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My Home is Unique – How Do I Price it Right to Sell?
Help! My Home is Unique – How Do I Price it Right to Sell? Most homes can be easily priced by looking at comparable properties in the area. A real estate agent will look at recent sales of similar homes as well as market trends – is it an accelerating market or a declining market? But for sellers who own custom or more unique homes, pricing the property to sell requires a more strategic approach. Sellers and agents should start by researching the local market for homes with similar distinctive features. This could include custom architecture, historical elements, eco-friendly designs, expansive views, and more. Even if the properties are not exact, they can provide a baseline for pricing. When setting a price, think about the emotional appeal of your home.
Buyers of custom homes are often looking for something special and are willing to pay a premium. Highlight the standout features that make your home different and make sure these elements are emphasized in your marketing and during showings. Using a listing agent who is experienced in selling unique homes is also important. They should be familiar with the area and can suggest a price that balances competitiveness with the custom nature of your property. They may also suggest you get a pre-listing appraisal to gain an objective view of your home’s value. Flexibility is the key to selling a unique home. Understand that it might take longer than selling conventional property. Not all buyers will be interested in the property and patience is important. Be open to negotiation and willing to adjust the pricing strategy as you get feedback.
“Date the Rate and Marry the House”- Is This Still a Good Idea?
You’ve heard the old expression, “Date the Rate but Marry the House”. The idea is that you can always refinance the loan, but the right house may not come around again. But with rising interest rates and falling home inventory, many buyers are wondering if this mantra still rings true. Should you marry the house at whatever rate is available?
First, the US lending market has been experiencing record low interest rates. In May of 2000, we saw the 30- year fixed rate rise to an average of 8.6% before falling to 6.5% in July of 2009. Historically, any long- term interest rate under 6.5% was considered exceptional. The pattern of rising and falling interest rates has been repeated multiple times in the past 40 years and likely will continue.
While purchasing an unaffordable home with the hope of refinancing quickly into a lower rate is a poor strategy, so is waiting on the home that you like or need if you can manage the payment. A simple truth of the housing market is that as rates increase, home values usually decrease as more buyers are forced from the market. This offers the opportunity for buyers to find a home previously unaffordable. When rates do decline, they can refinance for even more savings.
The concept of “Date the Rate and Marry the House” is not new. Home buyers in this real estate climate need to be more intentional about the home they choose and the costs incurred. Rates will most likely increase before they fall, so weighing the lower home price to the higher interest rate is a personal decision to be taken carefully.
Pricing Your Home For Sale, When Everyone Else Is Overpriced
The past few years have been exciting for home sells. Not only were home prices historically high but buyers were well qualified and enjoying low interest rates. Today’s housing market is dramatically different in many areas of the country. If you are considering selling your home, you may be wondering how to select the correct price when it seems all the sellers around you are still overpricing theirs.
Working with your real estate agent, the first step is to look at recent sales, not just recent listings. You may find quickly that the homes are selling for quite a bit less than they are listed. You also need to look at the trends. Are sales prices rising month-over-month or declining- and by how much? This can help you gauge if you should price higher than recent sales or lower.
In areas with few recent comparable sales, such as markets with many custom homes, it may benefit you to get a professional appraisal. This will cost a few hundred dollars and will give you a full picture of the local market. Appraisers will consider the unique features of your home vs the recent sales, as well as the sales prices. This can offer great information if you have a beautiful view, a larger lot, or a remodeled home.
Finally, rely on the advice from an experienced agent. Don’t be tempted to join the pack if they are overpriced. Be reasonable in your expectations. This will allow you to sell quickly and for the best price possible in the current market.
