How to Price Your Home To Sell

inv_supply_pricesPROPER PRICING
For every property there are three prices.
The one the buyer wants to pay.
The one the seller wants to profit from.
The one the market will bear.

 

One of the hardest topics up for discussion is price. Real estate is more than a product and homes are more than furniture and dishes. They are a collection of memories and emotions. Unfortunately the emotions that home sellers attach to their property are not the factors that a disinterested buyer would attach. When pricing your home it is important to look at it as a buyer would.

What are the factors that influence price.

 

Location, Market factors, Asking Price, Condition, Presentation

 

Lets start with the two you cannot control easily. Location, location, location is one that can’t be altered. It is set in stone or concrete. Some area are better seller than others and properties by water or with a view can usually sell for more then comparable homes without. The same is true of a neglected 1950’s neighborhoods compared to a new subdivision built in the 2000’s.

 

The overall market, such as inventory, absorption rate, and interest rate can always change and effect how buyers value your home. But is out of the control of agent and seller, but must be taken into consideration when pricing a property. The 2013 real estate market in Kenai and Soldotna is about 25% better than 2012 by number of sales and prices are appreciating. At the same time interest rates are climbing and will reduce the purchasing power of buyers.

 

The seller can control the asking price, the condition both inside and out and the staging to make the home welcoming. Most sellers make the mistake of pricing their home with only the asking price without considering the condition or presentation. Any experienced agent will tell you that you need to factor in all three. A well priced home that is in good condition will take longer to sell if it is not available for showing during the evenings and weekends. A vacant home with pricing that matches it best comparable properties in it neighborhood will never sell for top dollar if the drywall is messed up and the dogs and cat have soiled the carpet.

 

Buyers have more information on homes than ever before! Most of the time they can start without an agent to guide them. When a home come into the market most of the pool buyers have already been through the existing inventory and rush in to look at the fresh inventory. When the home is correctly priced it encourages agent and buyers enthusiasm. Enthusiasm leads to showing, showings leads to a sales. After a while a home will develop a bad reputation and will turn into the ugly duck that make all the other homes look good. You don’t want to be the home that helps other homes sell.

 

The properly priced home will sell faster and ultimately for a higher price. When overpriced it take longer to sell, the longer it is on the market, the lower the sales price to list price. The market is picky so both the condition of the market and home must be considered when pricing. The market has no feeling for what you need out of the home. It will only recognize how the home fits with other homes.

 

So remember the market determine the value.

Questions On That New Kenai Home: Get A Home Inspection!

Kenai HOme Inspection 2aThe purchase of a Kenai home is expensive. Protect yourself with a home inspection. Before purchasing, it is always a good idea to have a Kenai home inspector conduct an independent and objective review of the major systems of the Kenai home. A Kenai home inspection is a visual examination of the physical structure and systems of a Kenai home, from the roof to the foundation. Having a Kenai home inspected is like giving it a physical check-up.

 

The home inspector will review the condition of the Kenai home’s heating system, interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement and visible structure.  The home inspector provides a written report on the conditions of these systems and alerts the purchaser to problems with the home so the purchaser can make an educated decision about buying the Kenai home.

 

It is always recommended that a Kenai home buyer accompany the inspector.  This allows the purchaser to observe the inspector, ask questions about the condition of the home, how its systems work, and how to maintain them.  After the purchaser has seen the property with the inspector, the written report is much easier to understand. The inspector should be available after the inspection is over for questions pertaining to the house.  A home inspection is a great way to learn about a property, helps protect a home buyer from  surprises after the purchase.

 

About The Author:
Robert Moss is a senior home inspector with Wisdom and Associates, Inc.. Robert has accumulated a wealth of knowledge with 13 years of Kenai home inspection experience. Follow Rob at google+ or email: robert@akinspections.com

 

Low Inventories Indicate a Trend : Kenai Real Estate News

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Low inventory with the Kenai Real Estate market is a relative term depending on what you compare it too. Would the comparison be to total number of Kenai homes on the market last year, homes in a certain price range or homes in a certain area? In some situations, it’s a combination of all of those things.

 

In any given market, inventories will fluctuate based on area and price range. The National Association of REALTORS® considers a balanced market to be six months’ supply of homes. If it takes longer than six months to sell, it is thought to be a buyer’s market and less than six months, a seller’s market. Most buyers and sellers probably feel inventory equilibrium is more like three month’s supply of homes.

 

Inventory has a direct impact on price. During the housing bubble, demand decreased, supply ballooned to four million houses and prices dropped dramatically. Increased inventories due to foreclosures, bank’ revised lending practices and builder’s lack of new housing starts each contributed to the dramatically lower prices.

 

As the market has recovered, economic conditions have improved, banks have loosened their requirements, interest rates have remained low, foreclosures have slowed and gradually, the inventory has been reduced to approximately two million houses. When demand is constant but inventory is reduced, price tends to increase because the same number of people are trying to buy a smaller than normal number of homes.

 

Based on the low mortgage rates that have been inching up each week in 2013 and an improving consumer confidence level, most markets are experiencing some increase in demand. With inventory decreasing, buyers in the marketplace can see that prices are increasing.

 

Just as signs of spring can be seen to be just around the corner, it should be recognized what direction prices will be moving. Hindsight is 20/20 but we can’t purchase or sell in the past. We need to make decisions today on what we think will happen in the future.

 

 

If you’re curious to know what inventory conditions are for your specific market, send an email to me at with the price range and area and I’ll send you a report.

January Pending Home Sales Up in All Regions

From National Association Of Realtors via realtor.org: WASHINGTON (February 27, 2013) – Pending home sales rose in January, and have been above year-ago levels for the past 21 months, according to the National Association of Realtors®. There were healthy monthly gains in all regions but the West, which is constrained by limited inventory but was slightly improved.


The Pending Home Sales Index,* a forward-looking indicator based on contract signings, increased 4.5 percent to 105.9 in January from a downwardly revised 101.3 in December and is 9.5 percent above January 2012 when it was 96.7. The data reflect contracts but not closings.

The January index is the highest reading since April 2010 when it hit 110.9, just before the deadline for the home buyer tax credit. Aside from spikes induced by the tax credits, the last time there was a higher reading was in February 2007 when it reached 107.9.

 

For the complete article click here.

Replacing Your Front Door Can Pay For Itself!

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Interested in improving your Kenai home’s drive-up appeal, increase its security and add energy efficiency. Consider replacing your front door, it can pay for itself by increasing your Kenai real estate’s value, according to Remodeling magazine’s annual Cost vs. Value Report.

 

Think about making a change?

 

Read more: http://www.houselogic.com/home-advice/windows-doors/exterior-door-installation-options/#ixzz2MECGYorW

Refinancing Again

2012_avg_frmWe’re constantly bombarded by lenders to refinance our Kenai Real Estate under a variety of programs. The volume of offers can almost make you numb to the rational consideration.

 

There are common rules of thumbs that homeowners and agents use such as not refinancing more often than every two years or there must be at least 2% savings from your previous mortgage rate may not always be accurate.

 

The reality is that if you can refinance for a lower rate and you’ll be in the home long enough to recapture the cost of refinancing, it should be considered. The costs of previous refinancing that haven’t been recaptured by monthly savings may need to be added to the costs of the new refinance.

 

Take a look at the chart that shows the average rates according to Freddie Mac for 2012. They are lower today than they were in January of 2012 and for the ten years before that.

 

Refinancing may save you a substantial amount of money, especially if you’re going to be in your home for a long time. It is definitely worth investigating. To get a quick idea of what your savings could be, use this refinancing calculator.