So, you’re thinking of selling your home in Wake Forest NC! It’s a crazy market right now so, first of all, I applaud you for your understanding that many homes aren’t getting SOLD as quickly as they used to. That’s not to say that there are some homes that no sooner hit the market and they are pending but there is a reason for that. They are PRICED appropriately for TODAY’S real estate market!
I received a call the other day from a potential home seller in Wake Forest NC. It certainly illuminated a light bulb for me! They had called a few other agents prior to me (no offense taken) and were given List Prices over the phone. Wait, huh? Yep, the other agents had taken the details of their home such as square feet, age of home, bedrooms, baths, lot size and age of home. Then, while on the phone with the potential seller they proceeded to pull up comps (Active Listings, Closed Listings and Pending Listing within the neighborhood) and based their OPINION of a List Price for the potential seller on the Average Price Per Square Feet within the same neighborhood. Well, at least they used the same neighborhood! TWO other agents did that!
The seller wanted me to do the same. Again, wait, huh? They were hoping to get the same from me so they could then decide which company they wanted to negotiate commission with. That’s a WHOLE other post. But for this post, stay with me…..
It doesn’t matter if you are thinking of selling your home or buying a home you can not base a decision as important as that on the Average PPSF within a particular subdivision. So many factors lead up to an ultimate list price or offer price for a home. Sure, price per square feet may be a baseline but you also need to take into consideration:
- Updates (are appliances original or updated, carpet original or updated, etc)*
- Upgrades (and be REASONABLE with your expectations for ROI <Return on Investment>)*
- General Upkeep/Maintenance of the home
- Lot location within the Subdivision
- Curb Appeal/Presence (YES, it matters!)
- Any additional feature that may be unique to your home or the competition
* There is a HUGE difference between Updates and Upgrades. An update is bringing a feature up to date such as an appliance. An Upgrade would be not just a base model appliance but an appliance that has additional features
I finished my conversation with this potential seller by telling them that I would not be able to provide them with an accurate pricing strategy over the phone. In order for me to do so I would need to physically visit their home and tour it as well as tour the competition. I also suggested that THEY tour the competition to get a better idea of what they are up against. They had heard of that before and it wasn’t suggested by anyone else. I wished them luck on their home sale.
Well, guess what? I got the call back to come out to their home, it is listed and they did NOT ask me to negotiate my commission. They told me that I was, above all, honest with them and held their hand throughout the pricing process. They were excited when we visited the competition and it really helped them to understand the Real Estate Market within their subdivision and how their home, which is now a product, contributed to the cycle.