Welcome to “At Home With Heidi & Sandy.” We are going to give you some marketing and housing stats this month and some tips for pricing your home to sell. Settle in, enjoy and be happy the housing market is good.
Sandy: Heidi, with winter and the holidays approaching, buyers are typically not looking to move this time of the year, are they?
Heidi: In some parts of the county, realtors do see a decrease in activity when temperatures drop below freezing; however, in the Prescott region, as realtors say, there are only two seasons: Winter and Summer, meaning in the Spring/Summer we have buyers the warmer climates moving to the region to escape the heat and in the Fall/Winter we see people from the colder climates relocating to enjoy our mild four seasons.
Sandy: If that is the case, no wonder we have a constant flow of folks and families looking to upgrade, remodel, expand and build new homes in the area.
Heidi: As a local realtor, I find that most of our region moves are due to families seeking a mild four seasons climate and/or health-related changes. Our region is one of the great places in the U.S. to live and the housing stats are indicating there is good movement.
Sandy: Livability indicates that climate is an important consideration for people when choosing where to relocate. Our area boasts plenty of job opportunities, great schools, safe streets, low crime, lots to do, charm and other features that make living in the region great for raising a family.
Heidi: Another reason why some people move is family expansion. Our area is conducive to multi-generational living. Whatever the reasons are, people are progressively choosing to move to a new place and house every day.
Heidi: We have printed some stats as of September 2016, which indicate the change in median price from when the home was purchased and the stats for all sales as recorded in the Prescott MLS.
Sandy: Also included in this column are the building permit stats for single family new homes in Prescott, Prescott Valley and unincorporated Yavapai County/Prescott area from January 2016 through September 2016 and combined numbers for 2015. As you can see, we are on an uptick.
Heidi: With moving/relocation taking place, buyers are educated and do most of their research online, prior to even contacting me. Almost all – 92 percent – of home buyers do research online.
Sandy: Heidi, how do you and sellers agree on the sales price?
Heidi: Home pricing is more of a science than an art, but many homeowners price with their heartstrings instead of the hard facts. And here is why crunching the numbers is always the better route to an accurate home price.
Heidi: Although you can certainly lower an inflated price later, sellers will sacrifice a lot in the process. The most obvious damage: A house that remains on the market for months can prevent a family from moving forward with their plans in a timely manner.
Sandy: So then a seller can lose a lot of time and money if their home is not priced right.
Heidi: As we know, buyers are savvy these days. In my business, it is sometimes difficult for sellers to understand actual value vs. sentimental value because they have lived and loved the time they spent in their home and it is my job to assist them with understanding the real value.
Sandy: And just as important, a seller needs to understand that renovations do not always result in a dollar-for-dollar increase in the selling price. For example, if a seller installs a few thousand dollars of new flooring, he or she might overestimate the upgrade’s impact on the home’s value vs. seeing the replaced value from the potential buyer’s perspective. Smart renovations can make a home more comfortable and functional.
Heidi: Sellers and buyers should both be leery of online home pricing tools that prescribe an estimated market value based on local data and are most often wildly inaccurate.
Sandy: So, Heidi, what is the best pricing strategy?
Heidi: Real estate professionals will use the most up-to-date and accurate comparable sales to determine the appropriate listing price. This is when we seek out similar properties/homes, similar floor plans, square footage and amenities, in the same or similar area(s) that have sold in the last few months. Once this data is collected, we can make an accurate estimate of what the home’s selling price should be. Then, we will work together to determine a fair price that will entice buyers.
Sandy: It is important to remember that this number might be less than what the seller had anticipated, but in the long run, listing your home correctly – not idealistically –is a sure way to avoid the aches and pains of a long, drawn-out listing that just won’t sell.
Heidi: There is an easy way to tell if the house is priced too high and that is if there are no showings or interest. Lots of showings and no offers indicate the home is appealing to buyers and some of the attributes of the home don’t fit the buyers’ wants or needs. My position is that I don’t want to just list your home, I WANT TO SELL YOUR HOME. QCBN
By Sandy Griffis and Heidi Marshall
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