Friday, February 22, 2013

Home Pricing is Critical

Overpricing a home can have many ramifications for a home seller.  It can limit the number of potential buyers who can afford your home, reduce showings and create an impression in the marketplace that the homeowners are not serious about selling their home.  Serious homeowners who overprice their home often get caught in the trap of price reduction after price reduction trying to catch up to the market.
During the past year, U.S. home sellers slashed more than $24 billion according to Trulia’s Q1 Home Offer Report indicated that on average, most sellers will reduce their list price after 79 days on the market, choosing to cut their original list price by 8 percent. Following a first reduction, 35 percent of these sellers will make a second.
Most home buyers look at 10-15 homes before making a buying decision. Because of this, setting a competitive price relative to the competition is an essential component to a successful marketing strategy. Under pricing a home isn’t good either- educating your clients about the importance of properly pricing a home is key to the home sales process.
Most experts would advise that the best way to increase your odds of a successful sale is to price your home at fair market value. But, as logical as this advice sounds, for many sellers it is still tempting to tack a few percentage points onto the price to "leave room to negotiate". To avoid this temptation, below are seven common problems associated with overpricing your home:

1. Appraisal Problems
Even if you do find a buyer willing to pay an inflated price, the fact is over 90% of buyers use some kind of financing to pay for their home purchase. If your home won't appraise for the purchase price the sale will likely fail.

2. No Showings
Today's sophisticated home buyers are well educated about the real estate market. If your home is overpriced they won't bother looking at it, let alone make you an offer.

3. Branding Problems
When a new listing hits the market, every agent quickly checks the property out to see if it's a good fit for their clients. If your home is branded as "overpriced", reigniting interest may take drastic measures.

4. Selling the Competition
Overpricing helps your competition. How? You make their lower prices seem like bargains. Nothing is worse than watching your neighbors put up a sold sign.

5. Stagnation
The longer your home sits on the market, the more likely it is to become stigmatized or stale. Have you ever seen a property that seems to be perpetually for sale? Do you ever wonder - What's wrong with that house?

6. Tougher Negotiations
Buyers who do view your home may negotiate harder because the home has been on the market for a longer period of time and because it is overpriced compared to the competition.

7. Lost Opportunities
You will lose a percentage of buyers who are outside of your price point. These are buyers who are looking in the price range that the home will eventually sell for but don't see the home because the price is above their pre-set budget.
Most buyers look at 10-15 homes before making a buying decision. Because of this, setting a competitive price relative to the competition is an essential component to a successful marketing strategy.

Most agents offer a complimentary CMA(Competitive Market Analysis) of your home. Interview several before deciding who to list with.  

Wednesday, February 13, 2013

Chris Tuite and Boston Real Estate

Lewis Wharf Owner........      

"Chris is the consumate professional as a real estate agent. In addition to his great attitude and superb personality his knowledge of the Boston real estate market is second to none. He has never let us down with finding great people to rent and his advice has been excellent. He has a great feel for the market and his integrity and inventive thinking make him the one person we go to for our real estate needs."

Real Estate Lawyer......

"I have had the distinct pleasure of working with Chris on several real estate transactions that he was involved in as both, a listing agent and a buyer’s agent and found him to be exceptionally thorough, diligent and overly conscientious of his client’s objectives. He also has a keen sense of current market conditions which serves as a tremendous asset when he is negotiating on his client’s behalf. And, he approaches the resolution of any issues that arise in a very practical manner so as not to compromise the transaction but at the same time attaining his client’s objectives at hand." 

North End Property Owner........

"I met Chris while I was working as a community liason consultant for a real estate developer where he was the realtor responsible for selling the condo units. Chris was and is very professional and his company is one of only two Realty offices ( out of 8 or 10 ) in the North End of Boston I would use or recommend."

Franchise Sales Associate.......

 "It was a pleasure working with Chris as a RE/MAX franchise owner. Always professional and dedicated to both his employees and his business, he takes great pride in the quality and reputation of his work and that of his team. Chris' high levels of performance and results have built him a reputation that speaks for itself."

Harbor Towers Owner..........

"We used Chris when returning to Boston after a 6-year absence. During those years, he kept us current on waterfront property sales; filtering out all but those in our price range and target locations. Chris is a professional, low-key, advsior and agent. We will gladly refer him to others. 

Home Buyer.........

 "I have had the opportunity to work with Chris over the years. He has been a customer of mine for a long time and has always been loyal and on the ball. I had the opportunity to work on the other side and be a customer of his recently. I was impressed with his knowledge of real-estate and follow through. Although I did not get to work with him on the property I would use him in the future for sure. I highly recommend Chris and his company for any real-estate needs and I feel he is the “go to” person for purchasing real-estate in NewEngland period! You will not be disappointed having him represents you I guarantee it.