Pricing Information for Home Sellers and Investors in

Sonoma County

How to price a home

Whether you are a home owner or Real Estate investor in Sonoma County, when it comes time to sell you are faced with the age old question, “How much is my property worth?”Here are some simple guidelines to follow to help you answer that question.  For the real estate investor we offer additional information at out “Big 4 of Real Estate Investing.” For both the homeowner and investor devising an accurate listing price for your real estate property is the key to getting it sold.  Here are some ways:

County Tax Appraisal

The first thing that comes to many minds is the county tax appraisal. While this appraisal may seem as good a place as any to discover the cash value of a real estate investment, it will not always give an accurate picture of current trends in the local real estate market. The property taxes often reflect only general amounts and will not give a clear view of what type of real estate pricing the local market will withstand.

Have the Property Appraised

Another popular option is the property appraisal. While most lending institutions require the homebuyer to get a property appraisal, it is rarely necessary for the current homeowner to spend the money in order to get this appraisal done. While this is a viable option, it is an added expense in the already costly field of real estate investments.  Figure paying around $300 for the appraisal.

Comparative Market Analysis from a Qualified Realtor

Allowing a qualified realtor to make set the listing price may or may not be a good idea when selling a home. If the realtor is intelligent, has great information and is highly qualified and honest, then they may indeed be able to offer good insight into the listing price of the house for sale. Many times, the realtor may not be so well informed however, or they may be among those who will put their personal interests above the needs of the client or seller.  Ask about their qualifications and time in the business.

Websites Such as Zillow

Checking out the prices of other real estate values in the same general area is always a good indicator of what is available on the local market and the price ranges that are likely to be paid for a house by a real estate investor. There may still be unforeseen circumstances that the homeowner is unaware of resulting in inaccurate listing prices being published, which will ultimately be detrimental to a quick and easy real estate sale.  707Realty.com now offers a "Value Mapping" program considered by many to be the most accurate program of its kind!  To see the value of your home using this program, click here.

When most or even all of these factors are considered equally for a prime piece of real estate, a more accurate understanding of what exactly mandates the fair local market value of a home will result. This will allow the homeowner to objectively look at all of the relevant information and come up with an asking price that is both fair and reasonable.

For the Real Estate Investor, a real estate investment is a financial transaction much the same as any other for any portfolio. The only difference is in the physical existence of the real property instead of an intangible stock or bond. As with any financial investments, it is necessary to look at all of the facts that are available in order to be able to make sound investment decisions whether it is for buying or selling the investment in question.  Click here for a sample investment analysis or an investment analysis on a property you

Setting the Price and Avoiding a Common Mistake

When pricing your home, you may consider the price you originally paid, plus improvements, then add a substantial markup and presume you’re done. This would be a grave mistake; one that could wind up costing you thousands or end in no sale at all. In order to price your home to sell there are many things that should be considered:

Educate Yourself

Visit local open houses and compare the location, condition, size and amenities of these houses to your own as objectively as possible. If your house is located in a neighborhood that is highly in demand, you will be able to get a higher price than you can for the same house in a less desirable area. A house that has been well-maintained will show better and, therefore, is likely to sell more promptly and for a higher price than one that needs work. When a house offers amenities that are currently popular in the marketplace, it will invite a higher price.

Abandon Your Personal Bias and Educate Yourself

In order to determine the market value of your home, you must objectively establish what someone else would pay for your house.

This means setting aside your emotional attachment to the many wonderful memories you have shared in your home. Some things to consider when determining the price of your home: total square footage, floor plan, construction quality, condition, amenities, lot size, topography, view, landscaping and neighborhood.

Obtain A CMA’s (Comparative Market Analysis) from 707Realty.com

 A CMA details the prices of similar homes recently sold, active on-the-market homes as well as homes that simply did not sell in your area.  The sold homes set the appraised value and the active on-the-market homes, show you the competition your home will have, as well as demonstrating what the current pricing trends are.  You listing price must be very competitive in order for your home to sell. 

Be wary of agents attempting to “buy” your listing. An agent practicing this technique will often sweet-talk you with their elevated price recommendation waiting only a few weeks to insist on a price reduction. Be mindful: a home on the market for extended periods become less saleable. People begin to wonder if there are significant defects with the property or whether the seller is truly motivated.  Again, review the pricing of your competition, a good agent will show you where your house fits in with the competition at any price point.  If your price is too high relative to the competition, you home won’t sell. 

Some agents suggest under pricing your home hoping to start bidding wars amongst hungry home buyers. While this technique may work to an extent in some markets, it is often a wiser decision to market your home at an appropriate price from day one.

(Please fill out this form at the end of this page for a free CMA!)

Calculate the Price per Square Foot

The average sold price per square foot of homes in your area can be of some help in determining a proper listing price for your home. However, it is not recommended you rely on this tidbit of information solely.  The problem with establishing a price using this model alone is that it does not take into consideration the size of your lot or the upgrades; it is simply based on the square footage of your house.

Evaluate Market Trends

How quickly are homes selling in your area? Are prices increasing or decreasing? Are you in prime selling season (typically during spring) or attempting to sell in the drooping winter season? How many offers are sellers typically receiving once on the market? These are only a few of many questions that your agent can help answer.  Your agent should know the Sonoma County market in detail and give you data to demonstrate market conditions and trends. 

What Major or Minor Problems Exist Within Your Home?

If you’re in a seller’s market you may not need to worry about fixing most problems in your house. Buyers are much more open to problematic homes when they are having a tough time finding one in the first place. However, if you’re in a buyer’s market it would be wise to fix as many problems in the house as you’re financial able to.

Either way, a home with problems will not generate as much value as a home in almost perfect condition (no home is perfect!). An advisable solution would be to evaluate the potential cost of repairs. Determine whether these costs could be recouped during the sale of your property. It is certainly worthwhile to consult your agent as well as other professionals for matters such as these. You will be able to discuss what inspections you might have done prior to placing you home on the market.  If can be a great help to a buyer and demonstrates that you are serious about selling. 

Jazz-up the Home

Homes in top condition with great curb appeal and priced competitively, sell fast.  Ask you agent for a detailed analysis of what needs to be repaired, repainted, replanted or replaced prior to putting your home on the market.  We call it “Merchandising” your home.  Make it shine and it will sell!

Jazz-Up the Deal
Often, buyers come to the table with terms that some sellers are not open to accept. Some include quick sales, lease-options, or asking that closing costs be paid by the seller. If you are motivated to sell offer something up front to attract buyers that may be interested in such terms.  Offer to pay for some of the buyers closing costs or upgrades.  It will set you apart from the competition. 

Getting Started

It’s easy – Just fill out the form below for your FREE Comparative Market Analysis! The 707Realty.com team is ready to assist you in meeting your objectives.