I have always told my clients that there are several things that sell a home.
1. Location
2. Price
3. Condition
4. Accessibility
| Price | Seller Concession | Interior Size | Days On Market | # of Price Reductions | Current Status | Beds | Full Baths | 1/2 Baths | # of Pics | Notes |
| $ 229,000 | $ - | 1, 930+ | 473 | 4 | Active | 5 | 2 | 0 | 10 | busy main street |
| $ 225,000 | $ - | 1,930 | 85 | 0 | Active | 3 | 1 | 1 | 11 | Solid house, needs some updating, no hardwood floors, low traffice |
| $ 223,500 | $ - | 1,930 | 528 | 2 | Active | 4 | 1 | 1 | 1 | low traffic |
| $ 219,000 | $ - | 1,930 | 16 | 0 | Active | 3 | 1 | 1 | 9 | solid house, needs updating - tenant occupied, low traffic |
| $ 199,000 | $ - | 1,930 | 140 | 1 | Expired | 4 | 1 | 1 | 8 | Many colors including carpet. Needs some updating, short sale, low traffic |
| $ 199,000 | $ - | 1,930 | 150 | 1 | Active | 3 | 1 | 0 | 6 | low traffic |
| $ 185,000 | $ - | 1,930 | 418 | 4 | Active | 5 | 1 | 1 | 2 | As-Is, needs work, low traffic |
| $ 209,000 | $ 7,500 | 1,930 | 185 | 2 | Settled | 4 | 1 | 1 | 10 | Neutral colors, updated, laminate floors, low traffic |
| $ 174,900 | $ 5,000 | 1,930 | 21 | 0 | Settled | 5 | 2 | 0 | 11 | high traffic |
| $ 160,000 | $ - | 1,930 | 120 | 0 | Settled | 4 | 1 | 1 | 3 | Handyman Special, House needs everything, high traffic |
| Subject Property | $ - | 1,930+ | - | 0 | - | 4 | 1 | 1 | 10 | Hardwood floors, laminate floors, replaced heater & added central air, replaced roof, replaced windows, replaced deck, ceramic tile, oak cabinets |
The table above is data related to a recent listing. The addresses have been changed so that I may speak freely about the other listed properties in the area.
PREVIEW
One of the first things that you MUST do is study your competition. You must know the condition and price of every home that is for sale in the area which you will be listing a home. What is the best way to do that? PREVIEW, PREVIEW, PREVIEW. I like to take my sellers with me on these previews. This gives them an idea of how their home stacks up against the other homes in the neighborhood. It also gives them an idea of what they must fix or improve in their own home.
ANALYZE
Once you have previewed the homes, you MUST analyze the data. I usually make a table like the one above. I want to see what the current asking & selling prices as well as how long homes have been on the market. In this neighborhood, there were 7 active listings. An interesting point was that a home had not sold in this development for more than 6 months. Most of the houses in this neighborhood were similar in size and property size. The big differentiation between the homes was condition and upgrades if they were located on the main road or a quieter side street.
PRICE
I ALWAYS tell my clients that we don't want to have the most expensive listing in the neighborhood. Even if we have the nicest home listed, we want to be priced at a competitive level. In this market, everyone is looking for a bargain. A home that is listed for top dollar is not considered to be a bargain by the potential buyers. In this case, the last similar home that sold was sold for $200,000 with $7,500 seller concession.. This was a very nice home, but it was smaller than our subject property, but in similar condition. The other homes listed for sale needed updates & repair. Homes in this neighborhood are 30+ years old. Many of the homes previewed still had the original windows and flooring. My client had updated all of the major systems in the home as well as the roof, windows and flooring.
My client felt that his home was the best home in the neighborhood and that he should easily be priced higher than $229K property on Rutgers Ave. I explained to him that 33 Rutgers has been on the market for 473 days. That said to me that the house was priced too high for the condition and location. I also explained that 45 Axlerod has been on the market for 528 days. Therefore $223.5K is probably too high of an asking price. .
So what is the price needed to move this home? Probably between $200 - $224K. The last home in similar condition sold for $200K (this was a smaller home). In addition, home prices in the area have been on a steady decline. We decided to list the home for $215K
THE RESULTS
We had an offer and acceptance in 25 days for 95% of the listing price. There were no price adjustments. I would say that this home was priced to sell. Each case is different and there are many variables that affect a potential sale. In this case, the strategy worked.
If you are looking to sell your home in Burlington County New Jersey and are looking for a Realtor and Real Estate Consultant, feel free to give me a call or send me a text message. I will gladly answer all of your questions.
Have A Great Day
Leander McClain, Burlington Township’s Top Realtor & Real Estate Consultant, EXIT Buyers Plus Realty, 15 E. Broad Street, Burlington, NJ 08016 609-505-6578(cell)
Leander - It is still possible to get a timely offer for close to asking in this market if priced right. You you sellers some great points to ponder.
Leander, very well thought out and and in depth analysis, but I'd expect nothing less from you. No wonder you are so successful.