Only Invest Good Dollas in Your Home – by Ashley Leigh

25 06 2010

You can go in either direction on Route 15 and find stunning outlet malls.  Both malls offer merchandise at greatly reduced prices.  These items are usually considered “seconds”.  The “second” quality merchandise may exhibit flaws like uneven seams or pulled stitches, and capitalizes on the slightly lower quality in exchange for a lower price.

Like clothing, a home being offered for sale with obvious flaws also invites a lower price.  Homebuyers, like clothing shoppers, quickly become aware of needed repairs, and then begin scrutinizing the home for other defects.

If you plan to sell your home and expect to receive full price, be certain that all needed repairs are completed before the “For Sale” sign goes up.  If you don’t, you should expect to receive about $2 less for each $1 in needed repairs. 

Protect your investment by asking me for advice.  I will walk through your home as a buyer would and draw your attention to apparent defects that might attract attention.  They may range from a cracked windowpane to carpet in need of replacement.  No matter what the flaw may be, if it attracts attention, it also becomes a point on which the buyer may negotiate a lower sale price.

Furthermore, I can guide you further by providing marketing tips to make your home more attractive to buyers.  Even more importantly, I can Stage™ your home so it is showcase quality. 

Remember that by offering a “first quality” home, you may expect to receive the best price.

Not correcting what are usually cosmetic flaws and not taking advantage of my Staging™ skills can result in thousands of forgone profits.

Remember playing Monopoly, the real estate game?  Sometimes, towards the end of the game, a player might even sell one of his or her properties to another player for half-price to raise some cash.

In real life, you would never accept half-price for your home. Or would you?  For example, what if you owed $360,000 on a home you wanted to sell for $400,000?  After inspecting your home, a prospective buyer offers to buy it at a discount of 5% off the asking price.  Although you would like to receive your full asking price, you accept.  You have just sold your house for half price!  Here’s why.

Giving a discount of 5%, you are agreeing to sell for a price of $380,000.  You still owe $360,000.  That means you will receive $20,000 cash in hand at the closing rather than the $40,000 you had anticipated.  In other words, you sold your home for half of your anticipated profit!

Your equity . . . the difference between the sale price and what you owe . . . is what you receive at closing.  It can easily slip through your fingers at the hands of a buyer who is good at negotiating.

Perhaps one of the most valuable roles I play on your behalf is that of negotiator. When you list your home, you are empowering me to represent you in any negotiations that take place.  You can expect the best from me and reap the financial rewards.

Now, please do not interpret that to mean you should pour too many dollars into your home.

If you’ve outgrown your present home, there are two appropriate questions to ask yourself.  Should I add on to my present home, giving me the needed extra room or amenities, and allowing me to stay where I am?  Or, should I sell and purchase another home that already has the features and size desired?

If you are happy with your present location and surroundings, consider building an addition.  This has obvious advantages, and one not-so-obvious disadvantage . . . “over-improvement.”

Over-improving your home means two things:  (1) that you have spent more money for the improvement than you would get in return if the home were sold; and, (2) that by making the improvement, your home now has substantially more space, rooms or amenities than similar homes in your neighborhood.  If that is the case, the ultimate value of your home may be held down by the smaller homes around you with fewer amenities. 

In other words, by improving in ways not consistent with the existing homes in the neighborhood, the sale price of your home could ultimately be held down when you do sell.  One way to make your final judgment is to ask me to suggest a fair sale price, both with and without the improvements.  One invaluable service I provide is my knowledge of the neighborhood that may disclose other factors pertinent to making a wise decision.

Selling your home at the highest possible price given market conditions requires a great deal of experience and knowledge.  I have both!  Call me today.

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