San Antonio Sellers – Let’s Talk About Price

By rerockstar • September 27th, 2009

Check Out That Price

Price is king.

As a San Antonio seller, I’m sure I don’t have to tell you how important the pricing of your home is. Every agent will tell you this (even the ones who take an overpriced listing know that price is king). While working with some of my buyer-clients recently, I have noticed though that although everyone seems to know that price is one of the most important factors in selling your home, not everyone is sticking to that thought. Here are some of the difficulties I am seeing lately on the seller’s side of the transaction.

You want/need to walk away with a certain dollar amount. – Everyone likes to make a profit on the sale of their home. Have you ever heard a seller shout with joy when they walked away with nothing? Of course not. Although I understand the “want/need” scenario, sometimes those numbers are impossible. You must be ready to a) change or b) not sell your home. Buyers are a tough bunch right now and there are a lot of them willing to walk away if you’re not being flexible. That’s not to say you should take an offer that doesn’t account for your needs/wants, just that you need to be prepared. Think like a buyer when you get an offer – knowing how to negotiate is of huge importance.

The art of negotiation. – Many buyers are ready to negotiate these days. Most of them I come across have done their homework and then when we begin to work together, I give them even more info on current market conditions in the area they’re buying. Armed with this knowledge, my buyers are prepared to negotiate your price based on the reality of the market. As a seller, you should be too. Don’t just take an agent’s word on price – arm yourself with up to date market data and be prepared to justify your price. Sometimes, being able to justify it can make a world of difference.

Inspections are your worst enemy. – Be prepared for your home inspection. An inspector is looking at the details and will inevitably find something in your home that needs repair. Most buyers are looking to get these things fixed. Choose your battles carefully here. Scrapping the sale of your home because you don’t want to repair something the inspector found can be more costly (in time and money while waiting for another buyer to come along) than the repair itself. And, if you let the repair go untouched it could get worse by the time the next buyer makes an offer. Be flexible within your boundaries and once again, think like a buyer.

Comparables. Your San Antonio real estate agent should perform a comparative market analysis on your home before listing it. In it, we look for recent sales, trends, and market data in order to help find the best price for your home and give you a picture of how long it might take and what you should be able to expect. This is not an exact science. Two people can give you two completely different pictures with the same data. I recently had a home my buyers were looking at, but when we saw the comparables the seller’s agent was using to justify the price, we walked away from the offer. Why? The agent was using market data from a large area – including areas that were full of large, expensive homes. This allowed them to inflate the price. My buyers could see that it was overpriced and were not willing to pay that much for the home.

Appraised value needs to be considered. – Appraised value is often confused with tax valuation. These are not the same. The Bexar County Appraisal District determines the tax valuation (also called an “appraised value” which is where the confusion begins). This does not determine price. Because Texas is a non-disclosure state, these numbers can sometimes be way off from the true value of a home in current market conditions. That value that does need to be considered is the appraised value done by a licensed appraiser. This is done by the buyer’s lender and can make or break a transaction. If your home is outrageously overpriced, the appraiser is going to call you on it. Typically, if a home doesn’t appraise (meet or exceed the purchase price) the transaction will be scrapped. By having your home priced right, you can avoid much of this headache.

The takeaway?

If you’re selling your home in San Antonio, make sure it’s priced right. Be prepared and know what your net outcome will be when you sell your home. Hire a local San Antonio real estate agent you trust and are comfortable with. Clean your home and fix those little things you’ve been meaning to get around to. Think like a buyer in order to prepare for any issues that arise. Know your market statistics and the recent market activity in your neighborhood. Know your goals and make your agent aware of them as well. Together we can get your home sold and you into a new home.

photo courtesy of Michael_Lehet