Put yourself in the shoes of a typical buyer by understanding their top concerns.
1. At the time of sale, a home becomes a “commodity”. “Market Value” is determined by the amount well informed buyers have agreed to pay today on comparable properties. The seller’s investment in and/or emotional attachment to the home is not a determining factor.
2. Terms affect price. The move liberal the terms, the higher the price the seller will obtain. The more restrictive the terms, the lower the price.
3. Location, Location, Location. Convenience to employment centers, schools, transportation, etc., as well as lifestyle opportunities drive buyer demand.
4. Buyers typically pay more for new construction. At the time of resale, newer occupied homes may have to compete directly with new construction by discounting the price.
5. The cost of capital improvements may not be fully recovered. Although future buyers may find improvements appealing, they seldom pay what they actually cost.
6. Deferred maintenance negatively impacts value. Buyers expect a property to be well maintained. The typical buyer will discount the value more than the actual cost of repairs.
7. Buyers seldom pay for seller’s decorating. The seller’s decorating choices should be viewed as a cost of personal enjoyment. Neutral decorating appeals to most buyers and will typically shorten market time for the seller.
8. Buyers expect specific features and amenities within each price range. Buyers quickly discount the price if room spaces, quality and features are lacking for the price range.
9. Incurable “defects” have a dramatic impact on value Buyers resist busy street, unpopular floor plans, and properties that are inconsistent with the character of the neighborhood. Sellers of these properties should allow for extensive market time or price below market to sell within an average market time.
10. Asking price drives value. Knowledgeable buyers respond quickly to inspect a new listing. An overpriced property suggests that the seller is unrealistic, which makes buyers reluctant to negotiate. Over time, when the price is reduced, buyers lose interest or are concerned that no one desires the property. This puts the seller at a disadvantage and can cause a below market sale price.