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Key Market Factors
How long does it take to sell a home?
There is no easy answer ? some homes sell in a few days, others may take several months.
Recognizing the key factors influencing a sale can give you significant control over market time.
The proper balance of these factors will expedite your sale:
LOCATION?
? Location is the single greatest factor affecting value.
? Neighborhood desirability is fundamental to a property?s fair market value.
COMPETITION?
? Buyers compare your property against competing properties.
? Buyers interpret value based on available properties.
TIMING?
? The real estate market may reflect a seller?s market or a buyer?s market.
? Market conditions cannot be manipulated; an individually tailored marketing plan must be developed accordingly.
CONDITION?
? Property condition affects price and speed of sale.
? Optimizing physical appearances and advance preparation for marketing maximizes value.
TERMS?
? The more flexible the financing, the broader the market, the quicker the sale and the higher the price.
? Terms structured to meet your objectives are important to successful marketing.
PRICE?
? If the property is not properly priced, a sale may be delayed or even prevented.
? Art Dusenbury?s comprehensive market study will assist you in determining the best possible price.
Which Improvements Add Value To Your Home?
What follows are ?best estimates? for the most typically consistent remodeling projects we have seen across the country? Unless otherwise noted, the maximum time between remodeling and re-sale must be five years; otherwise the ?value-added? figures are void.
|
PROJECT |
COST |
VALUE
ADDED |
COMMENTS |
|
Kitchen |
Low:
High: |
$15,000
$20,000-up |
80 to 110% |
Cost includes new cabinets and countertops and re-wiring; structural changes, relocated plumbing, custom cabinetry, and top-of-the line appliances. |
|
Bathroom |
Low:
High: |
$7,500
$10,000 |
80 to 115% |
Cost includes new fixtures and fittings, tile floors and walls; structural changes, and relocated plumbing. High-end materials and fixtures raise the cost. Note: adding a second bath can yield more than 100% resale value. |
|
Room Addition |
Low:
High: |
$30,000
$40,000 |
50 to 110% |
Depends on type of room; a family room or new master suite (don?t forget to include cost of bath) will add much more vale to a home than a private office or fourth bedroom. |
|
Converting an attic, basement or garage to living space |
Low:
High: |
$10,000
$15,000-up |
25 to 40% |
Cost assumes no structural changes and no new plumbing; value added depends on size of house (smaller house, more value) and type of space created (family room or bedroom, more value than a game room or exercise area). |
|
Adding a deck |
Low:
High: |
$5,000
$10,000-up |
40 to 60% |
The warmer the climate, the more value added; size of deck, complexity of design, and added amenities (spa, trelliswork) influence cost. |
|
Re-painted exterior |
Low:
High: |
$1,200
$1,500-up |
40 to 60% |
Assumes old exterior was worn and repainting was done immediately prior to putting house on market: a new coat of paint probably adds the ?best profit? to selling an older home. |
|
In-ground swimming pool |
Low: |
$20,000 |
20 to 40% |
Cost assumes an average-size pool (16? x 32?) in a rectangular shape; value added depends on desirability to future owner (banks usually do not include pools in mortgage appraisals). |
Source: Home Remodeling Magazine
Timing On The Market Is Everything
Timing is everything on the market. The graph below shows the importance of pricing your home correctly right from the start. The home must be priced right during the intial excitement period, so as to attract buyers and the attention of the real estate community. Homes that are priced to high take a long time to sell!
.
|
+15% |
10% |
|
+10% |
30% |
|
Market
Value |
60% |
|
-10% |
75% |
|
-15% |
90% |
As the triangle graph above illustrates, more buyers purchase their properties at market value than above market value. The percentage increases even further when the price drops below market value. Therefore, if you price your property at market value, you are exposing it to a much greater percentage of prospective buyers and you are increasing your changes for a sale.
Buyers Always Determine Value!
The value of your property is determined by what a BUYER is willing to pay in
today?s market based on comparing your property to others SOLD in your area.
COMMON PRICING ERRORS
|
WHAT
YOU
PAID
|
WHAT
YOU
NEED |
WHAT
YOU
WANT |
|
WHAT
YOUR
NEIGHBOR
SAYS |
WHAT
ANOTHER
ASSOCIATE
SAYS |
COST
TO
REBUILD
TODAY |
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