The Art & Science of Pricing A Home

Determining what the market will pay for your home

Coming up with the right price to list your home is daunting.

 

  • It’s not a fixed number, or what we might expect to get for it – it’s not the number we need to make to break even on renovations or to what you need to buy our next home.
  • It’s not what a neighbor got for hers last week or last year, it’s not what one of the property listing sites estimates you could fetch.
  • It’s not the appraisal value of your home, either, which is a doozy to digest – and why wouldn’t it be?

 

If our homes are so unique — and we’ve put so much great care, time and investment into improvements, etc. why can’t we ask for the number that represents that?

I mean, you CAN — you can end up pricing your home however you like, at the end of the day. It is the homeowner’s choice —  but, if the end goal is to sell your home, with the expectation that someone will pay X amount for it, and in a reasonable amount of time — this often falls into the strategy philosophy camp I like to refer to art and science.

The science is data – what’s for sale right now that compares to your property? What similar homes have sold in the last 3, 6, 12 months in your area? What is that average price per square foot? And then comes the delicate science — and math of finessing the numbers to reflect the more unique or bespoke characteristics of the home. Sauna? Tennis court? Flag lot? Oh, the considerations and calculations!

The art bit is understanding people – the buyer — where the market is at, and what is the tolerance for price range where you are, at this exact moment? Where are the interest rates? What are people buying? Is it a condo? How many days on the market in that zip code have similar properties taken to sell? Is your style of home super popular right now? That neighborhood is so hot homes sell in less than a week? That’s data, too, of course, but it’s truly understanding that mindset, that appetite that is the real finish work when it comes to determining the price at which to sell your home. The additional artistry is understanding your priorities when selling? Have to have it sold quickly? Don’t care how long it takes you want the right buyer who’s willing to pay your price?

Of course all of these things factor in. It’s touches on the emotional, the financial, the very core of our fears and that which is most important to us. That’s why it’s so incredibly nerve-racking thinking you’ve either left money on the table or you’ve aimed too high and over-reached, possibly having to consider a price adjustment or pulling it from the market until a different time or after having done some value-add improvements.

 

It’s a tough conversation at times. Often, I’ve found, through the art & science method, you can determine a range: factoring all of these elements in, that provides something that everyone can tolerate — and possibly, very possibly, find very satisfying on closing day.

 

Stuff Management: Moving, Estate Sales, Yard Sales, Downsizing & Organizing

Moving? Preparing to list your home? Making your space more livable? Just making space?

Whatever it is, it requires a handful of different tasks carried out — or services rendered —  and making sense of it all can be challenging, especially if you’re under the wire to get a job done; if it’s a difficult moment in time or if there are many decision makers involved, etc.

I’ve put together a handy guide for how to manage these projects, who can help, and how to get there.

Why would I be an expert on this? Because, as a Real Estate Agent I help all kinds of people prepare to move, to de-clutter or downsize; to organize for a more streamlined living space or to prepare to put their homes on the market.

I help with move management, coordinating customized services like estate sales, auctions, clear-outs, and of course the moves themselves. In situations where an estate requires a combination of jobs done, (off-site online estate sale item distribution, inventory and donation coordination, movers and clear-out, deep cleaning and storage space decisions) And of course personally, as a consumer of these services and someone who’s been knee-deep in the work myself, I have partnered with some of the best resources in the country to achieve custom outcomes.

When there’s individual or bulk item selling, you’ve got the classic tried and true yard/garage sales; Craigslist listings and Facebook Marketplace to name a few, as well as antique and resale selling for furniture, appliances, home decor, etc.

In any part of the country, there are options and preferred vendors, and it can be dizzying who to choose, how to get started: scoping the size of your jobs and specific needs, etc. One thing remains the same however, one common cry of those in this stage of the game: “I have too much stuff!”

 

What Services Do You Need?

Here are some of the folks who can make your life much easier, and what you need, of course depends entirely on you.

  • Organizing and Decluttering Professionals – There are all shapes and sizes for these kinds of services. One of my favorites in the Bay Area is Rita Rey. Read on for a bit more about what Rita offers below.
  • Preparing for Marketing Your Home Professionals:
    • Declutter and streamline your home
    • Assist with decision-making about what items to keep
    • Arrange for a donation, sale, or disposal of unwanted items and supervise removal
    • Stage home with existing furnishings
    • Arrange for furniture and heavy items to be moved within your home (if needed)
    • Pack and arrange for the removal of items not needed for staging
  • Downsizing – much of the above tasks apply, with an emphasis on removal or rehoming of items rather than staging and listing preparation. This can be DIY of course, or you can enlist some support!
  • Storage Rental or Pods – Knowing what you need and what serves your specific purpose and then aligning with the right contract and combination.
  • Estate Sale or Auction and full service coordination for larger jobs and important transitions – These are incredibly valuable services for those assisting after a loved one’s passing, or extreme downsizing, estate sales being especially useful if you’re able to conduct onsite. If unable to do this, an auction may be the way to go. Folks like Caring Transitions’ Jessi and Ryan, in Phoenix AZ are the gold standard, and the bar by which I measure all the rest. Check out what their services include here, and check out below the reasons why they love what they do, and people love them so much.

  • Yard Sale or Online Selling – Doesn’t need much explanation – but there are certainly pro tips and best times of year depending on your location.
  • Move Management or Movers – I am often surprised that people are unaware that these fully managed suites of services are available, and increasingly popular as a large part of our population is aging into a category who’s best served by folks like The Move Makers, here in the Portland Area.
  • Cleaners – There are regular house cleaners, and there are move-out specialists, and of course other specific services like carpet cleaning, window and gutters, etc. Some companies specialize in whole-house readiness, and this is a phenomenal choice for a one-and-done kind of approach, or for those heftier scenarios. I’ve recently had the good fortune to work with Shawna at Maid to Organize and am loving their work ethic and availability. These fine Portland area folks specialize in Estates, Hoarding, & Generally overwhelming spaces & situations, or as they put it: Professional Organizing, Cleaning & Estate Clearing as a wholistic package offering.

 

When I asked Rita, of Rita Rey organizing in the SF Bay Area, to tell me a bit about what makes her services so special, it really resonated with her passion, and spoke to her compassion:

“I just love to be part of the process of helping my clients achieve a sense of peace and surround themselves with things that make them happy. Letting go can be scary, but less scary than facing the chaos daily. I have not heard one client say that it was not worth it despite being scared to start the letting-go process.”
When I asked Jessi of Caring Transitions, in AZ, to talk about what was meaningful to them in terms of serving their transitioning clientele, she told me:
“Our job is simple: to make sure your lifelong treasures and family heirlooms are cared for in their new home.”
And they do this by featuring a really seamless online auction service, which sets them apart from other packing/moving/estate sale services.
No matter what your project is, it’s yours, and it’s important, and having someone by your side to help or advise you is worth it’s weight in gold. I hope this has been a little assistance!

How to Sell Your Home for More Money in Less Time

Your home is an investment – so why not profit from it when it’s time to sell? There are a few key ways to stack the odds in your favor so you can cash in and move out quickly. I’m going to give you the 3Ps to sell your home faster and for more money!

1. Prepare Your Home to Sell

Home staging is key to selling your home for more money and in less time. I can’t stress this enough. We live in a time where people will sift through 40 photos of your house before they ever decide to walk through its doors. If professional staging isn’t an option, it’s easy to do it yourself! There are so many simple updates that you can do to prepare your home for sale. In addition to making sure that the home is neat and clean, you can swap out hardware, paint the front door, and throw pillows on the couches. Even updating your landscaping by adding flowers can increase your home’s market value up to 15%! A great real estate agent will be able to help guide you through this process and offer suggestions and examples of what works well.

2. Price Your Home to Sell

A home is only worth what the market is willing to bear. So pricing your home correctly is crucial.. A great real estate agent will look at comparable homes sold in your neighborhood and then analyze where the market is heading in the coming weeks to keep you competitive. Then, they will come up with a number for your house that’s priced to sell.

3. Promote Your Home

Quickly selling a home is more than putting a sign in the yard. An excellent real estate agent doesn’t just post and pray – they have a rock-solid marketing plan. Part of that plan is adding your home to the MLS and making sure it syndicates to all home search sites so interested buyers can easily find it online. Their marketing plan should ensure that your home gets as much traffic as possible in the shortest amount of time possible, so don’t hesitate to ask your agent, “What’s the plan?” Because they should aim to get you multiple offers and the best price!

If you’re thinking about making a move (or know someone who is), I can help! Just reach out via email or phone, or schedule an Inspired Housing Conversation. I’d love to help you explore your options and give you the info you need to confidently move forward into whatever you’re dreaming up!

Make Your Real Estate Plans for 2022 Early!

Contact Us Today

Happy Holidays everyone! If 2022 is the year you make your next real estate move, contact us early. Even if your plans are months away, it is best to talk to us as early as possible to get you the information you need to best prepare.

About Us: Over the course of their professional partnership, Aryne + Dulcinea have helped hundreds of clients prosper in their new lives. During this time, they have prided themselves in their top-notch selling abilities, with homes outperforming market standards, consistently exceeding list price while most of their listings sell in under 7 days. Whether you’re looking to buy or sell, Aryne & Dulcinea will work in collaboration to guide you in investing in your future and reaching your real estate goals.

Why Pricing Your Home Correctly is Critical In Our Market

When we work with our selling clients, we emphasize the power of presentation and pricing as a marketing tool for their listings. And when both are aligned, we achieve great success. Understanding that your property is unique, our pricing strategy coupled with our prepping support will get you top dollar for your sale. Watch Jenelle Issacson, owner of Living Room Realty, explain more.

About Us: Over the course of their professional partnership, Aryne + Dulcinea have helped hundreds of clients prosper in their new lives. During this time, they have prided themselves in their top-notch selling abilities, with homes outperforming market standards, consistently exceeding list price while most of their listings sell in under 7 days. Whether you’re looking to buy or sell, Aryne & Dulcinea will work in collaboration to guide you in investing in your future and reaching your real estate goals.

Feature Photo by Tierra Mallorca on Unsplash

Want to get pre-qualified during the times of Covid-19..?

There are a few tips  I would like to leave current Portland, Oregon residents  who are ready to buy or sell their homes, during the times of Covid-19.

 

Best 7 Questions to ask your Lender :

  1. Are you a direct lender ?

      2. Are you a correspondent lender or broker?

     *Please note, in my opinion, direct lender is usually best.

      3. Are you a local lender?

      4. Is the loan going to be fully underwritten?

      5. What are the current interest rates and can I lock in my rate?

     6. If my parter is affected by COVID-19, could I still qualify?

     7. Be honest, disclose your current working / employment situation with lender. Ask if it is better for you to pre-qualify for the loan individually?

     **The lenders are the experts who will give you the most realistic feedback regarding your ability to pre-qualify.

This video is created by Steph Noble, an amazing local lender here in Portland.

There are some mind- shift changes occurring within the current Real Estate Market during the time of Covid-19.

See link below for the full Video from Steph Noble, Local Portland Lender, Guild Mortgage.

 

 

Stability of interest rates, April 2020

The Feds interest right now is to solely  stabilize the mortgage baked securities for interest rates.

The Feds will increase and decrease their buying based off what is needed to keep the interest rates stable.

Their commitment is to keep rates stable.

The buying of mortgage backed securities is so powerful right now , it is out impacting any other economic factors.

Typically, when we have good or bad economic news, there is an impact to interest rates, the Feds buying mortgage backed securities is out-weighting any of those other economic factories regarding interest rates.

–You may have heard that the Feds are pulling back on what they are buying ?

Even with them pulling back as needed, to keep rates stable,  currently, the feds are buying back double what is being produced.

 

If you have any more questions or comments please reach out to me or Steph Noble directly!

https://www.livingroomre.com/agents/meline-khachatourian/

 

 

Stage Your Home: Essential Tips to Prepare Your Home to Sell

Getting ready to sell your home is a daunting task. If you’ve lived in your home a long time, listing and preparing to sell may be a very emotional process. Even if it’s not—even if you can’t wait to move! —there is still a long list of things to do when you’re moving. If you’re planning to sell, try to give yourself plenty of lead time to prepare your house to list. Careful attention to the following items can make thousands of dollars of difference! 

What to do before listing your house for sale:

  • Pay attention to curb appeal. It’s likely that prospective buyers first see your home in an online listing. This is the first impression—and a whole post can (and should!) be dedicated to creating an online listing to attract buyers. However, curb appeal is the very next impression, and it is crucially important. The moment prospective buyers park in front of your house or pull into the driveway, they begin to form an impression—before they ever step inside the house (or even get out of the car). Touch up paint, clean the gutters, trim the trees, shrubs, and grass, and plant colorful flowers or hang a flower basket. A tidy front porch and a new doormat make your home feel cheerful and inviting. And don’t forget to give attention to the backyard, too. It might not be street-facing, but you can be sure that prospective buyers will essentially look there.
  • Clean, clean, clean. And then clean some more. Knock down cobwebs, dust windowsills, baseboards, ceiling fans, and furniture. Scrub the grout. Shampoo the carpets and clean hardwood floors. Take a pumice stone to stains sinks, tubs, and toilet. Clean glass, including windows, mirrors, and any glass-front cabinets. When you think you can’t possibly clean anything else—clean some more. And then get ready to clean every time you having a showing.
  • Declutter. People collect a lot of stuff. The longer you’ve lived in a house, the more you tend to accumulate. Now—before you list your house—is the time to go through everything. Get two big bins: one bin for donations and one bin for garbage. Begin to fill them as you go through every cupboard, every closet, every nook and cranny in your home. Once you’ve done this, go back through each room and begin to box up personal items (framed photos, photo albums, toys, books, knickknacks, etc.) and things that you don’t have an immediate use for (extra dishes, extra towels, bedding, out-of-season clothes, etc.). Your goal is to give prospective buyers a sense of spaciousness in your home. Don’t think that buyers won’t look inside cabinets and closets. They absolutely will. There’s no place in your home that you can hide things, so now is the time to begin to pack things that you intend to move to your new home.
  • Paint the walls. Maybe you love bright, bold colors. So do I! But home buyers want to envision themselves in your home. Help them out by giving your home—either the entire interior, or a room here and there as needed—a fresh coat of paint in a neutral color: think soft white, gray, or beige. Not only does this help buyers as they mentally “try on” your house, but fresh paint also gives prospective buyers the sense that you have maintained and cared for your home.
  • Rearrange furniture. Decluttering isn’t just for small, personal items. Think about what furniture you might be able to remove from your home to make it feel more spacious. Do you have an old, comfortable, but unsightly armchair? Move. It. Out. Do you have eight chairs crowded around your dining room table when four would do? Move the extra chairs out. While you’re at it, remove bean bag chairs, extra bookcases, or any other awkwardly placed piece of furniture. Once you’ve done this, look at the remaining pieces with a critical eye. Arrange sofas and tables in a way that appears to invite conversation. Arrange bedrooms so that the bed is the focal point of the room. Strive to make each room or space in your home as inviting as possible.
  • Remove all signs of pets. This one is hard. I know. Pets are part of our families. But that’s just it: a pet is part of your family. But to a prospective buyer, pets might be a major turnoff. Now is the time to remove pet toys, crates, beds, and dishes from your home. If you will be living in your home while it’s on the market, it’s important to pare back pet items as much as you can. Leave food dishes and a single bed, and be prepared to pack these items into the back of your car while a buyer tours the house. Further, make sure that pet odors are eliminated from your house. Again, shampooing carpets can go a long way in helping with pet odors. However, ask a friend—or anyone who doesn’t live with you—to come over and tell you if your house smells like Fluffy. If the answer is “yes,” research ways to sanitize and deodorize your space.
  • Freshen things up. Small touches make for a big impact when it comes to staging your home. It goes without saying (I hope!) that every garbage should be emptied prior to a showing. But you can do more! Here’s a trick: think envision your house as a beautiful bed-and-breakfast. Place a vase of lovely flowers on the table, and a bowl of fresh fruit on the countertop. Make the beds with new, crisp linens, and place fluffy white towels in the bathrooms. A soft throw blanket draped over the arm of the sofa or an attractive art book on the coffee table lend feelings of coziness and sophistication.

What’s the point of all of this? Think of it this way: your job is to give buyers a vision. These touches take buyers from “I could live here,” to “I want to live here!” And after all, that’s the goal! It’s a lot of work, and it can seem daunting. But the payoff can be immense. While you can tackle all of these items on your own, you certainly don’t have to. I can recommend house cleaners, painters, and professional home stagers who can help you to declutter and prepare your home for listing. Whether you want to list next week or in six months, use this list or call me and we can begin the process—together!

 

Will my house sell for more money when I stage it?

Perceived Value.

A homebuyer determines the value of a home before they even enter your home. The NAR reported 55% of buyers find their home on the internet. First impression is everything. A photo can speak a thousand words… but don’t take my word for it, see for yourself and review the research below. Forbes, the National Association of REALTORS®,  and HGTV agree that staging your home will earn you a positive return.

 

The photos shown here are from actual listings in Oregon & Washington, that I sold, and either personally staged or hired a professional stager. Some of these listings were full of clutter or located in a logistically difficult location.  One listing was on a very busy road with almost no driveway or garage and several unfinished construction projects. Another had little natural light and a slight pet odor. The last home was the most expensive house in the neighborhood, surrounded by homes that did not maintain their yard(or not attractive from the exterior), and did not have a garage. The point is- there may be other factors that make a home more difficult to sell. First impression is everything. If you can WOW potential buyers regarding the interior and exterior, the other factors are minimal in the end. A common rule of thumb for a home on a busy road, is to reduce the price 10%. If there are factors that already reduce the value of your home, wouldn’t you want to make up for it in some way? And if you could add 10%+ value to the true value of your home by re-arranging furniture or staging it- why wouldn’t you?

Forbes reported, “According to the National Association of REALTORS®, for every $100 invested in staging, the potential return is $400 . Compare that to the average sale price, which is a reduction of 10-20% from asking. So an average home with a $400,000 asking price will be reduced by $40,000 to $80,000.”

A great quote right out of an HGTV article, “I see many home sellers confuse staging with decorating and consequently resisting the process and the recommendations of the staging professional. But the reality is that the moment you commit to marketing your home for sale, you need to commit to transforming your home into a place that potential buyers can easily picture as their home.”

Staging is not only about furniture or de-cluttering. Staging a home for sale is a process that starts by preparing a “listing-prep” plan. After I meet with a client and sign a listing contract, we do a walk through together and make this plan. It can include a calendar of timelines to get household projects completed, packing, storing furniture, and touching up paint. As you can see from all of the above “before” photos, lighting makes a HUGE difference. Lighting, furniture placement, and professional photography create the WOW. Once we have all those elements, the perceived value of your home is at its highest and best. When your home is presented at its highest and best value- you sell for the highest price! Actual value depends on your location and condition of home. To find out what your home value is and what staging can do to improve the value of your home- contact me.

If you’re curious what it’ll take to sell your home, call me! I’d love to discuss future real estate opportunities with you. Call, email or text anytime.

Julia Robertson | Broker Licensed in Oregon & Washington

Insta @realestatebyjulia

541-505-1111 | julia@rebyjulia.com

Living Room Realty

Never Have I Ever…

Mary Ann came to me as a referral from one of my favorite clients to date, I already knew I would love her based on that. As we toured her home for the pre-listing walk through, I began to jot down my regular notes: take down posters, narrow down decorations, put away unnecessary kitchen counter top appliances, yadda yadda. She was clearly making mental notes as well, and I could see she was up for the challenge. We cruised through her (incredible!) theatre toward her master bedroom, her sweet pup- Phinn, trailing close behind. Mary Ann watched me closely as I peeked into each closet accessing its future. As I reached the master bedroom I saw her grin and mumble “uhhh open that one slowly… I have kind of a shoe thing…”. You guys. I’ve never seen so many shoes in all of my life! Nordstrom has nothing on Mary Ann! She had neatly lined each pair up row after row after row, after row… after row. I closed my gaping mouth, gave her my punch list and prayed to all of the listening shoe Gods. I returned a week later to finalize the listing and almost fell over dead, SHE DID IT! Mary Ann did every single thing I asked! Talk about dream client!! All of the hard work paid off 7 days later when she got her offer and we sailed into a smooth closing. Congratulations Mary Ann! Thank you for trusting me and letting me participate in your move to the next chapter!

Importance of not over pricing your home

I’ve shared with my clients over the years that there are three ways to price a home. One, the highest price possible. Two, at market value. Three, just below market value. Every agent has their own pricing strategies. These have worked for me, and I’ve found pricing at a sweet spot below market value can bear a final price higher than both market value or the highest price possible. Once we’ve reviewed the recent sales of the neighborhood, we decide which strategy to use based on the home specifics, most importantly the condition and location. Its important to understand the state of the market and know pricing your home in the “old” real estate market is not the same now in the “new” real estate market. It’s also important to understand how buyers shop in the “new” market. Buyers are smart! Buyers have been researching homes, neighborhoods, and determining the value of your home before they’ve hired an agent to represent them.

I’ve found that many homeowners cannot grasp the idea that pricing their home competitively(slightly below market value) will create more interest and yield a higher sold price. If a homeowner has not sold/purchased a home in many years, their expectation is to receive an offer under their listed price, then to further negotiate. Their idea is that they’ll have to negotiate lower than their listed price to begin with, finally settling on a price below the “highest price possible”.  With the examples I’ve copied below, you’ll see that the majority of homes that sold below the listed price, were also on the market for a longer period of time. Time is money. Time is an extra mortgage payment, utility costs, and may also deter a buyer from choosing your home over a hot new listing priced competitvely. Your real estate broker will know when the home is an exception to this situation. When a listing enters the market at a competitive price(with all things considered-price, location, and condition), you open the door for multiple offers, escalating price, and attractive terms for the seller.

If you’re thinking about selling and need some guidance, contact your broker or give me a call. I’d love to review the selling process with you and help you determine what you can list and sell your home for in today’s real estate market. -Julia

Julia Robertson | Broker licensed in Oregon & Washington

Living Room Realty

541-505-1111 | julia@rebyjulia.com