The Honest Truth about Your Home’s List Price

sebfreyCommentary

Watch this Video First I want to be brutally honest with you about something that’s going to be very important to know, should you decide to put your home up for sale. It’s about the price that you choose to put your home on the market for. I want to give you the honest truth about your home’s list price. Ready? Here it is: in most cases, your home’s list price actually has little to do with what your home is going to sell for. In reality, your home’s list price is actually all about your marketing strategy. When deciding on a list price, one of the key questions you want to ask yourself is, “How long do I want my home to be on the market?” It is perhaps not surprising to hear that the higher the initial listing price (relative to competing properties for sale in your market), the longer you can expect it will take for your home to sell. Sales statistics show that the longer your home sits on the market, there is an increasing likelihood that your home will sell for less than list price, and that typically, the longer it sits, the greater the “discount” off list price. It’s a hard way to learn that you’ve overpriced your home. Funnily enough, sales statistics also show that the opposite is true: when homes sell quickly, they often sell at full asking price, and in our market, they commonly sell for a healthy premium over asking price. So when it comes to … Read More

The Dirty Truth about Home Price Valuations

sebfreyCommentary

The Dirty Truth about Home Price Valuations

The Internet is swimming in offers for free, instant home price valuations. They’re all over Google search results, Facebook, Craigslist, and just about every Realtor web site. You can look up a home’s value on Zillow, eppraisal.com, and thousands of other sites which promise instant, online and accurate real estate valuations. But the truth is, there’s much more to know about your home’s value than you can get in any home price valuation. I’m here to tell you the dirty truth about home price valuations. I have performed literally thousands of home price valuations (aka CMA, or Comparative Market Analysis) over the years I’ve been a real estate broker. I’ve done them for all kind of properties, and in all kinds of markets. I’ve done exterior-only, full interior valuations, value estimates for mobile homes, commercial property and raw land valuations – the works! I feel very comfortable valuing property, and I think I do a pretty good job of it. But here’s the dirty truth about home price valuations: your home is not worth any one particular price. Rather, it is worth something within a range of prices, and could sell anywhere within that range. If anyone could reliably and consistently tell you exactly how much any particular property would sell for at a particular point in time, that person would be fabulously wealthy. It’s tantamount to having a crystal ball and being able to accurately prophecy the future. You see, a home price valuation is based on a whole series of assumptions about the state of … Read More

Multiple Offers on Santa Cruz Real Estate

Seb FreySanta Cruz Real Estate

I guess a lot of people think it doesn’t happen very often, what with the fact that we’re in a terrible housing crisis and property values are falling down all around us, kind of like federal tax dollars raining down in Alaska . … If you are interested in putting in an offer on a house, and you find that the seller of that house has attracted several offers in a short number of days, what should your offer strategy be? … Choice C is definitely the way to go when making an offer on a house that has received multiple offers in a short period of time. The reason for this is that, if there are more than, say, 2-3 offers on the property, it is likely that it will go for over asking price .