Price Versus Market Value In Real Estate

Price Versus Market Value In Real Estate

Price Versus Market Value In Real Estate have never been so far apart as they have been of late. Logic would dictate that they would be one and the same, but the reality of today’s real estate market is that they are often far apart. Market Value is considered to be the most probable price that a sufficiently marketed property would bring in an arm’s length transaction between a knowledgeable and willing seller and a knowledgeable and willing buyer with neither under duress to perform. Price can be what someone is asking, or what it sold at – both are “price”.

Market Value is established by Appraisers and Agents looking at recent sales of comparable properties. Agents can also look at comparable listings, what they will be facing in competition from similar properties offered for sale. The ultimate number used by lenders is that of the Appraiser, the one licensed to deliver an opinion of value. Appraisers use sold comps, a snapshot of the market looking backwards. Agents use a combination, see trends, and can adjust the price looking forward. This is an important difference in a moving market, up or down, and can lead to a disparity between Price Versus Market Value In Real Estate.

Price can be anything, but is usually what the Owner and Agent determine they can sell it for. That can be interesting at times. It is important that price has nothing to do with what someone paid for a property. If it were given to them would you expect them to give it to you? If they paid $200,000 more than it is worth today, will you pay them the $200,000? Of course not. Price is what the market will bear given the amenities, condition and location of the property.

We’ve seen some interesting examples of Price Versus Market Value In Real Estate lately. A property listing at 19.5% below an appraisal completed in the same week the property was listed … and it has generated no showings. The price is definitely right to attract a Buyer, but none have stepped up to date even at that great price! Another example ... a bank-owned property. Banks are quite cautious on their values when they sell, but in this case the accepted sales price was 7.5% less than the Buyer’s loan appraisal. Both of these current situations may seem to reflect a declining market because of the ratio of appraisal to price, but does it?

The market is stabilizing somewhat so maybe they are simply prices designed to get the property sold. That would be a willing Seller … certainly a willing Buyer ... but is it Market Value or a Low Price?

Sometimes prices seem too good to be true. Buyers steer clear of the “smoke’n deal” because they think there may be a problem. Conversely, Buyers at times avoid a high priced property when the Seller is just waiting for their offer. Occasionally, a mistake is made in pricing. If it is high, the property sits on the market. If low, the property jumps off the rack as the opportunity is easily recognized by active Agents and their Buyers.

Our Advice: Whether buying or selling, it is important to remember to make your Price Versus Market Value decisions based on your wants and needs, and your understanding of the Market. People buy and sell for many reasons, not all of them immediately apparent.

Don’t get hung up on Price, Comparable Listings and Sales, Rumors, or Anything Else that will keep you from making a sale or purchase that is a great deal for you and your circumstances. Price Versus Market Value In Real Estate ... like Beauty ... is in the eye of the beholder. See it through your eyes, not those of others.

Lisa Wetzel and Jim Valentine are real estate agents with RE/MAX Realty Affiliates in Gardnerville. They are short sale and foreclosure specialists and certified distressed property experts. Contact them at carsonvalleyland@hotmail.com. 775-781-5472 or 775-781-3704

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

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Maximizing Your Price As a Home Seller In Today's Market!

Selecting A Buyer’s Agent in Today’s Real Estate

How To Be A Good Real Estate Buyer

Lisa Wetzel and Jim Valentine are the authors of this blog. Lisa, Jim and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County, Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704. To Search for Homes go to: Carson Valley Listing Book or visit our website at www.CarsonValleyLand.com

How To Be A Good Real Estate Buyer

How To Be A Good Real Estate Buyer

Like everywhere, Real Estate Buyers in Northern Nevada come in many varieties, each special in their own right.  Some want Nevada income tax benefits, some land for their retirement, others their first home.  Each is serious in their quest, and deserving of a good agent to help them achieve it.  It is important to understand that being a good real estate buyer can significantly affect the outcome of their real estate experience by doing their part in the process.

First of all, be happy and nice.  There can be stress in the real estate process.  From the property selection, through negotiation, to the end of the escrow, stress can appear in many ways.  Frustration can occur, but anger need not be a part of it.   Work to a solution in a positive manner.  The solution is the goal, not the emotions or processes along the way.  They will be forgotten in time, but the outcome of the transaction will not.

Be ready for action, especially if you are buying a bank-owned or short sale.  You can wait weeks or months and then have just a few hours to respond.  Fair?  Not really, but it is the reality of dealing with those types of properties and getting upset won’t get your escrow closed.  A better course of action is to laugh at the absurdity and sign quickly.  Action is also important if the “right” property is suddenly available – don’t hesitate, act! 

You will incur costs along the way such as inspections.  Please, either pay them onsite at the time of the inspection, or, if you don’t close, immediately with the cancellation of your escrow.  The work was done for you, not the agent that likely ordered it for you.  It will save your agent from having to ask you for the payment on behalf of the inspector.  This keeps your relationship intact to move on together and find the right property.

A good real estate buyer is gracious in a home regardless of the occupants’ lifestyle.  It is their home, they are choosing to live in the manner that they live.  Nice interaction and chit chat can go a long ways to making you a likeable person, helpful during negotiation.  It is amazing how often this little part of the process becomes important, especially when there is a tight neighborhood and the Sellers want to leave their community with a good neighbor.

Good real estate buyers do what their agent asks of them.

There will be times when your agent needs you to do something to move things forward.  It could be a signature, a selection or decision.  Timing can be critical in a real estate transaction.  Do what is asked of you as expeditiously as possible in your own best interest.  Interestingly enough, one of the most impactive statements an agent can make on your behalf when asked to modify a transaction is, “They’ve done everything you’ve asked them to do!  That statement can only be made if you have, indeed, done so.  It is a powerful statement that can reap an assortment of rewards for you.

Our Advice: Be candid with your agent.  If you are holding back important information your agent can’t do a proper job for you.  Don’t worry about hurting your agent’s feelings if you don’t like a property, you are the Buyer!  Ask a lot of questions along the way.  You’ll get answers, and depending on their quality, will gain confidence in your agent.  More importantly, your agent will learn what you need/want to know, or what is important to you. That can help you both as you work together to get you what you want. 

Time and effort will be put forth by agent and Buyer to achieve the successful purchase and realization of the Buyer’s goal.  Be positive and the results will more likely be positive.

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

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

Passion ... Inspiration ... What Is Your Why?

Douglas Pop Warner Little Scholars Awards Three Scholarships to Graduating Seniors in Carson Valley

Vacant Lot Myths ... Northern Nevada Land

You Really Don't Have to Be A Jerk! ... More Tales From The Trenches!

Maximizing Your Price As a Home Seller In Today's Market!

Selecting A Buyer’s Agent in Today’s Real Estate

Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County, Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: Carson Valley Listing Book or visit our website at www.CarsonValleyLand.com

Selecting A Buyer’s Agent in Today’s Real Estate Market

Selecting A Buyer’s Agent in Today’s Real Estate Market

A recent call reminded us that Buyers, and Sellers, don’t always know how to select and use a real estate agent. The Buyer called on a listing, and it turned out he was calling every listing agent on a long list of properties to get information.  Commendable for the effort, but not an effective way to use agents for his benefit.

He was driving around neighborhoods looking at signs, taking phone numbers, and calling. Finding a home using that method takes much time, not to mention a lot of gas.  There are also many frustrating calls to make trying to connect with each agent to find out the price, bedroom count, and other important information such as distressed status.  Even with that time and effort, the hard working Buyer is never sure if he knows the market as the ideal property could have just been listed and the sign put up after the house hunter drove that street.

An agent can look at all of the properties in the Multiple Listing Service, MLS, at once and determine if the price is okay, there are sufficient bedrooms, etc.  The agent should interview the prospect to find out his wants and needs in a home so she can offer suggestions as to area and homes.  The agent can search the MLS with specific criteria to find the “hidden” gem.  Sometimes the idea home is right under everybody’s nose, and it goes unnoticed without professional perspective.  Cull the list with the agent and then drive around.

So how do you select an agent?

Looking at their ads everybody is number one at something while others are funny.  They are all attractive.  You will be working with this person or team for an extended period of time while you find a home, negotiate an offer, and navigate the escrow process, to the end goal, Home Ownership.  You don’t have to particularly like them, but you must have confidence in them.  Using your Aunt Betty’s grandchild’s wife’s sister’s neighbor isn’t the foundation for a successful relationship.  Don’t be bashful about interviewing for a good agent to represent you.  They should have real knowledge about what you intend to do.

An agent should be concerned about your wants and needs.  They should ask many questions so they understand what you are looking for, or dreaming of.  They should ask you about your financial status, if you’ve talked to a lender.  What can you afford and what do you actually want to pay?  They should stick to your price range, unless they find you what you want for less than you can afford.  They should explain the process they’ll use to get you the right home.  Different types of homes can require different techniques and timing.  They are there to help you, to do the work for you.  

Our Advice: Pick your agent wisely.  You can find them in the newspaper, from a sign, a referral, or online.  Regardless of how you connect, you should become confident that the agent hears you, understands you, is honest and can do the job for you.  There are many ways to work with an agent and many agents to work with.  Determine your goals and work with a good agent to accomplish them together. When you get a good agent don’t bounce around, you’ll end up with nobody working for you.

Remember, it is easy to search for homes in the newspaper, real estate magazines, and online.  Buyers these days often provide a list of homes to their agents who then research the properties’ details for them.  That way you can search and interact with your agent about what you find.  You’ll be involved in the process and when the right property comes along you’ll know it.

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

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

Passion ... Inspiration ... What Is Your Why?
Douglas Pop Warner Little Scholars Awards Three Scholarships to Graduating Seniors in Carson Valley
Vacant Lot Myths ... Northern Nevada Land
You Really Don't Have to Be A Jerk! ... More Tales From The Trenches!

Lisa Wetzel and Jim Valentine are the authors of this blog.  Lisa, Jim and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County, Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704.  To Search for Homes go to: Carson Valley Listing Book or visit our website at www.CarsonValleyLand.com

Maximizing Your Price In Northern Nevada

Maximizing Your Price in Northern Nevada

It’s Spring in Northern Nevada and you’ve decided to sell. What do you do to get the most out of your property? Start by putting your Buyer’s hat on and look at your home from a Buyer’s perspective. As you analyze your home consider the following three categories for the deficiencies: 1. Selling Condition, 2. Market Condition, 3. Enhanced Value.

Selling Condition means you’ve met or adjusted to have the home in minimum Selling Condition. If you have a multi-patched roof your home is lacking here. Other items to fix just to achieve Selling Condition can be the removal of debris on your lot, broken window seals, plumbing leaks, etc. If you are selling short don’t worry about it, the Buyer and lender will adjust the sales price for these deficiencies without cost to you.

Market Condition is simpler, mostly involving cleaning and decluttering. You’ve naturally got many personal touches around the house, it is, after all, your home. The Buyers aren’t coming to judge your lifestyle, they want to see how theirs will work in your home. Take down the family pictures and box the knicknacks, you’re moving anyway. Empty your overstuffed closet or they may think its smaller than it really is. Its Spring, you can pack up your winter clothes. Likewise, if your kitchen drawers are stuffed with used-once-a-year gadgets they’ll think the kitchen is too small. Declutter.

Clean well. Nobody wants to live in a dirty house even if their lifestyle is such that it will be dirty soon after they move in. They want to live in their own dirt. Remember to clean the outside, too. That is your first impression and you want it to count the first time. Should you stage your home professionally? Good stagers do wonders and can yield great results, but they come with a price. Is your price point such that you can absorb their cost and profit from it?

Getting your home to Selling or Market Condition will add value, but there are times when you can Enhance Value. This can get tricky. Are you better off putting in new carpet or giving an allowance? Should you give an allowance or reduce the price? When you consider any change, or addition to sell your home question whether it will get you a higher sales price. If not, don’t do it. Your home will sell by its features, location, character and … price. Price sells more than anything else in this market. If you put money in a remodel be sure to figure what it will return. There can be a great return, but if you are trading dollars, don’t do it. Your agent can help you with your analysis.

Our Advice: You can spend months or longer getting your home perfect, but what is perfect to the Buyer? We’ve seen lovely homes in great shape that the Buyer is going to “gut”, do a major remodel on. Keep your eye on your objective. What are you going to do after you sell? If you are buying elsewhere will you lose a buying opportunity while you take the time to try to get a little more out of the home you are leaving? Selling? Ready…Fire…Aim! Get it ready and get it sold!

An increase in either rates or prices can affect your next purchase and offset any gain you may have worked for.
When it comes to choosing professionals to assist you with your real estate needs … Experience is Priceless! Lisa Wetzel & Jim Valentine, CDPE, SFR, RE/MAX Realty Affiliates, 775-781-5472. carsonvalleyland@hotmail.com, www.carsonvalleyland.com
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Lisa Wetzel and Jim Valentine are the authors of this blog. Lisa, Jim and Jessie are experts in Carson Valley , Carson City and the tri-county area of Douglas County , Carson City and Lyon County. Call our team anytime at 775-781-5472 or 775-781-3704. To Search for Homes go to: Carson Valley Listing Book or visit our website at www.CarsonValleyLand.net or www.CarsonValleyLand.com