Home Values & Carrying Costs
Compliments of Plus Realty – South Florida Luxury Real Estate Brokerage
For every 30 days a home is on the market it costs the sellers at least 1.20%!
There are many different values pertaining to a home and there are as many different opinions of what the value is. This is such an important topic that a whole college degree could be written about it. This topic relates directly to the success or failure of selling a home. This sets all expectations and is driven by wants, needs, greed, humility and egos.
Here are some different values:
Owner’s Desired Value
Owner’s “Secret” Value
Real Estate Agent’s Value
Neighbor’s Value – “my house is worth more than theirs”
Fair Present Market Value
Future Market Value
Past Market Value
Lottery Winner Value
Emotional (Subjective) Value
Factual (Objective) Value
Distressed Auction Value
Luxury Non-Distressed Auction Value
Buyer’s Due Diligence Value
Buyer’s Emotional Value
TRUE MARKET VALUE
FACT: More often than not a home is overpriced when it comes to the market and the end Net/Net result is lower proceeds than pricing right with a proper marketing & sales strategy, and realistic expectations. This can be the difference between 2% and 30%!
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In order to understand this, let’s consider some facts:
Everyone believes they have a special home that is worth more than the next. Selling and buying are emotional – even for investors as they make or lose money. Realtors are sales-people, they want to get paid a commission and they want the listing – sometimes at all costs. Home owners rely heavily on the Realtors opinion. Determining a valuation requires great skill, knowledge, wisdom, and experience. Over priced homes get branded, have longer days-on-market, and costs over 1.2% PER MONTH as a result.
The most important of all value above is the True Market Value. That is what a well-qualified buyer – in a competitive and well market environment will pay for your home – TODAY! This number can be very disappointing to the seller if the expectations are too high or they have been misled.
Don’t worry, there is help. A great real estate agent will be able to explain all of these valuations and walk you through an objective model and help set goals, expectations, and get your home sold. One of the biggest challenges a great real estate agent has is explain to a seller how value, pricing, and marketing will result in a successful sale. These agents are honest, factual, and diligent. This the difference between an ordinary Realtor and a great Real Estate Agent. Think of a lawyer – if you were in legal trouble and needed representation – would you hire a “c” class lawyer or find the best “a” class lawyer? You may have a lower fee with the “c” but the “a” will protect you and deliver world-class results.
At Plus Realty we believe in providing tools and services that are factual, accurate, and we use the area’s best real estate professionals to assists in providing initial valuations for our users. We have proprietary TrueValue technology that accurately determines a home value and risks / rewards of higher or lowers listing prices as well as target acquisition values. We believe that too many buyers and sellers have lost $1000’ and $1,000,000’s as the result of poor representation. We aim to serve buyers and sellers in Cape Coral, Fort Myers, Captiva, Sanibel, Estero, Bonita, Naples, Marco and surrounding areas. Feel free to use our tools, request a valuation, and use our TrueValue service.
Thanks for reading, hopefully you enjoyed.
South Florida Luxury Realty Brokerage
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