Saturday, March 31, 2007

Is Your House Worth It?

There are two prices when it comes to selling a house. There is the "asking or listing" price and there is the "value or worth" price. Let me explain the difference between the two.

Have you even been to the grocery store to buy a can of something and you pick up one can and it has a dent in it? What do you do? Most buyers will put the dented can back on the shelf and chose another can which is not dented. Why? Although both cans have the same product in it, to the buyer they are not worth the same. What will it take to sell that dented can? A price reduction. This is the same for anything on sale including houses.

When listing a house, Realtors will give homeowner comparables or comps of similar homes which are presently on the market or have sold within the past few months. Homeowners decide what to set the price at. Some homeowners have a certain amount of money they would like to get out of the house sale. Others look at the comps and pick a price they are comfortable with. This is the asking price.

The value price is what the house is worth to potential buyers. Buyers want a house which is the best value for their money. Most houses are priced right for their area but not priced right for the condition of the house. Don't let your house be the dented can!

Staging is a way to prepare a house for sale so it raises the condition of the property thereby raising the value of the house so it equals the asking price. Or basically so the house is worth the price. Cleaning, decluttering, neutralizing, minor repairs and simple renovations will make any house, regardless of price or location, in move in ready condition.

In today's soft market, buyers will chose staged homes (move in ready condition) over non staged homes (as is condition) because they can just move in and start living. If they chose a house which needs fixing up before they move in, they will deduct the costs from the asking price.

Don't lower your asking price; raise your home's value instead. Stage your house.

Call me for a Staging to Sell Consultation. It's a small investment which will put money in your pocket by helping get your house sold.

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