Helpful Seller Info

My advice? Don’t choose your own price.

My advice? Don’t choose your own price.

It’s very tempting to want to choose your own price. There’s all that information out there on the web, real estate portals, town market updates, newspaper articles and much more. There’s also your friends and the neighbor who sold their house five years ago in a different market. Usually when people call me in to list their home they have already scoured all the information available and come up with their own idea of what the price should be. It’s been my experience that sometimes they can be right, but most times their price is not right for current market conditions.

Your friends and neighbors, when they find out you are selling your house, will all have an opinion … which is usually based on some anecdotal data they heard from a third party or based on their experiences. They often are much higher than your house is really worth, but it makes you feel good to hear it and you soon start believing it yourself.

Next is the elephant in the room, the zillow “zestimate”. According to a recent article in the Boston Globe, a zestimate is not the price that your home is really worth. They quoted Cory Hopkins, Zillow’s public relations manager for data, who said” a zestimate is a starting point and should be used in conjunction with guidance from local real estate professionals who understand the market and know your property.” Bottom line, until a computer algorythm like this can go inside your home and compare it with similar homes it has also been inside, the results it predicts are suspect.

As I like to say, pricing is 50% science and 50% experience. The data available to the public is usually about a month behind the market, because “sales” don’t get recorded until the money and deeds actually change hands. This can often be 45-60 days after a property has accepted an offer so while in slow markets this is fine in hot markets you might be leaving money on the table if you’re using stale data. Local professionals are right on top of the market to today, so they know what has sold and approximately for how much well before the data becomes public. This is power to be used for your advantage.

To set your price I use a clearly defined process that is repeatable and yields consistent, accurate results, (my list-to-sale ratio is 96%, industry average is 92%) here’s how it works:

First, I have to walk through your home in order to put a price on it. This is usually a half-hour exercise, but is very important to the process.

I then use the information I collect, such as updates, additions and improvements and compare your home with other houses that I have been inside with similar fits and finishes. If I can’t find ones I have been inside I often make arrangements with the realtors or homeowners to do a quick tour to be sure that I’m really comparing your house to comparable properties. No amount of clicking on internet sites can replace this experience.

Once I have evaluated your house versus the comps I will make adjustments for many variables (that matter to buyers looking for a house like yours), such as: living area square footage; lot size; number of bedrooms and baths; garage spaces; and location. After the adjustments are made most people stop and decide that this is what the price should be.

The last step is to position your house within the market. A house is worth what somebody will pay for it and what somebody will sell it for, we call that a “meeting of the minds”. So, it is important to know who is out there looking for a home like yours and who your competition will be. One useful market statistic is called the Absorption Rate. This compares the number of properties currently on the market with the number of properties sold within the last year in a given price point. If there are more properties than buyers it’s a buyer’s market and if there are more buyers than properties it’s a seller’s market (we like those).

Once this analysis is complete I will give you a price that I think a buyer will probably pay for your home in today’s market.

In summary, don’t chose your own price, leave that to a professional … Mike Hunter.

Most Popular House Colors in Sudbury, MA in 2013

Most Popular House Colors in Sudbury, MA in 2013

For years I’ve been keeping track of the popularity of house colors and their changes from year to year. Here are the results for 2013 and below that is the chart for the previous year so you can see the changes. Keep in mind that Sudbury is a leafy, colonial New England town with a total of 242 homes sold in 2o13 and that the residents generally tend toward colonial colors and furnishings.

You will see that compared to 2012, for the major colors: white has dropped slightly; tan is the same; and gray is up. For the minor colors: yellow and blue are down;  green and brown are up; and red is the same.

In a follow-up blog I will be answering the question – “What color houses sell the quickest and is it worth it to repaint my house before I put it on the market?”

2013-sudbury solds by color
2012-sudbury solds by color

Closing Checklist … Items You’ll Need at Your Closing

Closing Checklist … Items You’ll Need at Your Closing

Okay, so now you’ve bought/sold a house and the closing is happening soon.

If it’s your first time or your first time in a long while here’s a quick primer.

If you bring the following, you should have everything you need.

  • New Deed drawn up by your attorney. (sellers)
  • Smoke Detector & Carbon Monoxide certificate of compliance (sellers)
  • Title V certificate of compliance (if serviced by private sewer) (sellers)
  • Final water/sewer bill, stamped paid in full (if municipal service not serviced by well) (sellers)
  • Keys and garage door openers ( leave duplicates in a drawer in the house) (sellers)
  • Copies of any paid bills or affidavits required for work done after home inspection issues were negotiated. (sellers)
  • Instruction booklets, receipts, builder drawings and anything else you have that the buyer could find very useful after moving in to your home (leave them in a drawer in the house). (sellers)
  • Copy of receipt or statement for fuel oil in the oil tank and/or propane in the propane tank (if applicable) (sellers)
  • Driver’s license or another form of personal identification. (sellers & buyers)
  • Your personal checkbook for miscellaneous items and/or adjustments. (sellers & buyers)
  • Certified check or cashier’s check drawn in Buyer’s name or whatever the conveying attorney specifies for the difference between the sale price of the property and the amount of the mortgage less any deposit already made. The final amount will be spelled-out in detail on the form known as the HUD1. (buyers)
  • At the closing, the bank may require 2-3 months tax payment (to be held in Escrow by the Bank); PMI when applicable will be collected for the first year. The exact amount can be obtained from the mortgaging bank prior to the closing; it will be spelled-out in detail on the  HUD1. (buyers)
  • Additional fees can be paid with cash or personal checks. The exact amount can be obtained from the bank’s attorney prior to or at the closing. (buyers)
  • Personal property of the sellers can be paid with cash or personal checks. (buyers)
  • Remaining fuel oil in the oil tank (if applicable) can be paid with cash or personal checks. (buyers)
  • Paid insurance policy or binder for the new property (whichever the conveying attorney specifies) in an amount equal to the amount of the mortgage. Ask your insurance agent for advice on this matter. (buyers)
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