Pricing your Novi home off similar Novi list prices
Here is what not to do:
I was at a Novi real estate appointment last week. The sellers needed to sell their home in 3 months in order to be able to buy a home in another state. They kept referring to what Novi homeswere listing for and not what homes had sold for in their Novi subdivision. I had to remind them they needed to focus on what homes had sold for in their Novi neighborhood. They needed to focus on what similar Novi homes had sold at ( what price) and what concessions were made. Not the listed price of some home that hadn’t sold in six months. Your first worry shouldn’t be what Novi Home list prices are.
You should take a look at the recent Novi real estate sold prices. Then take a look at how long they were on the market. If the Novi home was on the market for a long time, did they have to continually have to lower the price before it sold.
|Novi home example one There were three homes in the subdivisionthat were listed over $550,000 and a couple listed at low $500,000. But many similar homes in Novi were listed near $500,000Listed 11/15/07 $575,000Lowered price 1/20/08 $540,000Lowered price 3/30/08 $525,000 All the Novi homes in the sub that were listed in the low $500,000 range are sold and many of the other Novi homes that were near $500,000 are gone too. But there are many new ones that are now listed below $500,000.Lowered price 5/30/08 $505,00Lowered price 7/15/08 $495,000
Lowered price 8/15/08 $475,000
SOLD 11/02/08 $440,000
The moral of this story is that the Novi home seller listed their home too high based on other similar high list prices. Then they had to chase market price down. Novi Homes were selling in the low $500,000 range but their house was overpriced. But then when the seller dropped his price to get that market price, the home values had dropped again.
|Novi home example two There were three homes in the subdivisionthat were listed over $550,000 and a couple listed at low $500,000’s. But many similar homes in Novi were listed near $500,000Listed 11/10/07 $529,900Got an offer 12/27/07Sold $505,000The Novi homes were similar. They were in the same sub. But one homeowner went off list prices. He lost more money with the reasoning that his house was similar to the other homes. No matter that they were all over priced.The other homeowner that sold at $505,000 sold in 45 days. And sold for $65,000 more than the first home. And sold 11 months quicker because he looked at the recent sold prices. His agent helped him understand that is what is house was probably going to sell for!
Metro Detroit home values aren’t stable. They can drop at any time. So if you overprice your home you have the good chance of losing more money as the market falls than pricing it right the first time.
Once you know what Novi homes that are similar to yours are selling for, then you will know what yours most likely will sell for.
You determine the what you sold price and then work backwards. By looking at how long Novi homes were on the market on how fast they sold will help you determine where to list it at. Too high and your home will sit on the market.
In this Michigan buyers market you have to be “one of the best homes for the value” thee nicest home for the price to get it sold. If you price it too high people won’t even put a bid in. They have too far to bring you down. It doesn’t matter if you are the best house sometimes you won’t even get an offer if you are overpriced.
If you are thinking of selling your Novi or Oakland County home give me a call. We will go over the recent sold prices for your neighborhood and in Novi. Give me a call on my cell at (313) 310-9855 or email me at YesMyRealtor@gmail.com to set up a time to get your house listed and sold.
|My quote of the day is:Your true value depends entirely on what you are compared withBob Wells|