Tuesday, January 14, 2014 / by Dean Miller
Write a new piece about the following. "Why using "Comps" can cost you thousands when you sell your home".
Yes, It is true that appraisers and most realtors use what is commonly referred to as "comps" in order to price your home, BUT, if you are only focusing on said comps, you could be leaving thousands of dollars on the table.
So what is the alternative? I'm glad you asked. You see, some homeowners say, "well the house down the street is similar to mine, but they havent updated anything in years, and they are asking $XXX.XXX for their home, so mine must be worth at least $50-100K more than them. Yes, knowing your competition is a key piece of properly pricing and selling a home, but in reality, there is another missing piece that most agents fail to share, and in some cases, dont even know.
That "secret" and missing piece of the puzzle? Market data and seasonality trends in your specific neighborhood. And when we say neighborhood, we dont just mean in your zip code or school district. We mean that little section or part of your town that everyone who lives there knows it by its own name. Many towns have multiple elementary schools. A lot of times, one side of town tends to sell for more than the other. Comparing apples to oranges tends to create increased time on the market, and causes owners to have to go through several price reductions before finding an acceptable buyer who is willing to meet on price and terms.
Lets look at a few towns where this is common. New Hyde Park for example. Within the 11040 zip code, there are multiple school districts, multiple elementary schools within many of those school districts. Some homes are in an incorporated village, and others are not. It's not fair or reasonable to expect the exact same home on Sixth Steet in the Garden City Park section of NHP, in the NHP school district, to compare with the same model home on Lords Way, in the Manhassett Hills section of 11040, in the Herricks School disctict, just like its not fair to compare and home on N 10th street, in NHP, in the NHP SD, with a home on S 10th Street, in the incorporated village of NHP, and in the FP school district.
So while all of these big national websites tell you that they know what your home is worth, and their algorithms are supposedly the best thing since sliced bread (which was first sold in 1928 http://en.wikipedia.org/wiki/Sliced_bread), please take the time to get "Hyper Local" and avoid potentially wasting or losing thousands of dollars.
The best way to know what you home is truly worth in any real estate market or any time of year is to stay up to date on what is happening right in your own back yard. If you would like to be kept up to date on all the homes that are listed, sold, and put under contract, in a simple 1 page e-mail that can be provided monthly, quarterly, annually, or just one time, there is no cost or obligation. Click on the following link, enter your property information, address, some details about your home, and we will add you to this no cost/no obligation list. blah blah blah blah, summarize, re-confirm the offer,