Tuesday, March 27, 2007

We can't get "Our" price ... what can we do?

We can’t seem to get the price we need … what can we do?

We’re glad to see that you said “…the price we need”. Most Sellers get in their head a price they want and they are reluctant to come off of that price. Given that you have a need, the first thing to do is understand why you need your price. Is your loan such that you would have to write a check to close escrow if you sold at market price? Is it due to buying too high, or did you refinance in the past couple of years and take your profit? If you’ve already taken your profit via a refinance then your “need” must be interpreted with a dose of reality. If you can’t pay to close then you might consider waiting for the market to catch up to where you need it to be. You can rent in the interim to assist with the cash flow while you get on with your life.

If your need is based on looking at the market where you are going and determining what it will take to buy the home you want there then you should consider other factors. What is the difference in pay you will receive? The difference in the cost of living? The size and quality of the home you can afford or want, etc.? Someone moving here from Mississippi has as much “sticker shock” looking at property as you would have moving from here to downtown San Francisco. Real estate should be a factor when deciding to move to a new area – whether you are moving for a job, retirement, or to be closer to family – your real estate ownership should be assessed from the outset.

Our Advice: Market value is what a willing Buyer and willing Seller will agree to. To get a higher price for your home you must find ways to have a Buyer pay more for it. This can be done in several ways. The first is to have absolute quality, maintenance, design, amenities, and feel. Some Buyers will pay more for quality. If you can’t reasonably be the best product on the market, then offer terms that will appeal. You can offer to carry a part of your sales price for up to six months without interest and not have a negative tax consequence (see your tax advisor). Some Buyers will consider the interest savings and offering accordingly.

A lease/option is a good way to get a higher price with interim cash flow if you don’t need your equity immediately. You agree to a price today that they will pay in 12-18 months. Option consideration is paid up front, the property is leased for a fair market value … or more. Each transaction is unique, but the benefits can be good for both parties. You will get a higher price with a lease option as both parties are looking at a future market price to agree on with their negotiations. A lease option is actually a lease and an option, two separate agreements. Your real estate professional can help you with this process as it is complex and must be done correctly for the benefit and protection of all parties.

The basics always apply: remove the clutter, remove the barking dog(s) for showings, open the blinds, turn on lights, remember aroma-selling techniques (remove the fish dinner garbage and replace with pleasant smells), clean your house, and pick up the dirty underwear.

When it comes to choosing professionals to assist you with your real estate needs… Experience is Priceless! Lisa Wetzel & Jim Valentine, RE/MAX Realty Affiliates, carsonvalleyland.com, 775-781- 5472

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