How much is your White Lake home really worth?
How do you come up with a price for your White Lake home? What do you think your home is worth? Did you hear from a neighbor what a house sold for down the street? How do you know what the house was like inside? Just from hearsay, you heard yours was much nicer. Or do you set your price of your White Lake real estate from what you paid for it and then adding in what improvements you did? Just because you put a lot of money in your White Lake home does not mean you will get all that money out. Your home is only worth what a buyer will pay for it. That is what we call market price.
Sure you as the seller makes the final decision on what to sell your White Lake home for, but if we cannot find a buyer to pay that price we have three choices.
- Either you pull it off the market and not sell your home
- Improve the condition of the home
- Or lower the price of the home
All homes sell. Even the worst homes sell. At what price will it seem to be a good buy to a Metro Detroit home buyer?
Let's think of it a different way. Think of it as a buyer...If your home was Bob Jones' house and you were a buyer. You have been out looking for weeks at White Lake real estate. Bob is asking $350,000 for his lake house. Bob paid $250,000 and put in a $90,000 pool and $40,000 in landscaping. Bob's back yard is nice but the bathrooms need updating, and the basement is not finished. Bob figures he can get $350,000 because the neighbor down the street sold his lake house a year ago for $350,000. The neighbors house he did not have a nice of back yard. By the way the neighbor's house had a new kitchen and new bathrooms, and a finished basement when he sold it. Well you were out looking and you have seen 2 houses similar to Bob's house, but they were listed for $300,000 and $310,000. One had a beautiful finished basement and 400 square ft more, and a nice built in pool. The other one had just redone the kitchen in beautiful cherry cabinets, a neutral floor, stainless steel appliances that come with the home, a beautiful bathroom with a spa tub, and a separate glass shower, and a finished basement and nice landscaping. Which of those three White Lake front homes would you chose? Not Bob's because his is overpriced!
CMA - Comparative Market Analysis
Well the White Lake real estate market may have come down or gone up in price since your neighbor sold a year ago. But you did not realize that. I'm in the real estate trenches day in and day out. So I can tell you what the market is doing in your city. A comparative market analysis will help you determine what your White Lake home should be priced at. A comparative market analysis is a report that real estate agents search out homes that have sold in the last six months, similar to yours in size, style, and amenities, and within a mile of your home.. A CMA usually uses 3-6 comparable homes to determine your value. Some homes are harder to compare because they may be unique in location, size, or amenities. But you have to determine "what will a buyer pay for the new kitchen, or a pool" If the buyer can by a similar house for $20,000 less than yours, would they? Many would. You would have to get somebody that absolutely loves that landscaping and the pool. Not to say it won't happen, put you have to price your piece of White Lake real estate right. That is where a CMA comes in.
Yes, your home is great in your eyes. But you have to take off the rose colored glasses and look at your home as a buyer would. Yes, you can set your White Lake home price at any price you want, whether it will sell is another story. Can you wait six months or a year until the prices rise to that high point? Do you have to sell by a certain time? When a house sits on the market for a long period of time, buyers realize something is wrong with the house (whether there is or not) You are more prone to get low ball offers.
When your White Lake waterfront home first comes on the market is when there is more market activity, more interest. The longer it sits, the less interest, and the lower the final sales price. (Sometimes sellers even reject an offer, then have to accept less later on) Just because they thought their home was worth more. Even when you lower the price it will not be the same as when it first came on the market because there are less buyers looking at it. People who have seen it a month or two ago may have bought another house. Or reject seeing it again because they didn't like one little item about your house. They may never come back even though the house is now priced right. Price it right in the beginning.
Bottom line is ask for a comparative market analysis (CMA) and look at it carefully. If the White homes are like yours, have the similar square footage, bedrooms, amenities then you should look hard at the prices they sold for. Read the description, how do your updates compare to theirs. Your home most likely will sell in the same price range if everything is comparable. You won't be rejecting offers if you know what the correct sales price should be.
If you are thinking of selling your Michigan home, whatever Metro Detroit County you are in we have the knowledge to price your home right. We have an excellent marketing plan to get your home sold. Call me on my cell at 248-310-6239. Or email me at yesmyrealtor@gmail.com
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