How Your Lakeland Fl Home for Sale Can Compete With Short Sales and Foreclosures?
Recently I was meeting a homeowner in a community where there were quite a few homes listed as short sales and foreclosures. Foreclosures in this community where flying off the shelves so to speak, so the home owner asked me, “How can your Lakeland Fl home for sale compete in a market dominated by short sales and foreclosures?
First, you have to know that your Lakeland Fl home for sale’s market value is directly affected by distressed properties in your neighborhood.
Appraisers now pay close attention to the number of closed sales of distressed properties as well as those that are currently listed. What is a regular seller supposed to do to compete?
Pricing a regular home for sale in Lakeland Fl against short sales and foreclosures is a mix of science and emotion. You have to be able to think both like a seller and also a buyer. It doesn’t really matter how much you think your Lakeland Fl home for sale is worth if the buyer does not agree.
Here are three questions to help guide you in pricing your home for sale in Lakeland Fl:
1. What would make the buyer choose your home over a short sale or foreclosure?
2. Why would the buyer’s lender appraise your Lakeland Fl home for sale higher than a short sale or foreclosure?
3. How much more is your Lakeland Fl home for sale worth than a distressed property?
You may be surprised with your answers. You will find out that your Lakeland Fl home for sale is worth not much more than a foreclosure, even with all the upgrades you add in. Appraisers don’t really care too much about upgrades anymore. If all the recent sales in your area are short sales or foreclosures, then it will greatly affect your home’s value even with equity.
Home buyers now are looking for bargains, that’s why short sales and foreclosures sell. Even if they need a bit of repair, buyers think they will still end up with a good bargain. If your Lakeland Fl home for sale with equity is in good shape and priced within the range of distressed properties, then buyer will most likely choose your home over the short sales and foreclosures.
One very useful tip is to examine comparable sales of short sales and foreclosures in the neighborhood over the past 3 months. Make sure to compare apples to apples. Pay attention to homes with similar square footage to your home for sale, within 10% more or less from your home. Compare homes with similar ages.
Once you get the values of comparable sales, make sure to price your Lakeland Fl home for sale among distressed properties a little below market value. This will drive more offers to your home, with more buyers trying to outbid each other and eventually bringing your sales price higher in the end.