We've said it time and time again. When selling your Lake Havasu home, you need to price it appropriately. That means looking at other houses that have sold in your neighborhood within the last 30-60 days to compare size, amenities and price. The reality of Lake Havasu home sales isn't location, location, location...it's price, price, PRICE!
Just because you put $75,000 into a brand new gourmet kitchen or need $75,000 to put down on a new home but you owe $250,000 on your Lake Havasu home (which happens to be what it's worth) doesn't mean that you can ask $325,000 and automatically expect to get it. The reality of Lake Havasu home sales is that it is the market that determines the price. In other words, buyers don't care what you owe, what you've put into it or what you believe you "need" to get out of it. They will only pay what it's worth. Also, banks will only fund what it's worth. So, if a buyer has to get any kind of funding to purchase your Lake Havasu home, the bank will only allow them to borrow what it's worth on the current market.
Before you put a ton of money into upgrading your kitchen, tearing out the backyard or ripping down a wall, you need to consider what your neighbors are doing to their Lake Havasu homes. After all, you don't want to upgrade yourself out of your area's price range, do you? It's also important to keep in mind that you are most likely not going to get back the same amount of money you invest in upgrades. For example, according to MSN Real Estate, the home improvement project that yields the highest return for a Lake Havasu home is replacing the front door. The return on investment (ROI) for this project is 73%. Also, a mid-grade kitchen or bathroom repair yields a higher ROI than an upscale one. Unless other homes in your neighborhood offer only gourmet kitchens, the mid-grade route will do just fine when you sell it.
When it comes to the the reality of Lake Havasu home sales, don't get caught up by how much you owe or how much you need. Overpricing your home may lead to months of it sitting on the market without an offer. Talk to your Lake Havasu real estate agent to find out what price you should list your property at so that you have a successful transaction in a realistic time frame.
Brenda & Willie Gonzalez, RE/MAX Prestige Properties, Lake Havasu real estate
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Originally posted on our Lake Havasu real estate blog here: http://lakehavasulifestyle.com/reality-of-lake-havasu-home-sales/.