"Market value is what a buyer in any given market is willing to pay for your home given the current conditions... based on what other homes are available and who is looking to buy at that particular time."
I coorelate market value to a credit report, it can change frequently and it just depends on the day the credit report is pulled.
In the Ann Arbor area marketyour house ABSOLUTELY had to be "priced to sell". The market is changing and CMA's need to be updated every couple of months.
For instance, I sold a home in Meadowinds, in June for 380,000. (yes that is the correct legal spelling) It sold in 4 days and was listed at 385,000. It was owned by a decorator and the colors were wild. Her daughter's bedroom was orange, the gathering room was purple. Nice home, on a cul-de-sac. But, obviously the new owner was going to need to paint.
Because I was able to get a contract so quickly the neighbors next door trying FSBO, called me. There house was in much better shape, neutral decor, better floor plan. I listed it at 398,000. (Their price as a FSBO) This was at the end of July; we reduced to 389,900 a few weeks later. Then we reduced it again to $385,000.
We had 5 offers on it all around the $365,000.
I convinced my sellers on offer number 5............"Look, the market has spoken". All five offers are coming in at the 365,000.00 range.
So only a few months later, in Meadowinds Subdivision, the second home sold for much less than $389,900.00 The second home had a better floor plan, less work to do, same square footage, both with finished walk-out basements sold for less.
In Ann Arbor the market peaks in July every year. We experience over 74% of our closings by the end of August. What happened?
Market values change, it is a moving target.
Rationally one would expect to get the same value or higher on the more updated home, with more amenities and less work. Yet, the market spoke at $365,000.00.
Again: "Market value is what a buyer in any given market is willing to pay for your home given the current conditions... based on what other homes are available and who is looking to buy at that particular time."
Current homes in Meadowinds are priced at: $328,000.00 and $298,000.00
Other homes the Missy Caulk TEAM has sold in Meadowinds are:
1956 Harley
1980 Harley
1930 Harley
1968 Harley
Missy Caulk & Team can be reached at 734-926-9797 or email: Missy@MissyCaulk.com
Our Team of 6 agents are available to help you relocate to Ann Arbor, Saline, Dexter, Chelsea, Milan, Ypsilanti Township, Clinton, Manchester, Whitmore Lake, or throughout Washtenaw County, MI.
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Missy, tremendous emphasizing the point on your part. The market never lies. It is what a willing buyer (or in your case five offers) are willing to pay to buy the home. Yes, a few months change in time can make a big difference. I very much liked your use of real world examples. It cuts through the clutter and presents the facts as they are, like them or not.
Missy, very well said. I'm sending my sellers to your site to read this. You've illustrated it in such a clear manner I believe it will help them understand just how quick things may change on a weekly, monthly and annual basis. Great post! Enjoy your day. Regards, Carolyn.
Missy--I had a similar conversation with sellers and pricing just last week. It doesn't matter what a house sold for last year even last month....It is what is a buyer offering today! Sad but true that with less buyers, offers are often less too!
This is so timely. I just wrote about how color can actually help a home sell and it is not always necessary to neutralize a home to the point of being boring. Obviously the market changed in this case which caused a lower price overall but maybe the first one sold quickly because it was so eye-catching?
Missy- I almost missed your post because I did not recognize the photo up on my reader board. I am so used to looking at the photos and not the names!
market reports come in all shapes, forms and whatnot, and we like'em all. this "expert" thing is catchy!
best
Missy, you hit it on the head. It is worth only what some one is interested in paying.
If your photos are in sequence with your post, then I would say the top photo has better curb appeal. It also has a 3-car garage. In our market, that's worth an extra $15K. When selling in these "cookie-cutter" subdivisions, sometimes the differences the buyer likes or doesn't like are very subtle. And in these types of subdivisions, sometimes it's really hard to convince a seller that THEIR home can't sell at the same price as another one.
5 offers in the mid $260's is pretty convincing.
Thanks Missy for sharing.. I love the outlay of your post... It really helps the seller to take another look at the price and let them make that decision on how motivated they are willing to sell.
Missy, What an excellent way to put it "The market has spoken." Very true and I'm glad you're so busy and doing so well. The Meadowinds sounds like a nice area.
Perfectly done Missy. Whenever I hear a seller say the word "appraisal" I cringe and explaing "market value" and how it changes, sometimes weekly in my area.
Missy - This is a concept that many sellers have a hard time understanding. In my market we still have sellers dreaming of the market prices of two years ago, and of course the properties will remain on the market for a very long time.