Attention Sellers: Be Ahead of Your Competition This Spring!

There are many great Boca Raton and Palm Beach County homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call us at (561) 395-8418 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I wanted to speak with you about how you determine what your competition is when listing your home. First of all, keep in mind that when pricing your home for sale, we want to price it in a way that will make it attractive to buyers. Buyers aren’t just looking at your home, they are going to shop around and compare your home with others!

What are the Buyers Looking At 

As buyers look at houses, they are comparing features such as granite countertops, new appliances, fresh paint, upgrades/improvements, condition, location and price. Buyers also compare the price-per-square foot, curb appeal and the year the home was built. Savvy buyers will be comparing your home to your competition as they search for their ideal home. You want to make your home stand out as best you can!

Keep in mind that you get one chance to make a great first impression, so focus on your curb appeal. Tis means landscaping, driveway, pressure washing the roof, cleaning out the gutters and perhaps even consider a fresh coat of exterior paint. I’ve always felt that if you focus on the little things, the big things have a tendency to take care of themselves!

Another area where you will find yourself going up against your competition are some of the benefits you home has to offer above your competition. This includes the back yard, whether you have a pool or not (and if it’s screened in) and of course, the view. Buyers consider school districts, proximity to shopping, places of worship, walkability and major transportation routes.

Buyers also pay close attention to mechanical updates. This means when was the air conditioning system was replaced, is there a central HVAC, the age of the water heater and roof, and the age of the appliances. All of these areas, whether its mechanical, curb appeal, square footage, updates and improvements, all have an impact on your property pricing as your home competes with others out there in the marketplace.

Most importantly, you want to price your home where it will sell and give yourself the best opportunity to negotiate multiple offers. Many sellers you will be competing with in the marketplace will try and leave room to negotiate by listing their property too high. The last thing you want is to list your property on the market and not sell! Review the competing properties and arrive at a list price that gives you the best possible chance of receiving numerous offers.

If you have any questions or want some more ideas about how to prepare your home for sale and receive top dollar, please call us at (561)395-8418 or email us at Info@PBPrealestate.com. As always, we look forward to speaking with you. Thank you for watching and see you next time!

Market Value vs. Appraised Value: How It Can Impact the Sale of Your Home

There are many great Boca Raton and Palm Beach County homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call us at (561) 395-8418 for a FREE home buying or selling consultation to answer any of your real estate questions.

Today I’d like to discuss the difference between Market value and Appraised value. The topic is particularly relevant right now as the lending guidelines are constantly changing. Market Value, according to the Appraisal Foundation, is “The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assuming the price is not affected by undue stimulus.”

Now of course, that’s quite technical, so let’s simplify this definition a little. Market Value assumes that the buyer and seller are both motivated, both parties are well informed and advised and acting in their own best interest. Market Value also assumes a reasonable marketing time for the property on the open market and for a normal (non-distressed) sale.

Appraised Value on the other hand, is the only valuation number a lender can use to determine the value of a piece of real property submitted by a licensed appraiser. Keep in mind that “appraising a parcel of real property” is an art, not a science and is most often used for financing purposes.

Appraised value considers what similar properties have sold for in the same neighborhood in the last 90-180 days. Appraisers will also consider the gross living area (+/- 15%) and consider going outside the development if no other suitable comparables exist. They will also take into account amenities, views and updates to the property.

The problem with appraised value versus market value is particularly relevant when a market is appreciating. Sometimes the values 90-180 days ago may not be representative of what buyers are willing to pay today or what sellers think that they can get today. This value is called Market Value or what a buyer is willing to pay for the property. Interestingly, when market value and appraised value differ on a real estate transaction with financing involved, the lender will only finance based on appraised value.

However, the buyer may have to consider coming to the table with additional funds to meet the market value demanded by the seller. Essentially, the buyer and seller will need to overcome this disparity if it exists in order to successfully close the transaction. Hopefully this has shed some light for you on the difference between Market Value and Appraised Value. Thanks again for tuning in – we’ll see you next time.