When it comes time to sell your home, determining its exact value can be a challenge. Naturally, homeowners want to get the most value for their home. However, if it hits the market at too high a price, it could cause serious complications in the selling process.
Attracting the wrong buyers
An overpriced home creates a kind of seller’s limbo that draws the attention of the wrong buyers, which is a surefire way to start your selling process off on the wrong foot.
A vast majority of homebuyers begin their home search online, especially during these days of social distancing amidst the COVID-19 pandemic. If your home is overpriced in comparison to other listings in your area, it won’t appear in their search results. In this way, an overpriced home is blind to its intended buyers and actually drives traffic to nearby listings that are more accurately priced.
An overpriced home can’t compete with listings in a more expensive bracket. Buyers know what they want, and they know what to expect in their price range. When they notice a home is missing the square footage, features, and amenities typically found in others at the same price, they will quickly lose interest.
Fewer showings / virtual tours
Showings—both physical and virtual—play a significant role in the sale of your home. They give buyers a first-hand look and provide them the opportunity to ask questions and gather more information. Selling your home is a numbers game. The more showings scheduled at your listing, the more potential buyers you have. The more potential buyers, the greater chance of an offer.
Your agent knows that showings are critical to capturing buyer interest. But if the home is overpriced, they will have difficulty attracting attention to your home. This can slow the entire home selling process, leaving both the seller and agent feeling frustrated.
Expired shelf life
Think of the home you’re selling as a fresh tomato. Off the vine (newly listed), it is fresh and attractive, appealing to everyone in the market and standing out amongst the other tomatoes. As time goes on, no one buys the tomato and it begins to overripen and wither, losing its appeal. This is what happens to an overpriced home in the minds of buyers.
New listings attract the most attention—that’s when buyer interest is highest. The longer your home is on the market, the less appealing it becomes. At a certain point, sellers are forced to lower the price. However, this lowered price won’t have the same impact as hitting the market correctly priced the first time. Once price drops begin, they can continue, which creates the risk of selling the home for less than what it is worth.
Lastly, the longer your home is on the market, the more expenses you incur. Mortgage payments, utilities costs and seller’s fees will continue to pile up, making it harder to recover from these costs when your home does eventually sell.
Let’s say you do find a buyer at the overpriced cost. During closing, the lender will order an appraisal of your home, and if the appraiser finds that the market value of the home is less than the selling price, they could potentially deny financing.
Talk to your Windermere agent about how to price your home correctly to avoid these pitfalls of overpricing. Knowing your home’s worth will set you up for success when it comes time to hit the market.
It is a seemingly simple question. However, discovering the worth of your home is more complicated than it might seem. Sites like Zillow, Redfin, Eppraisal, and others have built-in home valuation tools that make it seem easy, but how accurate are they? And if you get three different answers, which one do you believe? Online valuation tools have become a pivotal part of the home buying and selling process, but they’ve proven to be highly unreliable in certain instances. What these valuation tools have made clear is that real estate agents are as vital to the process of pricing a home as they ever were—and maybe even more so now.
Every online valuation tool has its limitations. Most are readily acknowledged by their providers, such as “Zestimate” from Zillow, which clearly states that it offers a median error rate of 4.5%. That may not sound like a lot, but keep in mind that 4.5% amounts to a difference of about $31,500 for a $700,000 home. For Redfin and Trulia, there are similar variances. When you dig deeper into these valuation tools, it’s no wonder that there are discrepancies. They rely on a range of different sources for information, some more reliable than others.
Redfin’s tool pulls information directly from multiple listing services (MLSs) across the country. Others negotiate limited data sharing deals with those same services, relying on public and homeowners’ records alike. This can lead to gaps in coverage. These tools can serve as helpful pieces of the puzzle when buying or selling a home, but the acknowledged error rate is a reminder of how dangerous a heavy reliance on them can be.
Nothing compares to the level of detail and knowledge a professional real estate agent offers when pricing a home. An algorithm can’t possibly know about the unique characteristics of neither a home nor its neighborhood. Curious about what improvements you can make to get top dollar or how buyer behaviors are shaping the market? They cannot provide an answer there, either. That can only be delivered by a trusted professional whose number one priority is getting you the best price in a time frame that meets your needs.
If you’re curious about your home’s value, Windermere offers a tool that provides a series of evaluations on your property and the surrounding market. And once you’re ready, we’re happy to connect you with a Windermere agentwho can clarify this information and perform a Comparative Market Analysis to get an even more accurate estimate of what your home could fetch in today’s market.
On this week’s episode of “Mondays with Matthew,” Matthew Gardner looks at last week’s real estate and economic news and goes beyond the headlines so that you can not only stay on top of the issues that affect you and your business, but also get more detail than is generally offered by the media.
Life as we know it has changed dramatically in the coronavirus era, affecting work, school, travel, and more. And it’s shed light on the way we live at home, underscoring the fact that there’s nothing more important than safe shelter for our family.
To that end, COVID-19 is influencing what people want to see in home design.
“After the pandemic, our homes are going to reflect the lessons learned during this painful period, such as ways to disinfect ourselves and our possessions,” says Jamie Gold, a wellness design consultant and author of “Wellness by Design.”
In a postvirus world, we won’t soon forget our shelter-at-home memories. Going forward, if there’s even the slightest chance (god forbid) that we’ll need to repeat this awful practice, homeowners may want to prepare by buying or renovating a house with amenities that’ll make it just a bit more bearable.
To help, here are 10 features to look for in a new home—or demand in your current one—once we’ve bid the coronavirus adieu.
Taking off your shoes before entering the house has long been recommended to cut back on grime and germs. But now that a recent study found that the novel coronavirus can cling to shoes’ soles and then get tracked inside, even more people may start removing their shoes right as they enter a house. This could make the presence of mudrooms—including larger, souped-up versions with seating areas and cubbies—more appealing than ever.
You probably weren’t alone if you found your food storage was lacking in the early days of the coronavirus—and the fix will be bigger and better pantries. Room for nonperishables is key so you can cut back on the number of grocery store trips you make.
No room for a dedicated pantry? Sipp anticipates a need for more food storage like shelving and cabinets in other parts of the home, like the garage and basement.
“And larger pantries won’t necessarily live in the kitchen area, but will instead be more of an add-on in the laundry room or entryway,” says Gold. The reason: Deliveries can be made contact-free, away from living areas, and trips into the house will be reduced.
Remember the old-fashioned chest freezer your grandmother had? Look for it again, along with more built-in freezer drawers, in future home design. Panicky pandemic shoppers are snapping up all manner of foods, and the result has been a sold-out stock of freezer units.
The French know a thing or two about healthy bathroom design—and we’re finally taking notice. Bidet use was already on the rise before the coronavirus, and since toilet paper shortages have hit hard, more and more folks are looking to install this amenity.
Bidets are gentle and hygienic, and even when TP is back on store shelves, these devices will still be in demand, says Gold.
Want something cheaper than installing a whole new appliance? Consider the washlet, which is a seat fitted to an existing toilet that’s equipped with a spray nozzle.
“There’s less need for tissue with a washlet,” says Melanie Turner, an architect at Perkins & Will.
“COVID-19 has brought to light a heightened desire for discrete areas, no matter how small, and convertible spaces like guest rooms that can be used for playtime or as a homework spot,” says Turner. But open floor plans probably won’t disappear—instead, a better balance between private, semiprivate, and public spaces is coming.
“The reason is the need for homes to multitask better, which means if you have two partners suddenly working from home and a couple of kids home schooling, you’ll have more quiet, separate spaces for everyone to function effectively,” says Gold.
Adapting to a new, more germ-conscious way of living starts with a return to copper and brass (a copper-zinc combo) for doorknobs and fixtures. In fact, brass kills bacteria more effectively than stainless steel, according to research.
Brass and copper are excellent metals for the home because both are naturally antimicrobial and corrosion-resistant.
“Copper is one of the best for its antimicrobial properties and has been used for decades in plumbing—and brass and bronze are also very popular because of their inherent ability to kill germs, plus over time they give a desirable rustic look,” said Karp.
“We already have hands-free faucets, light switches, and voice-control features to operate windows, showers, thermostats, and sound systems. Plus there’s a hands-free door opener that’s being introduced for homes,” points out Gold, who anticipates seeing them in homes now more than ever.
“We’ve had touchless entry and infrared detection systems in place for years in hotels, so I expect to see these technologies applied for opening home cabinets, fridges, and drawers in the near future,” adds Karp.
For people with allergies, asthma, or other respiratory issues, more sophisticated HVAC systems, including those that can be closed from the outside world for limited amounts of time, might become more common.
“We have to weigh the benefits of fresh air with the desire to temper or limit intake at very specific times,” says Turner.
This one’s obvious, and it runs the gamut from a fully equipped workspace in a separate room to smaller iterations like nooks under the stairs or a retrofitted closet.
Having a quiet area in which to work will be a must-have, and if you can include the ability to work while standing up or moving, your wellness will be enhanced, says Gold.
“As people video chat and Zoom more with colleagues from home, they’re becoming hyperaware of the changes they’d like to see in a home office, including better lighting and more storage. And since a return to the workplace will be gradual, high demand will continue for an office that’s comfortable and functional,” says Sipp.