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No, Don't Give Your House Away

Friday, September 23, 2011   /   by Ira Miskin

No, Don't Give Your House Away

The statement: I don't want to give my house away, if not clearly articulated by Sellers to their listing Realtor, is certainly on every seller's mind. It is the seller's mantra, spoken or unspoken whether the market is a strong seller's market or a troubled buyer's market. Why is this a concern for Sellers? Likely because they may not trust their Realtor because their Realtor has failed to give them a full, clear market analysis backed up by research data that helps the seller understand the markets values and how their home stacks up.

The Comparative Market Analysis - CMA, must be a well-researched and presented package of data that breaks down the market in a number of ways so when a home is valued, there is strong market analysis data to back up the price assumptions. Sellers need and deserve to have accurate data that is clearly presented in order to make confident decisions about the ultimate selling price of their valued property.

No two homes are truly alike. Location, condition of the home, neighborhood conditions, and a variety of other physical factors play a role in valuing a property. But values of other homes that have sold and closed on the seller's street, sub division, neighborhood school district, market area and even city all have impact on a home's individual value. A 2-story, 3-sided brick, 4 bedroom, 3 bath home on a basement with a side loading garage in North Fulton County Alpharetta will be valued and sold at a substantially different price than the exact same design in West Cobb County Powder Springs or East Cobb County Marietta or South Cherokee County Woodstock.

What did homes in the seller's community sell for prior to the economic downturn? What percentage of deflation can be ascribed to the market and what portion of that value decrease directly affects that individual home? What were the original list price (OLP) to list price (LP) to sale price (SP) ratios and percentages prior to the downturn? What are they today? How have they changed due to changing market conditions over the past five years since the Atlanta Metro markets sale price highs? What were the year to year changes in their Market Area and in their sub division? Were those changes less, more or the same as the Atlanta Metro market as a whole? Correlate these statistics plus a number of equally important, sometimes subtle market performance factors and you have strong, clear, supportable data from which a simple, easy to understand summary with references to the research can be provided to the seller.

Realtors and their researchers should always remember sellers are not real estate professionals. The seller is financially vulnerable and emotionally involved. Their home is usually a substantial portion of their net worth. The seller must have good information, clear marketing data and clear assumptions of what a range of values and timeline for a sale should be.

These are tough times for most sellers. They need and deserve the best research, clearest analysis of their homes value and the strongest marketing plan linked to a smart pricing strategy in order to garner offers and negotiate a sale price that is clearly supported by their homes value.

Because selling or buying a home is a process and a journey, not an event, you will want to subscribe to our free video e-mail series for home sellers and buyers. For access to the complete series of free video and informational emails that can provide you with many of the important strategies and information you will need to make the best home selling or buying decisions you can email info@tmtrealtygroup.net and ask for the free no obligation SPECIAL E-MAIL SERIES REPORTS to be sent to you regularly over the next few weeks. Just put FREE VIDEO EMAIL SERIES in the subject line and let us know if want the home seller or home buyer series.

Or contact us directly for free, no obligation information at info@TMTRealtyGroup.net