price

Home Pricing 101

Mario AvalosLeave a comment

custom made mailboxBuyers determine value by what’s called comparison shopping. In essence, buyers look at two prime elements when shopping  for a property:

  1. Value…or particulars a home offers a buyer such as a having or not having a pool, tiled roof, hurricane shutters, etc…and
  2. Price

Then, a buyers compares these two elements against other similar properties in the immediate neighborhood to make a decision what gives them the most value for the price.  Hiring the right agent to assess the value of  a property is pivotal, perhaps even more than advertising and client service.  Not having the right price on a home can mean the difference between a property selling in 30 to 60 days as opposed to not selling at all.

Keep in mind that pricing a home is an art. There is no formula. So…during a listing presentation, ask your agent…”how do you calculate the price”. If it makes sense, hire them. if it does not, move on. If the logic makes sense, great. If it does not…ask questions. An agent that knows what they are doing will answer all your questions with confidence and ease regardless of how much you may or may not like what you are listening too.

Yes…look out for confidence and ease. Why? The price of your home is created by market forces, not an agent. If we had that kind of power, we would be sipping margaritas in Tahiti on our private island. Since we have no control over price, we are merely the messengers of this data.

And because of this notion, there is no reason why a real estate should not be confident and at ease when delivering the price.  Any lack of the latter means two things: the agent is not telling the truth in order to get the listing OR they are not sure how they derived your home price.

Prices Up. Show Me The Money!

Image Mario AvalosLeave a comment

budildings in kendall

A combination of almost no available inventory due to sellers holding on to the fence and foreclosed homes not hitting the market at expected rates is creating a nice upward price-ride for home sellers. Price a property 5% to 10% above fair market value based on sold comparable during last 6 months and it will sell. Obviously, choosing the comps are key to determining the correct floor to set the price. So…if there no inventory, buyers are getting loans and have the cash to close them…where’s the bump in the road?  Appraisals.

Appraisals continue to be the itch in a healing wound. If they was only a science to calculating price across the board, life would rock. But it’s not a science. Unfortunately its an art. Yes…Zillow is good at getting close to giving an idea of what is a house is worth, but not great. Mind you…I am a fan of them. But this is not about Zillow or the appraisers. This is about an industry that is picking up at a pace no one ever saw coming.

Critics. Say what you want. This is a phase. This is temporary. Who cares. Even if it is. Its a step int the right direction. Its positive news. And we will take it any day of the week. Based on numbers, I don’t think this is temporary. At least not in Miami Dade County considering that at this point in time there is only a 4-month supply of inventory across single family homes, townhouses and condos. Yes. Condos. I know. I can’t believe it either. Don’t believe me? Put you property for sale at the right price (just for cracks and giggles), and you will see offers (plural) lining out the door. And that goes for ugly homes too.