Selling Your Home
in Dallas - Fort Worth Texas ( Nerd Edition )
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Our expert real estate agents work with you to determine the price, formulate a marketing plan, and assist you with the required paperwork. Our expert real estate agents monitor feedback from showing appointments, facilitate offers while analyzing market activity, procure and negotiate offers, and coordinate repairs if needed. Our listing department partners with our agents to make sure your home gets placed on the MLS with an accurate and enticing description of your home. Our agents are also backed by the closing department to get you to the closing table, working closely with the attorney’s office, buyer’s agent and lender to ensure that you have the most up-to-date information on your file.
We begin with a full evaluation of your home by one of our expert listing agents. Our agents are trained to analyze market conditions, compare properties, and decipher neighborhood intangibles to determine the value of your home in today’s market. We then consider how homes are selling in your city, neighborhood and your neighborhood's sub-areas.
Pricing your home is one of the many important elements to achieve a good solid sale. Buyers who have been researching homes on the internet and touring homes of interest are very savvy. They know values and will select a home based on comparison to others on the market. The price you choose must be relative to what other homes on the market can be purchased for. Sellers must understand that the value of their home must be justified, not just by your agent, but by the buyer, the appraiser and finally the lender. Pricing a home outside of the realm of reality will cause the home to stay on the market longer and become what Realtors call, “shop worn”.
Factors That Influence The Price Of Your Home
- Location of your Property
- The Condition of your Property
- Condition of the market
Ideally, finding 3 homes identical to your home, that sold very recently in your neighborhood, on similar lots with similar improvements and upgrades would be a “perfect” comparison for your home. Of course this only happens in a perfect world. Instead, we look for homes that are as close to size, condition, age and location as your home. Sales that are no older than 6 months are good. If nothing has sold in 6 months, we go to a similar neighborhood to see if we can find at least 3 properties that will compare to your home.
The Condition Of Your Property
Condition can make or break a sale. The Colorado Purchase Agreement allows time for the buyer to do inspections. Savvy buyers hire professional home inspectors to come in and look over your home. If the furnace has not been maintained, or the roof is in poor shape, it will be discovered. If your property is not in good condition, you can either fix it or adjust the price accordingly.
Improvements/updating:Improvements are additional features in a home: expanded deck/patios, finished basements, special landscaping. Updating in older homes consists of all sorts of things: kitchen cabinet replacements, bathrooms, even the sewer line to the street can be considered “updated”.
The Market Condition
How many homes are in direct competition with your home? The lower this number is, the better it is for the price of your home. If you are competing with new home construction or resales in the area, you will have to consider that the buyers are looking at all of these. Your home is part of the inventory on the market and will need to compare to these properties.
Taking the above factors into consideration, we will prepare a “comparative market analysis” or “broker’s price opinion”. We examine your property and compare it to both homes currently on the market (competition) and homes that have recently sold (comps).
Who Determines The Value?
The current market determines the value of your home.
Who sets the price on my home?You the owner are in charge of setting the price. Your decision should be based on solid, facts and figures provided by your Realtor. Sellers should always be very careful not to select a listing agent based on their “estimate of value”. A good Realtor should be chosen based on reputation, service and the proven success of their marketing plan. Realtors do not control the market.
Use Caution When Pricing
Properties that are competitively priced generally encourage reasonable offers, fair negotiations and a smooth closing. When your property goes on the market, there will be a “flurry” of activity. This activity comes from the buyers that have been patiently waiting for a new property to come on the market. Generally, these are the same buyers who have been looking at all of your competition. If your home appears on the market, all pretty and priced competitively, you stand a very good chance of selling quickly.
Sometimes sellers feel they need to “over-price” their property. This is based on the thought that “we can always lower our price”. This strategy can also work against you. Many buyers are willing to do some negotiations, they are truly embarrassed and unwilling to even look at properties too far above their price range. If a seller uses the ‘price it high strategy’ and decides later to reduce the price, the “current days on the market” number is shown in the property listing in the Multiple Listing Service (MLS). Properties with a high number on the MLS have a tendency to be over looked. Agents prefer to show the newest homes on the market first. This assumption is based on the theory that if a home is not sold quickly something is wrong with it! Homes that are listed for a long time are harder to sell.
Overpricing your home will cost you in terms of money, disappointment, missed opportunities and time.
Consider Going for the “Auction Effect”When a home is priced “right” for the market, buyers get involved quickly. Sometimes multiple buyers get excited about a home and will bid the price up. Suddenly the seller has a competitive edge and can gain more than they originally thought. If you are willing to set a competitive price, you may be amazed at the number of buyers it can produce.
The LivingWell Team, Realtors has offered this advice to assist you in the process of determining a price for your home. Why not let us help you sell your home?
Accurately estimating your home’s value can be just as much of an art as it is a science. More than just beds, baths and square footage, an accurate value analysis must incorporate dozens of variables into each calculation. However, if you are in a hurry you can request a comparative market analysis (CMA) or get an instant home price or track your home's value with Homebot (this is really awesome and we pay for it).
The most common approach for estimating value, using comparable active, pending and sold homes, requires in-depth analysis of multiple properties. Factors such as lot size, house condition, upgrades, floor plan, living space, construction and location must all be taken into account.
In addition, analysis of local market trends, interest rates, distressed properties, zoning, taxes and seasonal price fluctuations must also be completed. These variables all play a huge role in what a property is worth. Currently, there is no automated tool that can account for all these factors. This is what makes hiring a professional REALTOR® with the right knowledge and experience so important.
Factors That Impact A Property's Value
There are many factors that contribute to the value of your home, some you can control, some you can’t. Below is a list of factors that play a role in what your home is ultimately worth.
These factors are based on houses intended for owner occupants, and do not reflect highest and best use value (such as a developer re-zoning real estate for another type of use).
Comparable Property Sales: The sale price of comparable homes in your area is typically the biggest indicator of what your house is worth. Recent real estate sales show what buyers are willing to pay for area homes, and more importantly, what appraisers determine those houses are actually worth. When evaluating comparable sales, adjustments are made to compensate for differences in amenities, features, size and more. Simply look and see what other houses may have that yours doesn’t, and vice versa.
Home Size / Upgrades / Condition: Living space is a basic measure in which most houses are compared, and what an appraiser will base much of their calculations on. A home that is appropriately sized for the neighborhood (conforming with other houses) will be on par with the real estate around it, but one too large with extensive upgrades can get priced out of a neighborhood and lose value based on the surrounding properties. Naturally, homes with superior upgrades that are in pristine condition, tend to sell for a higher price per sq/ft than similarly sized houses with no upgrades, or in poor condition.
Schools: The quality of public schools in your zoned school district is also a huge component of your home's value. Every parent wants what is best for their child, so access to a top notch education seems to always top the list for buyers with children. Even buyers without children recognize the value of a quality education system when it comes to the resale value of a home.
Location: Here in Atlanta, like many other metro areas, location is a key selling point for many buyers because it can greatly impact their quality of life. Access to parks, shopping, dining and entertainment can be a huge selling point and impact what buyers are willing to pay for a property. Homes in popular locations tend to have higher demand and usually sell quicker, which helps maintain values and spur price appreciation.
Neighborhood: The appearance of a neighborhood can greatly impact a buyer’s perception of your home and what they may be willing to pay for it, even before they’ve stepped foot in the front door. A safe and well maintained neighborhood will invite buyers right in, while a dangerous and unkept neighborhood will have them looking for the quickest road out. A neighborhood in decline will drive values down, while a prosperous neighborhood can cause prices to increase.
Lot Size & Type: The lot your house sits on does play a role in what your home is ultimately worth. Generally speaking, the bigger the better, but not always. Homes on flat lots that are private, well landscaped, waterfront, or with other views tend to command a higher selling price than those on an extreme slope, backing up to power lines or major highways, or highly exposed.
Important Report Disclaimer
Home value reports contain data and information that is publicly available and/or licensed from third parties and is provided to you on an "as is" and "as available" basis. The information is not verified or guaranteed by MetroAtlantaHome.com or our real estate agents. Neither the report nor the estimated value of a property is an appraisal of the property.
Any valuation shown in the report has been generated by use of proprietary computer software that assembles publicly available real estate records and certain proprietary data to arrive at an approximate estimate of a property's value. LivingWell Properties and its information providers shall not be liable for any claim or loss resulting from the content of, or errors or omissions in, the information contained in the report.
In the state of Texas you can typically expect to pay 7%-9% in fees to sell your home. Some fees are fixed and some will vary. Many of the fees are percentages based on the sales price of the home. Every home seller really needs to know exactly what the sale will cost them, so we always prepare a net sheet for our clients. The net sheet will list every fee, expense or cost associate with the sale of your home, detail who receives the money and how much they receive. We want to make sure you know where every dollar goes.
The Typical Fees
- Mortgage balance
- Prepayment penalty (if exists)
- Title Insurance
- Taxes (in Texas Taxes are paid in arrears)
- Transfer tax (is applicable)
- Prorated items such as: HOA, water/sewer
- Contract items as per negotiation; buyer's fees, appraisal, transfer fees, HOA etc.
- Real Estate Brokerage Fees
- Home Warranty