Mike Lightbourn's Bahama Advice Column
My Home Won't Sell! 2017-11-10 12:03:48 by Mike Lightbourn
The home was on the market for a month without a single serious inquiry.
The owners shook their heads in frustration. Why wasn’t the property showing? After all, it was well maintained and in a desirable neighbourhood.
To many, the answer would be obvious.
The property was overpriced.
When a home hangs around the market and no-one’s making a serious offer, it’s overpriced. Plain and simple.
“But the house around the corner sold for this amount a couple of months ago,” an owner might argue.
Maybe it did, but there would be a reason. The home that sold might be bigger, better configured or located on an elevation instead of in a dip prone to flooding Or it might have a modern kitchen and bathrooms, was in better condition, etc. You get the drift.
In order sell for the highest price, the list price must be realistic from the start.
It must speak honestly to the value of the home and it must be appropriate to the block of buyers who will qualify for a loan within the corresponding price range.
One of the biggest mistakes sellers make is inflating the list price to correspond with the amount paid in home upgrades.
This is what we call a Value versus Cost issue.
Roof and window upgrades can be very expensive, but buyers expect to buy into a home with a roof and windows that are in good repair without having to pay for renovations.
The exception would be high grade shingles and hurricane impact windows, but even then, the buyer will not recoup the full cost of the upgrade.
The market determines what a house will sell for. Our fortunes are tied primarily to the United States, although what happens in other economies can sometimes have an impact on the Bahamas real estate market as well.
Prices adjusted downward in the Bahamas following the global recession, but the market is on the rebound.
When you choose a Bahamas Real Estate Association licensed agent to list your home, listen to his or her advice regarding price. They will be guided by scientific data, not emotional attachment to a home.
Bahamas real estate agents are qualified to understand the economic intricacies of determining market value and list price.
Sellers are not.
Your sales price is not determined by what you put in your pocket. Remember that! That does not work.
Questions? Email me at ask@cbbahamas.com.
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(Mike Lightbourn is president of Coldwell Banker Lightbourn Realty) See All Entries...