Calculating Your Asking Price

 

The best answer is get help from a real estate professional. But, if you only have a few minutes for a video, here are five points to consider.

1. Start With Measurement Learn the average per-square-foot price for recent sales in your neighborhood. That will not set your final price, but it is a baseline buyers will use.

2. Get Comparisons Ask for Comparative Market Analysis – comps – from several agents. Go through each comp with each agent to understand both competitive homes on the market AND each agents potential approach to yours.

3. Market Research. Do your own! – not just online, but in person. That will help you understand your market conditions and the buyers perspective realistically. Markets get hot and cold, up and down, and yours defines the sales envelope for your home.

4. Consider All Terms Price isnt all there is to a sale. Can you close faster? Finance or lease-option the sale yourself? Cover some closing costs? Your flexibility can make sales leverage.

5. It is Not Personal. The hardest tip of all. Most people are emotional about their home. Pricing, in the long run, is going to logical. Theyre buying your house,not your home & memories. Find a real estate professional you like and trustand let them help you through the process.

Where Are Mortgage Rates Headed? This Fall? Next Year?

The interest rate you pay on your home mortgage has a direct impact on your monthly payment. The higher the rate the greater the payment will be.

Mortgage Rates

That is why it is important to look at where rates are headed when deciding to buy now or wait until next year.

Below is a chart created using Freddie Mac’s July 2015 U.S. Economic & Housing Marketing Outlook. As you can see interest rates are projected to increase steadily over the course of the next 12 months.

Mortgage Rate

How Will This Impact Your Mortgage Payment?

Depending on the amount of the loan that you secure, a half of a percent (.5%) increase in interest rate can increase your monthly mortgage payment significantly.

Dr. Frank Nothaft, the SVP & Chief Economist for CoreLogic, had this to say in their latest Market Pulse:

“If you are thinking of buying a home and have the financial means to do so, this could be a good time to take a look at the neighborhoods you are interested in. We expect home prices in our national index to be up about 4.3% in the next 12 months, and mortgage rates are also likely to increase over the next year.”

If both the predictions of home price and interest rate increases become reality, families would wind up paying considerably more for their next home.

Bottom Line

Even a small increase in interest rate can impact your family’s wealth. Meet with us to evaluate your ability to purchase your dream home. Remember We at the ASSAL team want to make sure you get the lowest mortgage rate possible, while reaching your goal faster, easier and with a smile on your face! Give us a call today at 786.554.8063 or send us an email at george@georgeassal.com– you can count on our help every step of the way.

Selling Your Home? Price It Right From the Start!

In today’s market, where demand is outpacing supply in many regions of the country, pricing a house is one of the biggest challenges real estate professionals face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their customers happy. However, we realized that telling the homeowner the truth is more important than getting the seller(s) to like us.

Price It Right

There is no “later.”

Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.

John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered the their price. In his article, Listing Price, Time on Market and Ultimate Selling Price published in Real Estate Economics revealed:

“Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”

Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think, “Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.” Pricing it right from the start eliminates these challenges.

Don’t build “negotiation room” into the price.

Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house.

Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If seller is looking to sell their house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it!

One great way to see this is with the chart below. The higher you price your home over its market value, the less potential buyers will actually see your home when searching.

Price Visibility

A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house.

Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?

The Price is Right

Great pricing comes down to truly understanding the real estate dynamics in your neighborhood.  Our team will take the time to simply and effectively explain what is happening in the housing market and how it applies to your home.

Our team  will tell you what you need to know rather than what you want to hear. This will put you in the best possible position.

Thinking of selling your home and not sure how to price it right?  Call us, We at the ASSAL team want to make sure you price your home right while reaching your goal faster, easier and with a smile on your face! Give us a call today at 786.554.8063 or send us an email at george@georgeassal.com– you can count on our help every step of the way.

DORAL – Market Insight

Doral THE ASSAL TEAM

Doral is a city located in north-central Miami-Dade County, Florida, United States. An industrial and suburban mixed neighborhood of Miami, it lies North-West of Miami International Airport. It takes its name from the Doral Golf Resort & Spa located within its municipal boundaries. Originally built by Doris and Alfred Kaskel, who coined “Doral” by combining their first names, who dredged the swamp to build, in 1962, the Doral Hotel and Country Club, (now Donald Trump’s Trump National Doral) a wildly popular wealthy golfer retreat and sibling hotel to the Doral Beach Resort in Miami Beach. The city of Doral is also known as Doralzuela due to the city’s large and affluent Venezuelan community. Doral has a large number of shops, financial institutions and businesses, especially importers and exporters, primarily because of its proximity to the Miami International Airport. In 2008, Fortune Small Business and CNN Money ranked Doral as 51 on a list of 100 cities with the best mix of business advantages and lifestyle appeal.

Doral SOLD in the past 30 days
Doral SOLD in the past 30 days

By the early 1980s, Doral started to experience the first spurts of growth when Alfred’s and Doris’ grandson Bill developed Doral Estates that was followed by a joint venture with Lennar Homes to build Doral Park. Both communities were named after the Hotel, a trend that was to be repeated many more times. Younger families started flooding the area but had to travel to purchase even the most basic essentials, because there were no stores, schools, or parks. Although the majority of the original homes were investment properties or second homes, the early fulltime residents believed that the quality of life and the low housing costs far exceeded the lack of amenities and started coming together as a community.

Doral SOLD by the ASSAL team
Doral SOLD by the ASSAL team

In 2002, the Governor appointed Cancio to fill the remainder of Commissioner Miriam Alonso’s term of office. Doral residents hoped that his appointment would be the impetus to bring the community closer to incorporation, and Cancio did not let his community down. In the meantime, Cancio named Juan Carlos Bermudez, the City of Doral’s first elected Mayor, as his replacement to the Community Council. Bermudez declined the offer and ran for the seat and was elected. At the time, Bermudez was president of One Doral, a civic organization formed to counteract the perceived influence of the West Dade Federation on the Council. One Doral and the West Dade Federation were instrumental in the incorporation process.

Services offered by the ASSAL team
Services offered by the ASSAL team

In January 2003, following a seven-year battle, 85% of the voters in Doral voted in favor of incorporation. At long last, they had their own new city with a local government and more service for their tax dollars. In June of the same year, 92% voted to accept the City Charter and elected their first Mayor and City Council.

The City of Doral has come a very long way in a very short time and is attracting positive attention from Fortune 100 corporations, mom-and-pop businesses, young families and retirees.

Interested in Selling, Buying, Renting a home/townhouse in Doral? Call me 786.554.8063; I can help, because working with someone who knows the numbers and area is crucial.

Contact me for more info
Contact me for more info