When buying or selling a home, consumers go through very similar feelings. The Buyer has their famous question, "How much can I get off the price of this home?" The Seller, in their own form asks the same question, "What is the maximum amount can I get for my home?" My question back to those buyers or sellers is really not about the price you are going to end up with when the dust settles, but more so what is the value of the home someone gets when they buy it. The value of the home is far more important than the list price.
Let's dive into it a little further.
When a home is first listed for sale, it is busy. Showings all over the place, the owners are barely even home at some times. A statistic from the National Association of Realtors, an organization that tracks statistics on home buyers and sellers, reports that a home stands a 40% chance of selling in the first 30 days. After that first 30 days, their chances of selling go down somewhere around 12%.
This is where value vs price comes into play.
Value can be anything. A new kitchen, a big backyard or a floor plan that just plain kicks ass. Value is different things to different people. When a good home comes on the market that has value and is priced to sell, it may very well sell for full price or over. This is because someone looking at that home, someone who has been around the block looking, has seen a ton of homes and has seen the value in this home in not only what it offers, but also in the price. They know that to secure this home, with tons of value, they need to make a great offer to the sellers, otherwise they may lose it.
See, the best homes that come on the market, usually are gone in the first 1-2 weeks, if not sooner. If they offer good value for their asking price, they get snapped up rather quickly. That is also why it is important that you are crystal clear on exactly what you are looking for when buying a home, or advertently, you know your competition inside out when listing you home for sale.
Now, the homes that don't sell in the first 30 days, what's wrong with them? The challenge they are having is they are not offering enough value for their money. People have come through their doors, as they have in many other homes, and made a decision that for the asking price, they have seen (or think they will find) better value for their money. This is when people do not make offers and homes seem to get price reductions or sit on the market for a longer period of time. These are typically the homes where buyers are able to negotiate a bit more wiggle room than the new to market homes.
In the trials ad tribulations of selling and buying homes, value vs price is a critical factor that can determine you maximizing your success. And know you know!
Until next time,