Why is it Important That You Accurately Price Your Home?

Without question, the number one priority for any seller is to price their home correctly so the home sells for the most amount of money in the shortest time possible. Introducing a property onto the market at too high of a sales price will inevitably cause the property to sit on the market for an extended period of time, which is not what we want. The old adage is that you only get one chance to make a great first impression is particularly important when setting the correct sales price for the home.

When the home enters the market, it is immediately tagged as a new listing. This “honeymoon” period is vital at getting your property to the most eyes possible. If the home is priced too high, most people will ignore it. However, if the home is priced just right, it will immediately translate to showings and if presented well, offers will come in. Every seller should consider this when determining the price of their home. Would you like the opportunity to negotiate multiple offers, or none at all?

When it comes to determining the appropriate sales price of your home, there are a number of factors you need to consider and is the reason why you should work with a powerful listing agent with a proven track record and strong marketing plan. It’s more than just what recent properties have sold for, but also what’s for sale that is similar. What is for sale and what is your competition? This is a beauty competition and a price war.

Next, consider the monthly carrying cost of your property. If your motivation is to sell the home quickly, it is critical to price your home to get a quick contract which will alleviate the carrying costs. If a property sits on the market for too long, most buyers will ask a similar question, “What is wrong with the house?” To prevent your listing from becoming “stale,” you must price your home accurately. No seller wants a stale listing.

Over the last few decades, both buyers and sellers have become extremely savvy to property prices and values thanks to the internet. A “Zestimate” does not reflect what a buyer would actually purchase the property for. Another factor to consider is if the condition of your property warrants a price adjustment. This could be due to a property that’s very similar yet at a lower price.

If you would like comparative market analysis to see what your home is worth, give us a call at (561) 395-8418 or email us at info@pbprealestate.com. Thanks and have a great day!

Should You Get Pre-approved Before Shopping for a Home?

Buyers have many questions prior to purchasing a home and that is completely understandable. Some of the most common questions we hear are the difference between a pre-qualification letter and a pre-approval letter and what is the importance of having one. In simple terms, a pre-qualification letter is an estimate of the loan that you might qualify for based on information you have verbally given your lender. It is not a commitment to lend, but it is based on a verbal conversation. A pre-approval letter on the other hand is not a commitment to lend, but it is a stronger assurance of what you’re likely to obtain for a loan. The reason being is that you will undergo a credit check and have to provide your W-2 and tax returns to find out what you’re qualified for. This makes the pre-approval letter superior.

The importance of having a pre-approval letter is that it allows you as a buyer to focus in on homes that you can actually afford and what you can afford on a monthly basis. Having a budget planned out ahead of time gives you comfort level knowing you can meet your monthly obligation. Also, when your agent presents your offer to a seller, it gives the seller the peace of mind that you will be able to complete the transaction (especially in a multiple offer situation).

If you have any questions about pre-qualification, pre-approval, buying or selling, please give us a call at (561) 395 8418. Thanks for watching!

What Can You Do to Prepare Your Home for Sale?

Preparing your home for sale is a crucial step in the listing process and one that is often overlooked. I am bringing you some tips on very affordable things that you can do to the interior and exterior of your home to prepare it for the market. Beginning with the exterior, the old adage says, “You have one chance to make a great first impression.” With that being said, curb appeal accounts for everything. Remember you are in a Beauty Contest; think of it as a Miss USA competition combined with a price war.

To improve the curb appeal of your home, you can begin by pressure washing your roof, all walkways, your deck, drive way and patio. You can also touch up your landscaping by trimming trees, replanting flowers and spreading new mulch. This is the time to clean out your gutters and take care of those small “fix it” jobs as well. If a buyer likes your home, they will most likely drive by at night so make sure all bulbs have been replaced in your exterior lighting and your landscape lighting shows off your fresh landscape. Also, make sure to keep unsightly trashcans out of view.

As for the interior of your home, make sure that you have some sort of candle or air freshener available so that the home smells fresh. Be sure to depersonalize and declutter; perhaps consider having the home professionally staged because keep in mind that buyers want to try and envision themselves in your home. Professional stagers are experts at knowing how to show off your home’s best features and benefits. Their efforts can dramatically speed up the time it takes to get quality offers on your home. Go ahead and open your blinds and keep the colors neutral in the home because buyers love bright and airy. Set the dinner table, fresh flowers on the table and use items that touch the senses like fruit bowls or freshly baked cookies.

The 3 best words when getting your home ready for sale are “Less is more.” Try and accentuate the best features and benefits of your home. Removing clutter will also make your home to look bigger and gives you an opportunity to move furniture around thereby showing off the room in all its glory. Focusing on the little details prove that the big stuff tends to take care of itself. For example, do you have any bulbs out? You want to illuminate the home when showing it to buyers. If you have marble or tile flooring, consider having it professionally cleaned and the grout cleaned.

If you have carpet, you may want to have it professionally cleaned. This is especially important to do if you have pets as some potential buyers may be allergic. Do any of the rooms need a touch up with paint (or color change if the room is painted a dark or unusual color)? Removing and dust is key because buyers are very hands on.

Thanks again for tuning in; we’ll see you next time!

Is Now the Time For You to Sell?

South Florida has had one of the best real estate markets in 15 years with some of the lowest inventory levels the real estate industry has seen for some time. As a seller, there has been significant price increases in the last 18-24 months. We are seeing pent up demand from buyers and a shortage of new construction as well. Between the years 1968-2008, at least 1 million homes were constructed each year compared to 2009-2011 where only an average of 647,000 homes was built each year.

With record low inventory, record low interest rates and increasing demand for new and residential resale homes, a perfect storm has been created. South Florida, which was hit hard by the housing crisis, has turned on a dime and by starting at an abundance of inventory to a shortage of inventory.

These extreme shifts are an example of a market trying to find its balance. Interesting enough, the median price for condominiums are rising while residential prices are beginning to level. Buyers need sellers more than ever.

According to Freddie Mac, the average interest rate is about 4.375% compared to 3.375% a year ago. Ultimately, homes selling in the current market place are priced correctly and should take away some of the fear of another housing collapse. Thanks for watching!