Sure, we all want to get the most bang for our buck when selling a client’s home. But there are a few common pitfalls that cause both sellers and agents to overvalue their properties. Be careful to avoid these 8 common causes of inflated home prices to more accurately assess your client’s home value.
Over improvement
Improvements should be made for enjoyment, not just resale. A seller cannot add an item to a home, select it to their style, use it, and then expect a buyer to pay the original cost.
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Maintenance vs. Improvement
A new roof on a 25-year-old home is not an improvement, it is maintenance! Adding a third stall to a two-car garage is an improvement.
Need
An owner’s need for money does not increase the value of the home. Would you pay $5000 more for your next home because the owner needed $5000 more?
Paying more for next house
Values are location specific. High values in the destination do not increase the value of the existing home. Whether you are moving to New York or Alabama, there is no effect on the price of your current home.
Lack of factual data
Base the opinion of value on recent documented sales, not neighborhood gossip. Neighbors can be heard saying, “They got their price.” When in fact, they did get their price, but may have paid $3000 in closing costs for the buyers or $5000 on replacing carpet.
“We can always come down”
Some buyers may offer low, but they will do that at ANY price. Sellers are more likely to successfully negotiate to a fair sale price if the original offering is not over-inflated.
Ego pricing
This is the notion that “My house is better than all those other homes.” The seller may indeed have a superior property, but don’t let their nostalgia get in the way of accurate pricing. It’s also critical to adjust where the home is not superior, too.
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Location, location, location
The golden rule of real estate. Price, terms, condition, and marketing can all be changed. Location will remain the same.
Be careful to avoid these 8 common pitfalls that cause sellers to have an inflated sense of home worth.
About Larson Educational Services:
Utilizing 30 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online.
Brad Larson
Florida Real Estate School Larson Educational Services
Don’t bring us home to mom, because we’re the bad boys of Florida real estate education. We have a little something called The Larson Edge–can you handle it???
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Your personal brand is a name, term, design, symbol, or any other feature that identifies your services as distinct from those of other sellers. In short, your BRAND is your IDENTITY. What are some ways in which your brand is delivered to buyers, sellers, your sphere of influence, target market, and other agents? Florida real estate school Larson Educational Services has the answers right here.
Your personal brand is a name, term, design, symbol, or any other feature that identifies your services as distinct from those of other sellers. In short, your BRAND is your IDENTITY. What are some ways in which your brand is delivered to buyers, sellers, your sphere of influence, target market, and other agents? Florida real estate school Larson Educational Services has the answers right here.
You, Inc.
The quality of your brand is the image of you that is portrayed to everyone.
Brand awareness is critical within your sphere of influence and your target market(s).
The keys are: quality and consistency.
Strategic awareness occurs when you are perceived to have distinctive qualities that make your brand stand out as being better than your competitors.
Print Marketing
Being new to the business is not a problem as long as you can clearly sell the benefits of owning your listing and the benefits that your clients will get out of using your services. Print marketing should be part of your marketing plans and may include:
Direct mail
Newsletter
Flyers and brochures
Newspaper or magazine
Direct mail can be powerful and easy to track
A targeted (some say ULTRA-targeted) mailing list is key
Try focused campaigns rather than ‘all occupants
Your farm area
First-time buyers
The distinctions that set you apart from the competition is known as your Unique Selling Point. What makes you different? Using this information can help you set your personal brand apart from your competition and, in the process, bring in more clients to your new real estate business.
About Larson Educational Services:
Utilizing 30 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online.
Buyers, especially first time buyers, will be looking for a number of specific qualities in an agent that will guide them through the process of buying a home. Consider the needs of the buyer when showing them homes.
What do buyers look for in an agent when selecting and showing properties?
Buyers want you to perceive their physicalandemotional needs…listen
A good Realtor helps in narrowing down the field of what I’m looking for, not just the agent’s own listings
Use technology to do the research on the houses first so we don’t have to waste time looking at places we have no chance of buying
As an agent, you need to know which homes will emotionally destroy your clients.
Save time by knowing and previewing the properties in ‘my’ criteria
Buyers want to get property information readily. Give me information. I want to see MLS descriptions and comparables and neighborhood information.
Have knowledge of the market: price and terms
Have knowledge of the area: schools, stores, traffic, taxes
Don’t rush the buyer so much he buys the wrong house
Buyers want you to point out features, including negatives
“The location is great on this one, but I’ll be honest: it’s just a rock with a hole for a door.”
Buyers don’t want you to always agree with them. Suggest options and give advice.
If you embody these traits for buyers, you will be well on your way to meeting their needs and selling more homes in the process. Win-win!
About Larson Educational Services:
Utilizing 30 years of real estate training and professional education experience, Florida real estate school Larson Educational Services is the premier provider of Florida real estate licensing, exam preparation, post-licensing, CAM licensing, mortgage loan originator licensing, and continuing education in Southwest Florida. Classes are available in Fort Myers, Naples, Sarasota, and online.
We hope you’re enjoying your holiday season with loved ones and friends. Larson Educational Services has been expanding this 2015 with new facilities in Naples and more class offerings.
If you’re already a LarsonEd student and you have the exam tutor (you’re on a roll) then check out our exam tutor explainer here for tips on how to use the software:
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