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Facts About Pricing a Home

What are the features of the home?  Does it have an upgraded roof, kitchen, bathroom, windows, air-conditioning, etc?  Newer features will help sell a home for a higher price.

What is the square footage of the home?  Smaller homes may seem to be selling for too little when compared with the higher priced larger homes.  Sometimes it is helpful to compare the price per square foot to determine how the value of the house compares with others in the area.

What is the high price in the neighborhood?  It is often difficult to sell a home for a price that is much higher than the highest priced home in the area.  For example, a home that is double the size of other homes in the area may not sell for double the price.

How quickly does the seller need to sell the home?  A high-priced home will often take longer to sell than a low-priced home.  If the seller doesn’t care how long it takes to sell the home, they can put a higher price on it and wait for the right buyer to come along.  The danger is that the house may sit on the market and people begin to think there is something wrong with the house.

What is the direction of the market?  Many areas in Southern California are currently experiencing some leveling off of prices .  Although interest rates are still low, the threat of higher interest rates and additional homes sitting on the market seem to be exerting downward pressure on home prices.  Many in the real estate industry believe this is simply a return to a normal market.

When you need a loan for your new home, the lender chooses an appraiser to evaluate the price of the home.  An appraiser considers the neighborhood, the condition, square footage and features of the home in determining the value. 

The appraisal is necessary to protect the buyer of the home as well as the lender.  In most cases you don't want to pay more for your new home than market value. 

And, since the lender is risking capital when they give you the loan, they need to make sure that the home is appropriately priced.  Otherwise, the lender could lose their investment. 

For example, if the buyer defaults on the payments and the house was overpriced, the lender would need to sell the home.  If the home was overpriced when it was purchased, it might not sell for the original price and the lender's equity would be lost, especially if the buyer did not make a substantial down payment.

As the buyer, if your new house does not appraise for the full amount of your offer, you can use the following strategies:

• You can renegotiate the price with the seller.  Often the buyer and seller will work out a price between the asking price and the appraisal value.
• You can order another appraisal to get another person's opinion of the home's value.
• You can still purchase the home at the original price.  You just need to pay the difference between the purchase price and the amount the lender will loan you. 

Here is an example of the way the last option would work:  Assume the purchase price is $500,000 and the appraisal is $450,000.  If the bank is willing to lend you 80% of the appraised value, you would need to pay $90,000 to cover your 20% PLUS the extra $50,000 over the appraised value.  Your total down payment would be $140,000. 

If you do not need to borrow money to purchase the home, you can still choose to have a professional appraisal done to make sure that the house is appropriately priced.  A buyer may want to do this for a unique property that does not have adequate comparable properties in the neighborhood.

If you have questions about the value of YOUR home - call Cathrynn Frederick at

562-640-0502

The way you live in your home and the way we market and sell your home are two different things. 

When we live in our homes, we want our family pictures visible.  We want our unique treasures available to see and to use.  We want our animals and family to feel safe and cozy.

When you put your house on the market, the focus changes.  Your focus needs to be on what the buyers see.  We want the house to appear in its best possible light.  Buyers need to see the home’s features.  They need to imagine how their furnishings and accessories might look in their new home.   

Most buyers will purchase a home that doesn’t need much work.  It takes a lot of energy to move.  It feels like less work to move into a spacious home that is simply furnished and attractively accessorized and sparkling clean.  Staged homes often sell more quickly in a slow market and can sell for higher prices in a hot market.

What Does Staging Cost?

The cost of staging is less than the cost of your first price reduction. 

Cost depends on the size of your home and the number of recommended changes that you decide to make.  My focus is primarily on simplicity, creativity and using the client’s existing possessions as much as possible.

Cathrynn Frederick has successfully completed the course curriculum and has passed the required examinations to obtain the designation of Accredited Staging® Professional™ Realtor®. 

Staging® is a Federally Registered Trademark of StagedHomes.com.  Accredited Staging Professional (ASP) is a Trademark of StagedHomes.com.

The GRI designation is recognized by many real estate professionals nationwide as the most advanced and comprehensive training program available.  It displays to the buyer, seller and other real estate industry members that Cathrynn is a true professional who has a solid grasp of real estate fundamentals.