Ann Motz
Ann Motz
CRS,CRB,GRI,ABR,SSR,CDPE
(901)461-6689
Ann Motz Realtors
892 Goodman Rd. East Ste. 4
Southaven, MS 38671
(662)349-9100

Overpricing

Overpricing

A crucial part of selling your home comes right at the outset—when you set your asking price. It boils down to a decision to go high (the I-love-this-place-and-gotta-have-it-no-matter-what price); or low, with a number that is just under neighborhood comparables (the I’d-better-snap-this-up-before-someone-else-does price).

Success in selling your home quickly is commonly understood to correspond with the lower price strategy, it’s true. But are there ever reasons why you would want to set a price that’s significantly higher than your neighborhood usually commands? Is there EVER a right time?

Although the common wisdom for selling your home is a pretty firm ‘NEVER!’—but there might be some possible exceptions. When might it be reasonable to ‘test the market’? Here are a few:

No true comparables. If you have a home that’s verifiably one of a kind in the area, comparisons based on size, number of bedrooms and baths might be misleading. In such a case, it’s important that the differences be blatant—obvious to everyone—because banks and other lenders are likely to need considerable persuading, “Comps” are easy to justify, which is why they are the usual reference points that make loan officers comfortable. But keep in mind that it’s an absolute ‘must’ for selling your home with a higher-than-comparable listing price: it’s got to be a gem!

Uniqueness. Selling your home at an elevated may be justified when it offers features that aren’t duplicated anywhere else in the area. This can be the case when the location is unique, as when the views from the living room are breathtaking, or a long driveway or dense plantings offer seclusion in an otherwise crowded neighborhood. To warrant the elevated price tag, those unique features should be easily describable in marketing materials.

No need to sell. If demand for properties in your area is intense—but you have no urgent need for selling your home right now, you might decide to list at a price that would warrant a move for financial reasons. This is the weakest reason to price high: it usually ends in wasted effort without much to show for it.

The list of reasons why overpricing is usually a terrible idea would include showings lost, appraisals that come in at lower than sale price, offers from prospective buyers discouraged, etc. The fact is, when it comes to selling your home, you’re probably looking for a speedy sale at a fair price.

If you are going to be selling your own property this season, give me a call. We can go over how your property is likely to fare in today’s market—and draw up a selling plan that will meet your goals!

First Time Home Buyers

First Time Home Buyers

The upheaval in global financial markets over the past few years may have been unnerving for almost everyone, but among the hardest-hit group was first time home buyers,and across the country. Many had to deal with the stress caused by an uncertain economy, the fallout on business and job security, and, more directly, a pronounced increase in the difficulty of securing mortgages.

The good news for first time home buyers is how the national situation has stabilized. It’s confirmed by the increase in the number of people interested in buying a home for the first time—which has climbed out of the slump. The latest NAR (National Association of Realtors®) annual Profile—a yearly report describing home buyers and sellers—shows that new entrants into the residential market accounted for 39%, just 1% shy of the pre-crash mark.

If you’re selling a home this summer and have priced it attractively, it could pay to be mindful of this important segment of our market.

So just who are first time home buyers? That’s where the NAR report gives us some important clues. Three-quarters of first time buyers across the nation fall into the category of current tenants —those living in rented accommodations—with 18% still living with parents. As you’d expect almost all (98%) of that segment hope to fund their purchase with a mortgage, with 81% preferring a fixed-rate loan. Some first time home buyers plan to use personal savings for the down payment, but many others plan to get help from family. (Home sellers take note: one possible incentive to make your listing stand out might be to include an offer to cover closing costs.)

Three-quarters of respondents were aged from 22-42. The single most common reason given for buying a home is to start a family (70%), and of those buying a home for the first time, 51% are married couples. With proportions like those, any home in a family-friendly area should benefit by pointing out attractions like local parks, playgrounds and superior schools.

Maybe the most interesting statistic in the report was that 28% of the first time home buyers were already making plans to move again within five years! It may follow that, at least in many cases, first time home buyers may not want to deal with remodeling issues. Attracting them could be the final reason to bring your property into “move-in” condition.

Well thought-out marketing is the key to success with any listing, whether it’s catering to first time home buyers or to any other segment. If you are thinking of selling your own home, a call to me and a some preliminary groundwork on a marketing plan that will work for you is definitely in order!