Setting the Right Selling Price for Your Charlotte Home for Sale

The debate is as old as the real estate industry itself.  Does a low, highly competitive selling price for your Charlotte NC home for sale actually generate a faster, more profitable sale than a slightly inflated price with a willingness to negotiate?   It has never been more important that sellers make informed decisions about their asking price and negotiating strategy.  A seller with an unreasonable opinion of their home’s value is either a wishful thinker or does not have the benefit of an accurate market absorption or comparative market analysis and a real estate agent who specializes in the area.  Let's explore this debate a bit...

 Get Real, Know the Facts

When sellers decide to list their home for sale in the Charlotte NC real estate market, they usually have an opinion of value, based on reported sales of similar properties.  Consciously or subconsciously, most homeowners follow the real estate activity of surrounding homes.  However, every real estate transaction stands independently.  

In today’s market, buyers and sellers negotiate to capitalize on tax incentives, green-initiative improvements, closing fees, homeowner credits and local incentives.  Thus, the “neighborhood selling price” may not represent the price you can actually get for your home.

Real estate agents use differert strategies to secure listings and suggest sales prices for their sellers.  Therefore, a seller who requests proposals from three different Charlotte NC real estate agents may very well get three different opinions of value:

1. One agent may want the listing at any price and be willing to accept an owner’s requirement for a high asking price just to land the listing. 
2. Another agent may be conservative and encourage a low asking price in the hopes of generating superior demand.  This strategy was effective in the boom years.
3. A third agent may combine his knowledge about the property, the neighborhood and today’s real estate market to come up with the optimal listing price.
   
   
   

 The Optimal Listing Price

Responsible Charlotte NC real estate agents view the property from three positions. 

1.  First we inspect the property, top to bottom.  We understand its history, the neighborhood, its strengths and its weaknesses.   
2.  Next, we do our research.  We compile a complete, relevant list of recent sales, a thorough list of properties on the market and a comparable list of recently concluded Charlotte NC real estate transactions.  We balance this information against the cost of new construction.  We factor in what improvements might be necessary to stage the home more effectively. 
3.  Finally, we use this quantitative analysis, routinely called a comparative market analysis, to recommend a strong selling price designed to garner demand.

This is not an exercise in futility, folks!  This is about establishing the maximum selling price your Charlotte home for sale should achieve.  Keep in mind that your home could be worth $1,000,000 in your mind and your neighbors could be asking $1,000,000 for their home but, the market value is only as much as a buyer will pay.  You cannot list your property based upon the neighbor's current listing price, rather recent sold prices must be used to position your home on the market.

To further discuss how you can realize the greatest real estate value for your home, contact me today at (704) 491-3310 or by email at Debe@DebeMaxwell.com.

How to be a Strong Charlotte NC Home Buyer

During a slow market, buyers have the biggest advantages of all.  That’s why now is a great time to buy Charlotte NC homes.  Haggle without feeling guilty because you have the upper hand; your seller is likely to have the upper hand upon their purchase.  But, don't be 'smug' about it though--keep in mind that sellers have likely taken the advice of agents with market knowledge who have helped them position their homes on the market--WELL.   As the market bounces back, you will have the added bonus of rising prices making your home worth more than it was when you bought it.

Even in this buyers’ market, you need to be a strong buyer.  Otherwise, you could crumble when faced with negotiating prices or needed repairs.  Three ways to be a strong buyer of Charlotte NC homes:

•    Tour any home for sale with a set idea of the value of property in the area.  This means taking a little time to do your homework.  Your Realtor® knows the prices of the area, you can't be run over by a forceful seller who is determined to convince you his price is firm and fair market value.  This knowledge also helps you deal with sellers who are emotionally attached to their homes and can't price them according to true market value.
•    Tour homes for sale with an experienced Realtor® who has extensive knowledge of the community.  When you have a professional Realtor® working for you, you are not alone.  Your agent will do all your negotiating for you and will also benefit from their intimate knowledge of the area and what to look for in a Charlotte NC home.
•    Tour any home for sale knowing your needs and price range in advance.  Going home shopping without a clear concept of what you want and what you can afford, can lead to emotional decisions.  That can be hazardous for your bank account too!

Be sure you’re pre-approved and armed with the confidence to know what you want and how much you’re willing and able to pay.

If you would like more tips on how to be a strong Charlotte NC home buyer, give me a call today at (704) 491-3310 or email me at Debe@DebeMaxwell.com

 Agent Sam has a listing -- listed for $159,000 -- MLS data says that owner will do owner financing and need a "quick sale".

Agent Bob has a buyer client who offers $155,000 with the owner doing the financing.

Sam talks with his seller and they counter  --  Bob calls his buyer client and relays the counter -- buyer verbally accepts the offer.

Seller does not have the counter in writing because the seller has no fax and no scanner and lives too far for listing agent to go and get initials.

Sam suggests to Bob that he get his buyer client to sign and then he will get the seller to sign.

Bob gets with his buyer and the buyer initials the changes and leaves thinking they have bought a house.


Before Sam can get with the seller, he gets a phone call from the seller saying that he remembers speaking with this buyer before the property was listed and that this is the person he wanted to exclude from the listing agreement.

The listing agreement had no exclusions.  But then, the seller also tells Sam to change the MLS -- he no longer is willing to do owner financing and no longer desperate for a quick sale.

Bob is quite taken back  and so is his buyer client.  So, the deal is over.

What is the moral of this story?

    1) Do not ever counter contracts verbally -- each counter should be in writing and property initialed and dated.
   
    2) If there are exclusions, they must in writing in the listing agreement and noted in the MLS.

    3) If the seller lives too far away for you to get to them at contract time, then you need to be sure that they have some way to communicate with you in writing (fax, or scanner for emailing)

What do I think about this scenario?

Sounds like Sam has a fickle seller who has put Sam and his real estate company in a bad light -- perhaps Sam should just let the listing go. 

    

            What do you think?  Please comment below.