, “the first Realtor® I spoke to, said they would list my home for $169,900 so I am going to list with them.”
Mr. and Ms. Homeowner list their home with the other Realtor® for $169,900. After 120 days on the market with no offers or showings they lower the price of their home to $159,900. Buyers start to show up and they get an offer within a week. Mr. and Ms. Homeowner wasted 120 days listing their home “above market” price. If their mortgage was $1200 a month they spent $4800 in mortgage payments, they did not have to spend. The Realtor® took their business knowing they would lower their price in a few months. Military members must move when they get orders so they can only afford two homes in two places for so long. This scenario is real and I have seen it happen more than once in my 11-year real estate career in the Fort Leonard Wood Market.
If your REALTOR completes a simple analysis, like the chart below, it will give you a starting point to price your home correctly. Let’s go through this process on Mr. and Ms. Homeowners home in the above scenario.
The Homeowners had a 3 Bedroom, 3 Bath (or 2 ½ Bath) home in the Waynesville School District with roughly 1800+ square feet. The chart below was developed from the Pulaski County Board of Realtors® Multiple Listing Service (MLS) and includes only homes on the market in the Waynesville School District (where their home is). This quick query shows the average sales price of $155,900 and it will take an average of 156 days (DOM) before it sells.
After this first step, your Realtor® should consider the following to get a more accurate selling price for your home;
Square Foot Adjustment: Is your home larger or smaller than the other 3 Bedroom homes?
Location: Is your road paved? What is the appearance of the neighborhood? Yes, your neighbors can impact your sales price.
Upgrades: Do you have granite counter-tops, extended deck, fenced in yard, covered deck, tile or linoleum?
Curb appeal: Do you have weeds or grass? Is there any landscaping? Does your siding need pressure washed?
The first 3 weeks your home is on the market it gets the most attention. After that time period it gets "market stagnation" and hurts your negotiating position when you do get an offer. Find a Realtor® that tells you what you “need to hear” not what you “want to hear”. If a Realtor® tells you they can sell your home for 1 Million Dollars have them show you before you waste months on the market with no showings. Find a Realtor® that tell you the “facts” up front. If now is not the right time to sell, then put your home in the rental market until the market balances out in your favor but make your Realtor® do the analysis so you can make an informed decision. There is no “guarantee” your home will sell in any real estate market but, if you decide to list your home with the highest price Realtor® ensure they show you how they came up with that price.
David Holbrook has been in the real estate business for over 10 years and was the top selling agent in Pulaski County for 3 straight years. His 30 years of Government Service gives him an edge over other Realtors® in the military market. Follow the process and stay informed by contacting Dave for a proper analysis of your home. Contact Dave and Save!