Open Letter To A Home Seller

When I get a call from a client to sell their home, I will spend 2-4 hours (depending on the situation) collecting market information and preparing a market analysis.  Then an additional hour or more previewing the home to assess the condition and quality and to be sure that I am comparing "apples to apples" in my evaluation.  Following is the type of information that I provided to a recent seller.

Dear Seller,

Thank you for meeting with me at your home yesterday morning. You have done a great job preparing your home to sell. The painting and overall preparation will go a long way. A few of the things that buyers will love. . . . The overall size, home style, deck/screen porch (and privacy), hardwood floors, huge master, partially finished basement, and neighborhood. The obstacles are the stained carpet, wallpaper, sloped lot, the lack of kitchen upgrades such as no granite etc. Your home is fantastic but we have to be realistic with the positives and negatives that buyers will consider.

In preparing a market analysis for pricing, I go through a similar process as an appraiser when they complete a report. (Although it is not an appraisal) I find "comparable" sales in the area and then make adjustments for the differences in those properties and your home. Differences can include size, condition, lot, amount of finished basement, number of bedrooms/baths etc.

The search criteria that I used to find the comparable sales was as follows:

Kell High School, minimum 4 bedroom 2 bath, 2 story brick traditional, basement, priced between $200k-$300k, built from 1980-1992, and sold within the past 12 months. I don't usually go out of the school district because that is the primary "neighborhood" that drives prices, but I also looked at Lassiter High School to see if the supporting information was consistent.

Within Kell High School area there were 10 closed sales that ranged from $208,000 to $249,900. In Lassiter, 19 closed sales $223,000 - $299,000. All with the other criteria listed above.

After making the adjustments for the differences, the market information indicates a proper list price for your home falls within the $260's with a likely sale price near $250k. That may be lower than you expected but that is what the recent market has shown. I don't set or make prices I interpret "market value" and this is what is being supported in today's market. If you are convinced/set on a higher price, I would recommend getting an appraisal for a 3rd opinion. (which is what market analysis and appraisals are. . .opinions) You can use any appraiser that you want or I have a couple of names I would be happy to give to you if you want to pursue that option.

Back in the "good old days" of selling homes, it was OK to simply have a "competitive" price in order to sell a home. In this market the price must be "compelling" to have any chance at selling, because there are fewer home sales and tougher competition.

I have a lot of information that I have collected for this analysis and would gladly share it all with you. Please call to discuss further or if you have any other questions.

Look forward to hearing from you.

Regards,
David

David Arnold
RE/MAX Greater Atlanta
678.784.4354 Direct
678.301.3620 eFAX