Setting the list price for your home involves evaluating various market conditions and financial factors.

During this phase of the home selling process, your REALTOR® will help you set your list price based on:

• Pricing considerations
• Comparable sales
• Market conditions
• Offering incentives
• Estimating net proceeds

Pricing considerations
In setting the list price for your home, you should be aware of a buyer’s frame of mind. Consider the following pricing factors: If you set the price too high, your house won’t be picked for viewing, even though it may be much nicer than other homes on the street. You may have told your REALTOR® to "Bring me any offer. Frankly, I’d take less." But compared to other houses for sale, your home simply looks too expensive to be considered. If you price too low, you’ll short-change yourself. Your house will sell promptly, yes, but you may make less on the sale than if you had set a higher price and waited for a buyer who was willing to pay it.

TIP: Never say "asking" price, which implies you don’t expect to get it.

Using comparable sales
No matter how attractive and polished your house, buyers will be comparing its price with everything else on the market. Your best guide is a record of what the buying public has been willing to pay in the past few months for property in your neighborhood like yours. Your REALTOR® can furnish data on sales figures for those "comps", and analyze them for a suggested listing price. The decision about how much to ask, though, is always yours.

The list of comparable sales a REALTOR® brings to you, along with data about other houses in your neighborhood presently on the market, is used for a "Comparative Market Analysis (CMA)." To help in estimating a possible sales price for your house, the analysis will also include data on nearby houses that failed to sell in the past few months, along with their list prices. This CMA differs from a formal appraisal in several ways. One major difference is that an appraisal will be based only on past sales. In addition, an appraisal is done for a fee while the CMA is provided by your REALTOR® and may include properties currently listed for sale and those currently pending sale. In a normal home sale, a CMA is probably enough to let you set a proper price.

A formal written appraisal (which may cost a few hundred dollars) can be useful if you have unique property, if there hasn’t been much activity in your area recently, if co-owners disagree about price, or if there is any other circumstance that makes it difficult to put a value on your home.

TIP: If you do order a market value appraisal, make it clear you don’t need an elaborate, or full narrative report — the kind that’s complete with photos of the house and neighborhood, a map specifying the site, and floor plans is sufficient.

Consider market conditions
A Comparative Market Analysis (CMA) often includes Days on the Market (DOM) for each comparable house sold. When real estate is booming and prices are rising, houses may sell in a few days. Conversely, when the market slows down, average DOM can run into many months. Your REALTOR® can tell you whether your area is currently a buyer’s market or a seller’s market. In a seller’s market, you can price a bit beyond what you really expect, just to see what the reaction will be. In a buyer’s market, if you really need to sell promptly, offer an attractive bargain price. 

Offering incentives
Some sellers list at the rock-bottom price they’d really take, because they hate bargaining. Others add on thousands to the estimated market value "just to see what happens." If you want to try that, and if you have the luxury of enough time to feel out the market, sit down with your REALTOR® and work out a schedule in advance. If there haven’t been many prospects viewing your home after three weeks, you may need to lower your list price. If that doesn’t bring any prospective buyers, you may need to lower your list price again. Plan on doing that regularly until you find a level that attracts buyers. Make a written schedule in advance, before emotion takes over and you’re tempted to dig your heels in.

Sometimes cash incentives are as effective as lowering the price, especially in the lower price range where buyers may be "cash poor." You may offer to pay some or all of a buyer’s closing costs and discount points required by the buyer’s lending institution. If you haven’t had much traffic through your house and you’re in a hurry to sell, you may want to add the offer of a bonus to the selling broker, in addition to their commission. An example of the wording for such an offer may be "to the broker who brings a successful offer before Christmas."

Estimating net proceeds
Once you’ve been given an estimate of market value by your REALTOR®, you can get a rough idea of how much cash you might walk away with when the sale is completed. This can be particularly useful as you start looking for another home to buy. From the estimated sales price, subtract:

• Payoff figure on your present loan(s)
• Broker’s commission
• Any prepayment penalty on your mortgage
• Attorney’s fees, if any
• Unpaid property taxes

In addition, your REALTOR® can tell you whether local customs or rules dictate that the buyer or seller to pay for the following items:

• Title insurance premium
• Transfer taxes
• Survey fees
• Inspections and repairs for termites and the like
• Recording fees
• Homeowner Association transfer fees and document preparation
• Home protection plan
• Natural hazard disclosure report

As far as closing costs are concerned, you and your eventual buyer may agree on any arrangement that suits you, no matter what local practice dictates. Your REALTOR® will assist you in estimating what your final closing costs will be.

More articles:
Myths and facts about appraisals
How to read housing market stats
How to price your home
Set your list price

Daily Real Estate News | August 20, 2007

Landscaped Lots ‘Very Important’ to Buyers

The housing downturn has many builders, real estate agents, and home sellers paying close attention to landscaping as a way to generate buyer interest and boost sales prices.

Research by the NATIONAL ASSOCIATION OF REALTORS® says landscaping is "very important" to almost 20 percent of buyers, and University of Washington-Seattle researcher Kathleen Wolf says landscaped lots sell for about 7 percent more.

The exact amount depends on location, with Palm Beach, Fla.-based real estate agent Nancy Macaluso noting that palm trees and flowers can boost a home’s price by 10 percent to 15 percent in comparison to the sales prices of properties without such landscaping.

However, most appraisers and tax assessors do not include landscaping in their valuations; and there are no standards governing how arborists and landscape experts calculate a plant’s value.

Still, home owners are shelling out hundreds of dollars for yard appraisals as part of their marketing strategies, and builders are expanding their landscaping budgets.

Experts say sellers would be wise to maintain their yards, as unkempt trees and shrubs can conceal views that have the potential to boost sales prices by tens of thousands of dollars.

Source: Wall Street Journal, June Fletcher (08/17/07)

75% COMMISSION PLAN TO REALTORS IN SOUTH FLORIDA…ASK JAISON!

-Based out of PA, Precision Realty, LLC is offering 75% commission plan available to South Florida realtors.

www.PrecisionRealtyFL.com

I’ve posted a few bulletins about a new single home development coming on Tomlinson Rd. right off Haldeman Ave (not too far from Shoprite).  The listing agent informed me there is another agent that is holding 60 deposit checks from his/her buyers, although the listing agent is not taking deposits for the 2nd phase of development at this time….maybe in couple wks. 

So that’s why I’m posting this since I’m sure someone may have a friend/relative or whoever that wants a home in Philly with a reasonable commute to work/downtown.  Since there’s ONE AGENT out there HOLDING 60 DEPOSIT CHECKS WITH THEM, it is a FIRST COME/FIRST SERVED basis for getting into that development.

Once contacting me, I’d greatly appreciate not talking with any other Realtors out there.  Unfortunately in this business, there is fierce competition/shady unprofessional agents trying to steal buyers from others. I’ve already had this experience with 2 other unethical Realtors calling my personal buyers and trying to sweet talk them/take them away from me to steal the commission (totally illegal & open to facing legal action). Fortunately people that deal with me know I’m honest. So I’d greatly appreciate business loyalty. Thanks!

Jaison

RE/MAX ACTION REALTY

Cell# 215-421-0031

Office: 215-358-1100

www.JaisonMathai.com

As a homeowner, you can play an important part in the timely sale of your property.

When you take the following steps, you’ll help your RE/MAX Action Realty Associate sell your home faster, at the best possible price.

1. Make the Most of that First Impression
   A well-manicured lawn, neatly trimmed shrubs and a clutter-free porch welcome prospects. So does a freshly painted – or at least freshly scrubbed – front door. If it’s autumn, rake the leaves. If it’s winter, shovel the walkways. The fewer obstacles between prospects and the true appeal of your home, the better.
2. Invest a Few Hours for Future Dividends
   Here’s your chance to clean up in real estate. Clean up in the living room, the bathroom, and the kitchen. If your woodwork is scuffed or the paint is fading, consider some minor redecoration. Prospects would rather see how great your home really looks than hear how great it could look, "with a little work."
3. Check Faucets and Bulbs
   Dripping water rattles the nerves, discolors sinks and suggests faulty or worn-out plumbing. Burned out bulbs leave prospects in the dark. Don’t let little problems detract from what’s right with your home.
4. Don’t Shut Out a Sale
   If cabinets or closet doors stick in your home, you can be sure they will also stick in a prospect’s mind. Don’t try to explain away sticky situations when you can easily plan them away. A little effort on your part can smooth the way toward a closing.
5. Think Safety
   Homeowners learn to live with all kinds of self-set booby traps: rollerskates on the stairs, festooned extension cords, slippery throw rugs and low hanging overhead lights. Make your residence as non-perilous as possible for uninitiated visitors.
6. Make Room for Space
   Remember, potential buyers are looking for more than just comfortable living space. They’re looking for storage space, too. Make sure your attic and basement are clean and free of unnecessary items.
7. Consider Your Closets
   The better organized a closet, the larger it appears. Now’s the time to box up those unwanted clothes and donate them to charity.
8. Make Your Bathrooms Sparkle
   Bathrooms sell homes, so let them shine. Check and repair damaged or unsightly caulking in the tubs and showers. For added allure, display your best towels, mats and shower curtains.
9. Create Dream Bedrooms
   Wake up prospects to the cozy comforts of your bedrooms. For a spacious look, get rid of excess furniture. Colorful bedspreads and fresh curtains are a must.
10. Open up in the Daytime
    Let the sun shine in! Pull back your curtains and drapes so prospects can see how bright and cheery your home is.
11. Lighten up at Night
    Turn on the excitement by turning on all your lights – both inside and outside – when showing your home in the evening. Lights add color and warmth, and make prospects feel welcome.
12. Avoid Crowd Scenes
    Potential buyers often feel like intruders when they enter a home filled with people. Rather than giving your house the attention it deserves, they’re likely to hurry through. Keep the company present to a minimum.
13. Watch Your Pets
    Dogs and cats are great companions, but not when you’re showing your home. Pets have a talent for getting underfoot. So do everybody a favor: Keep Kitty and Spot outside, or at least out of the way.
14. Think Volume
    Rock-and-roll will never die. But it might kill a real estate transaction. When it’s time to show your home, it’s time to turn down the stereo or TV.
15. Relax
    Be friendly, but don’t try to force conversations. Prospects want to view your home with a minimum of distraction.
16. Don’t Apologize
    No matter how humble your abode, never apologize for its shortcomings. If a prospect volunteers a derogatory comment about your home’s appearance, let your experienced RE/MAX Action Realty Associate handle the situation.
17. Keep a Low Profile
    Nobody knows your home as well as you do. But RE/MAX Action Realty Associates know buyers – what they need and what they want. Your RE/MAX Action Realty Associate will have an easier time articulating the virtues of your home if you stay in the background.
18. Don’t Turn Your Home into a Second-Hand Store
    When prospects come to view your home, don’t distract them with offers to sell those furnishings you no longer need. You may lose the biggest sale of all.
19. Defer to Experience
    When prospects want to talk price, terms or other real estate matters, let them speak to an expert – your RE/MAX Action Realty Associate.
20. Help Your Agent
    Your RE/MAX Action Realty Associate will have an easier time selling your home if showings are scheduled through their office.

These are good friends of mine from over the years. If anyone is thinking about buying a benz or bimmer, please let these guys know I sent you:

Mercedes:

Kim Rodriguez
R & S Imports
404 Pennsylvania Ave.
Ft. Washington,PA 19034
215-646-7700

BMW:

Joe Giasone -been in business over 20 yrs
West German BMW
500 W. Pennsylvania Avenue
Fort Washington, PA 19034
(215)643-3322 

Use a REALTOR(R).

Some homeowners think that selling their own home will save money and give them an advantage over the Realtor-using majority. Before you start down this complicated path, here are a few reasons why using a real estate professional is important: 1) You will be drastically limiting your exposure to potential buyers, which means it can take between 10 and 15 times longer to sell your home. Houses that take a long time to sell usually sell for less because buyers believe there must be something wrong with them. 2) Most buyers find negotiating with sellers extremely awkward, and therefore avoid For Sale By Owner situations. 3) Most buyers use a Realtor in their home search, and most buyers’ agents will typically not work with FSBOs because they will not be paid. This means you will have to offer a selling commission to attract buyer’s agents, which will cut into your expected "savings." 4) Lack of negotiating experience can result in a lower selling price, or worse, a bungled contract and possible lawsuits. It is probably unwise to pit your negotiating skills against those of experienced professionals. 5) If you plan to use a lawyer to help you negotiate, your lawyer’s fees could be considerably higher than a Realtor’s commission. Unlike Realtors, lawyers do not get paid for proactively representing your best interests or mediating delicate situations. 6) You only pay a commission to your Realtor if they successfully sell your home at a price you are happy with.

In many parts of the country, sellers have finally gotten the message: They can’t be so stubborn about their asking prices. For buyers, now’s when to find deals.

Bugatti Veyron - one of the greatest achievements in automotive history

Fla.: Legislature Seeks to Eliminate Property Tax

In an attempt to solve one of the state’s highest-profile problems — high property taxes — the Florida House of Representatives this week proposed eliminating property taxes in favor of a higher state sales tax.

The plan would leave millions of Floridians without a property tax bill, but would require everyone, including tourists, to pay a statewide sales tax rate of 8.5 percent, the highest in the United States.

The increased sales tax would generate an estimated $7.78 billion in the first year and would be shared among local governments and school districts. A distribution formula has not yet been developed.

Some government officials think the proposal will create financial problems on the local level.

"They are substituting state government for local government," says Polk County Commissioner Bob English, who said the roll-back would take $50-million from his budget. "It’s going to be a disaster. It’s dumb."

Source: St. Petersburg Times, Alex Leary and Aaron Sharockman (02/22/2007)