Price and Condition Are Synonymous.... Not Exclusive of Each Other

By
Real Estate Agent with Keller Williams Realty

When Selling a Home, Price and Condition Are Synonymous..... Not Exclusive of Each Other

Sure homes in certain neighborhoods are selling off the hook and many sellers may be wondering why their home is not selling despite that highly sought after neighborhood.  Well here's some food for thought:

  • Have you done a good job of maintaining your home?
  • Does the exterior need painting?
  • Has your HVAC been serviced regularly (with records to prove it) or replaced in the recent past to a more efficient unit?
  • Is there evidence of a roof problem (perhaps you had that fixed, but failed to replace the stained or damaged sheetrock on the ceiling?
  • Not that clutter is a material issue, but it sure does affect how well a home shows.  Has you home been "show ready?"
  • Does the garage and opener function properly
  • Are there plumbing issues that you just haven't gotten around to addressing?
  • Are there quite a number of things that you just haven't gotten around to addressing?
  • If you've lived in your home for 20 years or so, do your appliances, cabinetry, the shag carpet, tile, windows, overall decor, etc reflect that?
  • Your home may have been built by Mike Brady, but his 1970's style guide could use a bit of tweeking (30 + years later).
But let's say that you have done a good job of Price and Condition are Synonymousmaintaining the home.  There are other factors to consider as well.
  • Did you check out the home while it was listed to see how it compared to yours?
  • Perhaps the home was a designer showcase, well maintained, had great curb appeal?
  • Did those homes have more square footage than your home?
  • Did they have basements and yours doesn't?
  • How about bedrooms and baths?  Even one additional bedroom and an additional bath (even a 1/2) may have taken you out of the competition.
  • Sure you may have an extra bedroom, but the garage had more value to the buyer down the street.
The bottom line is this, when pricing your home the determining factor is not every home in your neighborhood that has sold.  It's every home in the neighborhood that is most LIKE yours that counts.  Price, style, condition, sq. footage, lot  size, etc. all count in the comparison.
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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Winston Heverly 01/06/2013 05:00 AM
Topic:
Real Estate Best Practices
Location:
Alabama Jefferson County
Groups:
BananaTude
Tags:
pricing

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Show All Comments
Rainmaker
1,100,914
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Charita congratulations on the feature post, I love how you touch on the fct a whnplacing a vaue on a home, you dont use every home that sold in your neighborhood as a comp, just the ones that are similar. Price certainly can make up for a poor condition but what sellers do not always realize is how fast and low a price can fall when the condition is poor or a home needs work.

Aug 15, 2012 05:59 AM #31
Ambassador
684,323
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Thanks Wandanna.

Pamela every house has it's price is definitely right.  Getting homeowners to realize that price is sometimes the challenge with homeowners.

Thanks Gita and me too.

Scott when researching property info and expired listing (based on the listing date), I can clearly see that some agents used every available sold property as a comp (at least it definitely appears that way).

Aug 15, 2012 06:08 AM #32
Rainmaker
525,055
Amanda S. Davidson
Living A Dream Real Estate - Alexandria, VA
Your Northern Virginia Realtor

Charita- This is such a well deserved feature. I think it's excellent advice that you point out not all homes that have sold in a neighborhood are comps. If buyers don't see the value in a home it just won't sell over the competition. Great post!!

Aug 15, 2012 06:23 AM #33
Rainmaker
71,215
Deb Harshman
Long and Foster Real Estate & Staged Home Decor - Potomac, MD
Realtor & ASPMaster Stager, The Selling Advantage

Thanks so much for the fabulous words to pass on to the client. It always helps to have an unbiased party's words to support your own!  Challenge to conquer right now as I am doing a proposal.

Aug 15, 2012 06:59 AM #34
Rainer
53,733
Debra Hight
Coldwell Banker United, Realtors - Houston, TX
Debra Hight

Very helpful post Charita.  More than ever, I think buyers are looking at condition and aren't willing to take on maintenance that should have been performed by the sellers. 

Aug 15, 2012 07:04 AM #35
Rainmaker
636,509
Stephanie/Bob The Ruiz/Miller Team
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Charita, we agree.  It really is all about price.  At the right price anything in any condition will sell.

Aug 15, 2012 09:38 AM #36
Rainer
297,300
Gina Lemos
North Orange County CA Real Estate Specialists - Yorba Linda, CA
Orange County CA Real Estate Agent

Great points Charita! Even though it's what I would consider to be a "sellers market" here in CA, you can't expect top dollar if your home is dated and the comps are all upgraded.

Thanks for the post and have a great week's end!

Gina

Aug 15, 2012 10:47 AM #37
Rainmaker
1,264,036
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

People always grab every advantage - in their mind - for their home, but they need to be realistic.

Aug 15, 2012 02:34 PM #38
Rainmaker
625,421
Sussie Sutton
UTR Texas Realtors - Pearland, TX
UTR TEXAS Realtors - Rep for buyers and sellers.

Great point! Hopefully many sellers will read your post!

Aug 15, 2012 05:01 PM #39
Rainer
27,875
Brian Park
Park Realty Investments - Murray, UT

OK, stuck in a rut on Price and condition. Price depends on condition, price depends on price, price depends on location, priced depends on demand, price depends on terms, price depends on seller motivation, price depends on buyer motivation, price depends on available financing, price depends on school district, price depends on water supply, price depends on this and on that, and not a single one of them equates with price, they are all a part of price, get it price, not a separate component, price is all the components put together, the total sum of the parts, comparing a part to the whole is a poor comparison method. I don't come up with the price of a car by just checking out the tires.

Aug 15, 2012 06:23 PM #40
Rainmaker
977,730
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Charita, you have tied together two of the three words that are most important to a Seller - price, condition and location. Location can't be changed, but price and condition entwine as you say. This is so worthy of a Feature!

Sharon

Aug 15, 2012 07:58 PM #41
Ambassador
684,323
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Amanda even when a home isn't in the highest price range, we are still talking about a cosiderable amount of money and buyers get to chose what they want to spend it on. That's where your comment comes in......they have to see the value for their dollar.

Debra people are busy. They just want to move in and move on with life and that doesn't include a rehab.

ANY thing in ANY condition Bob. Exactly.

Gina sometimes people want to price the home at what it would be worth after buyers make the updates. That's the makingsof an unsold home.

Aug 15, 2012 07:59 PM #42
Ambassador
684,323
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Gene when the tables are turned, peole see things differently.  Hence when a seller becomes a buyer, the picture becomes more clear and vice versa.

I'm hoping the same Sussie.  The AR members have made some valuable contributions to this conversation and it just goes to show that this is something that is universal.

Aug 15, 2012 08:10 PM #46
Ambassador
684,323
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Yep Brian.

Sharon some people buy a home thinking that they will be their until they die.  But we never know from one day to the next what situation we'll be in.  Having said that choosing a location is of utmost important so extra careful thought should go into that (both on the buying and selling side).  But in either case, the location will contribute to the price as well.

 

Aug 16, 2012 05:22 AM #47
Rainmaker
1,391,926
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

   True....true...assuming that they will live there forever....easier to look at issues one at a time and more frequently than wait until sale time and find there are tons of things to be done all at once.

Aug 16, 2012 05:47 AM #48
Rainmaker
233,579
David Grbich
Ventana Coastal Properties - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

So true - great post. There is more to just looking at comps and condition plays a key role in a buyer's willingness to buy. Regards Dave

Aug 17, 2012 07:30 AM #49
Rainmaker
338,886
John DL Arendsen
ON THE LEVEL General Contractor, Crest Homes Factory Built Housing Dealer & Developer & TAG Real Estate Sales & Inves... - Leucadia, CA
Contractor, RE Brk, Factory Built Home Dealer/Devl

Lot's of great common sense info here. We all just need a littl reminding now and then.

Aug 17, 2012 07:50 AM #50
Rainmaker
1,027,739
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
PasadenaCA Real Estate Representation 818.516.4393

Hello Charita -- and pricing it right upfront rather than testing the market is always preferable in my opinion.  Lots of great advice and comments.  Congrats on the feature.

Aug 18, 2012 06:12 AM #51
Ambassador
684,323
Charita Cadenhead
Keller Williams Realty - Birmingham, AL
Serving Jefferson and Shelby Counties (Alabama)

Sally it's funny you should mention that because some people still buy houses with the notion that they will live there forever.

David there are so many things that factor into the home selling schematic.  Price and condition are just part of it, but a very important part.

John you would think so wouldn't you?

Michael testing the market should be for FSBO.  As Realtors we don't have time for that and should walk away if we suspect that people want to use us in that way.

Aug 18, 2012 06:17 AM #52
Rainmaker
37,514
Tom Horn
Thomas Horn, Real Estate Appraiser - Alabaster, AL
Appraising The American Dream

What you say is correct Charita and holds true for how appraisers pick and analyze comparables.  I sometimes get homeowners that ask me why their home did not appraise for as much as the house down the street.  I explain to them that that house was bigger, or had more upgrades, or had recent repairs and renovations.  Appraisers do make adjustments for the very things you describe. If you don't want to add square footage to increase the value of your home you can at least make repairs and keep it up to date.  Thanks for the pointing these things out Charita.

Aug 29, 2012 05:55 AM #53
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