Proper Pricing on New Listings

Should you start out with a HIGH listing price? Many sellers think there is nothing wrong with pricing a property "too high" when the listing is new because they can always lower the price later. I came across this article today that helps explain why this is a bad strategy.

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Because of the change in real estate market conditions, more sellers are competing for fewer buyers. So once again, it seemed important to challenge a long-standing "myth" of real estate.

"The initial listing price isn't that important because the price can always be adjusted down later."

Many homeowners believe this.

It is a myth.

Not true.

If most buyers first viewed your house because of a newspaper ad, a magazine, the internet, brochures, or the sign in your front yard, the initial listing price probably would not make a difference. The house would always be "new" to those seeing it.

But most buyers do NOT come to your house because of various types of advertising. That is the another myth.

Sure, buyers call on an ad, they often LOOK at that house, but not always. Once they talk to an agent, they may discover it isn't what they need (or want) at all.

However, they ARE talking to an agent. That agent knows the current inventory and will know of other property that DOES fit their needs.

Those are the properties that buyers look at, and THIS is how most buyers end up looking at your house, too. Because of other agents, not because of your ad.

Hardly anyone buys the house in the ad.

As a result, you need to get other agents interested in your property, and this is where your listing agent comes in...and why a good listing agent is extremely important. The listing agent gets buyer's agents looking at your home.

Those agents have clients who called in on other properties.

Buyer's agents are not swayed by advertising. They look at the needs of the client, where the client wants to live, location, condition, and other details of the property...

And most importantly....

...price.

If your house is overpriced, agents are going to show similar homes that are priced more attractively. Your listing will get passed over.

Agents pay MOST attention to homes newly on the market. There are fewer NEW listings than current listings. It is easier to keep an eye out for what is NEW, compared to the vast number of current listings.

New listings are on the "hot" sheet circulated in real estate offices. The MLS computer identifies new listings. Your listing agent may hire a service to distribute fliers to all the buyer's agents. There are office previews and MLS tours to showcase new listings. A lot of attention is focused on what is NEW.

With agent's looking at newly listed homes so aggressively, a properly priced home gets attention.

An overpriced home gets passed over.

Continue reading the article here.
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Buying a Home With Resale Value

When you are thinking of buying a home, it may be time to get back to basics and focus on what makes for good resale value. Location, Location, Location.

Location – Local Community, Town or City

Before you can actually pick out a house, you need to choose what communities you would like to live in. There are many factors you should pay attention to, not only for yourself, but because you intend to eventually sell the home to someone else. Carefully choosing your community is the first step in "location, location, location" and can help maximize your future potential resale value.

Economic Stability

When choosing a community for your purchase, it makes the most sense to buy in a community with a viable and stable economy. Five, ten, or even fifteen years from now – when you want to sell your home – you can have a reasonable expectation that your community will still be a desirable place to live. In addition to residential neighborhoods, there should be a healthy mixture of commercial and business districts. These not only provide jobs to the local residents, but also add an income source that the city can use to upgrade and maintain roads and city services. In fact, you should take a drive and see how well the community is maintained. You have probably heard of "pride of ownership" when referring to an individual home or an automobile. Look to live in a community that demonstrates community pride, as well.

Local Government Services

In addition to community pride, check on the services provided by local government. One example would be the local library system. Are there several library branches? Do they stock a good selection of books, including recent best sellers? You should also look into local crime statistics and see how the city compares to the national average and other local communities. Is the police force effective and responsive to community needs? Are fire stations located strategically around the community so that they also can respond quickly in an emergency? Another area of inquiry is community services. Does the community sponsor youth sports and have well maintained athletic facilities and parks? Do they sponsor community events, such as an annual parade? Are there activities available for children, teenagers and senior citizens?

Schools

Even if you do not have school-age children and do not intend to have children, you must pay attention to the local school system. That is because when you sell the property, many of your potential buyers will have concerns of this nature. You will want to know if the local schools are overcrowded. Take a drive around and see if there are auxiliary trailers outside the local schools. Call up the local school district and see if elementary aged children always attend the school closest to their home. If not, ask why. Are there enough schools to support the local population? If not, are there plans to build new schools? How will building new schools affect local property taxes? You should also check to see how local students score on the standardized tests. There are school reports available for free on the Internet, including my Web site.

Property Taxes

Property taxes may be higher in one town than another nearby city. This can sometimes affect whether potential homebuyers view a community as a desirable place to live. Often, they will choose not to purchase in a community with higher taxes, though this decision is not always justified. Higher property taxes often mean newer and more modern schools, well-maintained roads, and bountiful community services. In addition, you will often find that the "cost per square foot" of homes is lower in cities that have higher property taxes. This means you can buy a bigger house for less money. Since the mortgage payment may be lower, but the property taxes a bit higher, the monthly housing costs may be approximately the same in each city. If resale value is important to you, make property taxes a consideration when choosing the location of your new home.

April’s Hot Picks

If April’s showers are keeping you indoors, here are some idea’s to help pass your time:

Now-May 15, Sports Heroes/National Art Museum of Sport – If you appreciate sports and art, make your way to IUPUI’s largest collections of sport themed art works in the world. Here you will find historic collections of photographs, paintings, and memorabilia profiling several Sport icons from Muhammad Ali to Jeff Gordon. Best of all….it’s free!
Admission: Free Location: University Place, 8am-5pm Info: 317-274-3627

April, IMAX Theater – Here’s your chance to see if there really is life on Mars. IMAX Theater will be featuring the recordings of the Mars rovers, Spirit and Opportunity recorded during their adventures on the Red Planet.
Admission: $9 Adults/ $6 Children Location: IMAX Theater Info: 317-233-4629

April 13, B.B. King – The King of Blues is back to promote his latest album, “B.B. King and Friends” featuring duets with artists such as Eric Clapton, Elton John, and Sheryl Crow. This show is surely not to be missed by one of music’s greatest legends.
Tickets: $49.50-$65 Location: Murat Centre, 8pm Info: 317-239-5151

April 22, Race for the Cure – Of all races to come to Indiana, this is the most important to me since my mother is a survivor of Breast Cancer. Once again, the Susan G. Koman Breast Cancer Foundation returns with their annual race where over 40,000 runners and walkers join to raise money and hopefully one day find a cure. Will you be there?
Tickets: $25-$80/kids under 8 free Location: IUPUI Library Lawn Info: 317-638-CURE
Website: www.komenindy.org

April 22, African American Dance Ensemble – Enjoy a night of culture and pulsating beats of dance full of choreographic moves with Chuck Davis’ North Carolina based ensemble.
Tickets: $12-$15 Location: Madame Walker Theater Info: 317-236-2099

April 27, Happy Hour at the Symphony – If work has you stressed out; let Jennie DeVoe help you unwind with a new twist at the Symphony. Enjoy this new concert series with free drinks and appetizers from Corazon Tequila, Starbucks, and Scholars Inn before enjoying an hour of folk-culture dance music from Dvorak, Glinka and other special guests. Happy hour begins one hour before show.
Tickets: $15 Location: Hilbert Circle Theater, 6pm Info: 317-639-4300

April 29, Decorator’s Show House – The buzz has been going around town for a while now and the date is finally here! Everyone wants to know what Stephen Hilbert’s former home looks like inside...well, now is your chance. This 23,000 square foot, 33 acre mega mansion will promise beautiful design and great decorating ideas plus a bunch of ooohhs and ahhhs! By the way, it is still for sale….
Tickets: $15 Location: go to www.decoratorsshowhouseindianpolis.com Info: 317-767-0390