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Top-Dollar Price for Tip-Top House

April 18, 2012 | Comments: 0 | Views: 175

If you want top dollar for your house, it shouldn't be hard to understand that a buyer will want a house that's in tip-top form and function if he is going to pay top dollar. This is why sellers need to take a realistic look at what has sold and what is out there as the competition. Is your house up to par with the sold and active listings? If not, and you're really serious about selling, then you have 2 choices that essentially come down to a financial bottom line:

1. Make your house competitively priced/lower the price or 2. Bring it up to par with your competition, which costs money.

Before you make a decision on which way to go, you need to evaluate a few things: Would the lower price exceed the cost of the repairs and updates to bring it up to par? Would making the repairs and updates actually yield you a higher sales price?

Nothing worthwhile is easy. There's a little homework involved in determining which way to go:

If you can do the repairs and upgrades yourself, make a list of the materials you need, add at least 10% for waste, and then price the materials. If you can't do the work yourself (or can't do some of the work), get some quotes/estimates from contractors. Once you have established the cost of repairs and upgrades, talk to a Realtor to find out what your home is likely worth both in its present (as is) and repaired/updated states. Obviously, the cost of your proposed work shouldn't exceed the difference between the "as is" worth and repaired/upgraded worth. And equally so, if there are $30,000 in repairs and updating needed and your Realtor recommends a $10,000 drop in price, then the price drop is $20,000 smarter. However, if, for instance, the home's increase in value is $10,000 after you make repairs costing $3,000, then that's a great return on your investment, especially considering your home will sell faster than those that don't show as well.

Having said all that, there are still other considerations. If the price drop appears to be the better financial way to go, then how long will your house stay on the market even with the price reduction because your home shows poorly compared to other homes? You need to remember that the longer you hold onto a house, the more money you spend in mortgage interest, utilities, property taxes, etc, not to mention the hassle of months and months of trying to live in a house while keeping it tidy for showings. In this case, if you are looking to sell because you can't afford the monthly costs associated with the house, you need to factor in the cost of holding the house if it takes 3 or more months to sell and close. Check out this home staging calculator to see how much you could save by staging your home. Another financial factor for selling may include selling because you need to live closer to work. With ever-rising gasoline prices, you need to factor in the cost of getting to and from work during the months that your home is NOT selling (but subtract the cost of the proposed commute if you were to live closer to work), and then add in the lost income, if applicable, that you could make if you did live closer to work.

You should consider every financial factor when evaluating whether or not to spend the money on repairs, updates or home staging when selling your home. The bottom line may just surprise you!

By Jeanie Long, Professional Stager and Realtor Greater Erie, PA areahttp://www.cremepuffhomes.com

Source: EzineArticles
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Top Dollar Price


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Sell House


Tip Top Shape


Price Drop


Home Staging


Price Reduction

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