Christine Molla's Blog
The term "fair market value" is the price at which an interested but not desperate buyer is willing to buy and a motivated but not distressed seller is willing to sell on the open market in your location. The set value depends on recently sold similar-sized homes with like amenities, upgrades, and location. These are known as "comparables" or "comps" in real estate jargon.
Your best resource for learning the market value of your home is your trusted real estate professional. They have access to lists of homes like yours that sold on the open market in recent weeks and months. Of course, no one can know if your home will sell since other factors might be at work too. Changes in local industry and the job market might cause prices to move either down or up. Weather can factor in also.
What if prices drop?
Should you enter the market just as prices begin trending down, you might choose to set your price just below the fair market value. That way, you won’t be forced to lower your opening price if they keep trending downward. To stay competitive, increase the value, not the price. Professionals know ways to market your home’s exceptions such as recent upgrades, repairs, a new roof, walkability, proximity to social life and other seemingly intangible items that keep your home at the top of people’s list.
What if prices go up?
Neither you nor your agent can accurately anticipate the market. But if prices seem to be going up, set yours near the top of the “fair” values. Try not to overprice your home since doing so can have unintended consequences. Lenders and underwriters operate slightly behind the market adjustments, so when you set a too high price, your buyers may not qualify for financing.
Setting the price
Your agent can help you set the right price the first time. Trust their knowledge and expertise in the marketplace. If you’re not sure about the price, test the waters by asking your agent to keep your home as a pocket listing. That is, a listing they can tell agents and clients about that doesn’t appear on the multiple listing services (MLS). That way, you can see if your pricing strategy gains any traction.
Purchasing a house should be an unforgettable journey for all the right reasons. However, problems sometimes may arise that can make it tough to enjoy a positive homebuying experience.
Whether it's struggling to know where to search for your dream home or getting the financing you need to purchase a house, myriad problems may prevent you from enjoying a positive homebuying experience. Lucky for you, we're here to help you identify potential homebuying hurdles and eliminate such problems before they escalate.
Now, let's take a look at three tips to help you reap the benefits of a positive homebuying experience.
1. Enter the Housing Market with Clear Expectations
If you know you want to purchase a house, it helps to enter the real estate market with clear expectations. That way, you'll be better equipped than ever before to streamline your house search.
Consider what you want to find in your dream house. For example, if you want to own a house near the beach, you should conduct your home search accordingly. Or, if you want to buy a home with a big backyard and outdoor swimming pool, you can hone your home search as needed.
Think about areas where you want to reside too. By doing so, you can focus on available homes in specific cities and towns.
2. Know Your Homebuying Budget
Get pre-approved for a mortgage – you'll be glad you did. Because if you have a mortgage at your disposal, you can pursue houses in a specific price range and speed up your home search.
Obtaining a mortgage can be simple. In fact, if you meet with a variety of banks and credit unions, you may be able to get a mortgage in no time at all.
Remember, banks and credit unions employ knowledgeable mortgage specialists who are happy to assist you in any way possible. If you have any mortgage questions, these specialists can respond to your queries. And as a result, you can gain the insights you need to get a mortgage that matches your finances.
3. Employ a Real Estate Agent
A real estate agent is a difference-maker, particularly for a homebuyer who wants to seamlessly navigate the property buying journey. With a real estate agent at your side, you can achieve the best-possible results, regardless of where and when you're searching for a home.
Typically, a real estate agent will meet with you, learn about your homebuying expectations and help you map out a property buying strategy. This housing market professional can offer expert insights into the local real estate market and ensure you can pursue houses that match your expectations. Plus, a real estate agent will set up home showings, help you submit an offer to purchase your dream house and negotiate with a seller's agent on your behalf. And if you ever have concerns during the homebuying journey, a real estate agent will address them immediately.
Ready to enjoy a positive homebuying experience? Use the aforementioned tips, and you can quickly and effortlessly navigate the homebuying journey.
The saying goes that you only get one chance to make a first impression and that applies not only to our personal and professional lives but also to real estate. Humans are sensory by nature, and those senses are linked to emotions that often determine our decisions.
When you have the opportunity to capture someone’s emotions, make them gasp when they walk in a room or see a home for the first time. If you can do that you’ve won the first impression – and made a great one.
As you begin the home staging process, keep this in mind and target those emotions through sensory input. Colors, smells, sounds, even the temperature, and humidity of the interior of the home can have a powerful impact on a buyer. This is where they will live their lives, raise their families, live out their retirement, tell their stories. Staging should make it easy for them to place themselves in each room and picture a life there.
This is how you make that happen.
Depersonalize to create a blank slate for buyers to write their own lives upon.
Your buyers want to be able to see themselves living in their new home, not someone else’s. So before you do anything, depersonalize it. Remove the family photos, the artwork on the fridge, the personalized plaque over your desk, and other “homey” items. Turn your home into a blank slate so that buyers can see themselves in the space.
Freshen up the interior with a new coat of paint.
A fresh coat of paint just looks nice, it’s relatively inexpensive, and when combined with cleaning and decluttering, it can really add some oomph to your selling power. However, when you decide to take the plunge and pick up the brush, choose neutral colors. Go with soft, inviting colors like off-white, beige, white, and pale gray. You can even use several complimentary colors throughout the house, but avoid emotionally charged colors like lavender, lime green, or pink.
Define the purpose of each room to maximize the living space.
Making every square foot of a home appear to be usable space is definitely a great selling point. An unused room with no real purpose can be turned into a craft room or home office. Transform attics and basements into family rooms, guest bedrooms, or libraries. When buyers can see the potential of a room, they can easily place themselves in it, and they also see that no space is wasted
Use lighting to your advantage.
The right light can transform a room. In fact, good lighting is at the top of most homebuyers’ wishlists. Letting outside light in can make a room larger, but interior light is also key. For maximum effect, use three types of lighting: accent (table, shelf, wall), task (reading, pendant), and ambient (overhead). Combine these three to create an attractive, inviting space that will draw your buyers in and make it feel like home.
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