The three factors to consider in selling your property are location, condition and price... and they are all related.
Your property's location and setting influences its value. Things such as:
- Public transportation, parks, stores, churches and schools.
- Quality and consistency of neighbourhood planning.
- Future development plans and local zoning.
A property inside a quiet subdivision sells for more than the identical property on a busy street. Remote areas typically sell for less than close-in area. Views, streams and trees usually enhance value. Obviously you have no control over location when you sell. The only time you can control location is when you buy.
Features include the:
- Style, layout, size, age and quality of construction of the buildings.
- Size, shape, privacy and landscaping of the yard.
The features of a property are pretty well set when it is purchased. However, remodeling the house, finishing the basement, building a deck, upgrading the landscaping and maintaining or building fences can enhance the features.
Condition is the appearance and maintenance of the Property:
That first impression – you only get one chance to make a first impression.
Cleanliness, quality and appearance of paint, fixtures, floor coverings, windows, kitchen cupboards, bathrooms. To get top dollar these items must be updated.
The general overall condition of main systems such as foundation, siding, roof, decks, furnace, hot water tank, electrical system, plumbing, basement, garage, landscaping, fences, and support buildings. Upgrading the main systems increases the value of a property.
Deferred maintenance always has a negative influence on condition and reduces the value of a property. As an owner you have nearly complete control over the condition of a property. New properties enjoy a marketing edge over resale properties because they are shiny and clean. Builders enhance their appeal by offering properties that are clean, bright and decorated in current colours and materials.
3. Market Conditions
Notwithstanding the condition or desirability of your home, its value will be affected by current market conditions. There are three broad market conditions that a seller must be aware of when setting the price of his property:
- A Seller’s Market
- A Balanced Market
- A Buyer’s Market
Three indicators of market conditions are:
- Absorption Rate
- Sales-To-Listing Ratio
- Percentage Change in Price compared to the previous time periods
Our goal is to make your property as close to a model property as possible, while being sensitive to costs. You have nearly complete control over condition and you can increase value and decrease marketing time by being sure your property is in the best possible condition.
Pricing Your Home
If IBM stock is trading between 104 and 108, it does no good to insist on selling at 112. Likewise, your property must be priced within the appropriate range. To determine that value range one must consider:
- The asking and selling prices of comparable properties.
- Number of properties currently on the market.
- Number of people looking to buy.
- The state of the local and national economy.
- Current mortgage rates.
The best way of establishing an accurate range of value for your property is to have your REALTOR® prepare a Maximum Price Analysis (MPA). This will give you a detailed and accurate overview of the current market.
The Team uses their experience and expertise to fine-tune the price by taking into consideration all of these variables.
We must actually "sell" your property three times: first to the Realtors, then to a buyer and finally to the bank. When a Realtor shows your property they will show many properties in the same price range and they are required to give the prospective buyer an objective opinion of the value of your property. The buyer is more subjective and compares the feature and benefits of your property to those of other properties in the same price range. The appraiser is the most objective and compares age, size and cost-identifiable features in your property against other properties that have sold.