Home Selling in Winchester>Question Details

Kat, Home Seller in Winchester, CA

what % over market value can I sell my home?

Asked by Kat, Winchester, CA Tue Sep 7, 2010

my home value low $164000 medium $205000 and High is $243000

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11
Kat
You have some very good answers to your question. I am thinking that perhaps you actually want different information...
How can I get the most money for my home when I sell?

Here are some basic rules that will help you:
1. Most home sellers do not properly prepare their homes for sale. One of main reasons that home sellers hire a Realtor is to find out what they can do to their home with limited time and money to make it the most marketable.
2. It is not how much money or time you spend, it is where. The benefit to hiring a Realtor to sell your home is that they know the local market, what is on the market, and what buyers want.
3. Declutter - space is money. Get rid of everything that you do not need.
4. Clean - as you never have before, including windows, light fxtures....maybe hire a professional cleaner.
5. Paint - all must look freshly painted.
6. Staging touches - I give my clients a staging checklist. After doing all the above, add, fresh flowers, flowering plants, expensive looking and/or new towels in the bath, linens on the dining table, etc.

To get the most money for your home it needs to look the very best in the market.
So YOU go and look at the homes that are your direct competition. Objectively compare your home to the others. Most people do not take the time to make their home stand out.

Hire a home stager. I have a listing that will be the most expensive home per square foot sold in the last year in the area, and it is an almost perfect house...and we hired a home stager to put on the finishing touches.

Have professional photographs taken.
You should have a properyty website...your Realtor should do that. Instead of printed flyers, invest in the professional photography and the website.

Look online at your competition. There is a big difference in quality marketing. Your home needs to outshine the rest, period.

Finally, look at the link below. Your market is trending upward, up 9.3% year to year in the price per square foot. That means that if the market is really going up the appraisals are going to be a problem, as appraisals use only SOLD properties, which, because they are sold, means they were purchased when the prices were lower.

If your goal is to really maximize the price, you want to price slightly UNDER the actual value, say 2-4%, then hopefully attract multiple offers that will boost you over the top. The appraiser will take note of a property selling at the very top, or over, value, if they know that two or three other people thought that your property was worth more than it was listed.

Good luck.
2 votes Thank Flag Link Tue Sep 7, 2010
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
Contact
Hi Kat,
It really depends upon what your market value really is.
If it is a track home, I would find it hard to believe you have an $80,000 range.
If it is a custom or ranch home this is easily possible.
In answer to your question,....
I would say you can try for as much as 5% over market value.
If you have an aggressive broker in your corner that would be a plus.
While someone said 99% of homes in your price range are financed this is simply not the case in California.
Here in Southern California Cash Buyers are buying up 25% of the the homes.
High down buyers such as 50% occur on occasion as well.
These buyers at times may purchase you home over market value if they see value in the home that they desire.
I wish you the very best in your Home Sale

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
harold@socalhomesrealestate.com
http://www.socalhomesrealestate.com
California Department of Real Estate License # 01312992
1 vote Thank Flag Link Tue Sep 7, 2010
Not much.

99% of buyers in your price range will need financing. The mortgage company will require an appraisal. Most contracts we see and write have an appraisal contingency stating that the buyer can back out if the house does not appraise.

If you were a buyer, how much more than a house is worth would you be willing to pay?

That said, those computer generated ranges you are referring to can be very wrong. Ask 3 local agents to give you an idea of value and their thoughts on marketing the home. You are more llikely to get a true understanding of the value this way.
1 vote Thank Flag Link Tue Sep 7, 2010
Maureen Fran…, Real Estate Pro in Birmingham, MI
MVP'08
Contact
Hi there - I would agree that the spread that you are presenting here is hard to understand. I wonder whether this is coming from an internet source or from an agent? The right start is a sound pricing analysis and an experienced local agent can help you with that. The result will be market value price range, but it will not be so broad. Remember that any analysis is only as good as its input, so the quality of the comparable data matter greatly.

So let's assume you have a new starting point - with that done, you should not expect to get a penny over market value. Consider the range - the new one - to be the possible market value. Expect to get no more than the upper value, more likely in the mid point and very possibly at the low end. As far as pricing your home, I would recommend that you price no higher than the midpoint, and it would be quite smart to price at the low end, even to tuck just under. Once you and your agent have agreed on a price, then I always suggest seeing where that price puts you relative to active comparables as a final step - you want your listing to "pop" - if your price accomplishes that, great. If not, reflect and consider an adjustment so it does.

Good luck,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Tue Sep 7, 2010
Hello Kat and thanks for your post.

A price spread of $80,000 from low to high is significant, and constitutes 50 percent at the low level and 30 percent at the higher level. To be frank, a variation so great is not really meaningful to you as the home seller or to any buyer. So, as Ryan suggested, work with a qualified Realtor in your area to obtain the sales comparables for your area and to determine the best price to sell your home. If you are looking only for a "value" for your property, an appraisal can give you a more accurate value of your property's worth.

Finally, here in California, sellers are seldom able to get any "%" over the "market value." Market value is determined by what other buyers will pay for similarly sized and appointed homes in the general area. So, if your home is properly priced, you might get slightly more than the list price for the home, but buyers are seldom interested in all but the most desirable areas to pay more than what everyone else is likely to pay for similar homes. Again, work with a great Realtor, and you'll be able to determine a price and marketing program for your home!

Sincerely,
Grace Morioka
Area Pro Realty
1 vote Thank Flag Link Tue Sep 7, 2010
Hi Kat,

Looking at the numbers you posted I can only assume you have gotten these from a generic formula produced by a website only. Talk with a couple of agents to get a professional opinion as to the market value in your area, also take a look at other homes in your neighborhood that are close in size / condition.
0 votes Thank Flag Link Tue Sep 7, 2010
Kat
66% of homes are sold at market value. The best thing to do is get a Licensed Real Estate Agent and they will show you the numbers and let you know what the home will sell for. Only about 15% of the homes sell above market value and most of them have many extra items or are Custom Homes. A mortgage company will do an appriasal and they will only lend on the appraised value.
0 votes Thank Flag Link Tue Sep 7, 2010
Kat: You need an accurate Broker Price Opinion or appraisal to assess the value of your home. Buyers who will be making offers on you home will be getting appraisals through their lenders. Banks will not loan money to a buyer over the appraised value!

Cash buyers are very savvy and will be analyzing the market closely with their agents and even though they will not have an appraisal contingency, they will usually not pay more than what the comparable homes recently sold for. Cash buyers and investors are looking for deals and want to pay less than market value.

The main reason that you will have trouble selling your home for more than other homes that are the same square footage and the same number of bedrooms is that your home will NOT APPRAISE for more than the HIGHEST RECENT SOLD COMPARABLE.

Your best bet is to wait if you really want to get more for your home than it is worth right now.

~~~~~

~~~~~
Web Reference: http://www.soreal.biz
0 votes Thank Flag Link Tue Sep 7, 2010
Right now there are not too many placesin the country where homes are selling over market value. You need to assess what your home is worth in todays market and should base your asking price on that. Any good licting agent can come iin and give you a broker price opinion and let you know what the market value is in todays market, what you should ask for your home and what you should expect to get for it.

Good luck with your sale
0 votes Thank Flag Link Tue Sep 7, 2010
Kat,

You received two good answers to your question so far. You will not ever sell your home over "market value" the price someone pays for your home is the market value. For an explanation on the different valuations of any property you can read my blog post "Understanding the Differing Values of Your Home. Link below.
Web Reference: http://wp.me/pufDb-2c
0 votes Thank Flag Link Tue Sep 7, 2010
Not sure were you are getting that information from, but an agent can give you a much more accurate price for your home. Online generally sites use an automated vale based solely on county records. 9 k is a large range, a cam from an agent should be able to target similar sales in your area and give you an idea of an approximate sale price
0 votes Thank Flag Link Tue Sep 7, 2010
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