My Macomb County MI Home or Condo Didn't Sell. Now What?

Chesterfield, MI – Rick Giese of RE/MAX Advisors "Almost every month I receive postcards in my mailbox at home from Real Estate Agents bragging about a property they, “SOLD…IN JUST 2 DAYS…or 1 DAY, etc.” Priced right or under priced?
 
 
How would you feel if you found out you lost out on $10,000.00
How would you feel if you found out you lost out on $10,000.00
 
CLINTON TOWNSHIP, Mich. - May 5, 2015 - PRLog -- Chesterfield, MI – Almost every month I receive postcards in my mailbox at home from Real Estate Agents bragging about a property they, “SOLD…IN JUST 2 DAYS…or 1 DAY, etc.”  Whenever I see advertisements like this, the first thought that comes to mind is, “Was the home underpriced?”  What if it was listed for $10,000 more?  Would it have sold in 30 days?  45 days?

Overpriced homes do not sell; however, underpricing a home is just as bad, because it results in less money in the Seller’s pocket.  The best scenario for home sellers is to price their homes correctly…but what exactly does this mean?

The internet has changed the way Buyers search for homes.  Never before in history have homebuyers had the ability to search for homes on web sites like Zillow, Realtor.com, Trulia, Redfin, etc.  Not only do homebuyers have the ability to view homes for sale, they can also research how much homes have been selling for in any particular neighborhood.  Savvy internet homebuyers will know right away if your home is priced correctly.  The best and most aggressive marketing plan WILL FAIL if your home is priced too high.

Pricing a home correctly involves a variety of factors.  First, Sellers must take the appraisal into consideration.  Almost 100% percent of homebuyers will be obtaining a loan from a bank or credit union.  Every bank will require an appraisal as part of the loan process.  The appraisal cannot be ordered by the Seller (maybe the appraiser is the Sellers friend, brother or cousin?)  Therefore, the Buyer’s lender will order the appraisal (paid for by the Buyer) and if the home fails to appraise, the Buyer has the right to walk away from the deal.  In the past decade, Banks lost trillions of dollars due to the housing crash of 2008.  Never before have lending institutions been stricter about appraisal criteria.

If you’re a Seller, and your home is overpriced, you run the risk of every agent in the city advising their clients NOT to write offers on your home.  Why?  It’s simple.  Imagine you’re a Real Estate Agent who works with Buyers and you’ve been working hard to grow your business.  You find someone who hires you to help them find their dream home.  You drive around for several weekends, spending money on gasoline, lunches, paying to keep your car clean, etc.  Finally, you place an offer on a home and the Seller accepts the offer.  Upon contract acceptance, the Buyer (at their expense) must order and pay for the appraisal.  (Typically $400-$475)  Additionally, smart Buyers will do a home inspection (Typically $250 - $400) within the first 7 days after acceptance.  Inspections are also a Buyer expense.  Between the appraisal and home inspection, the Buyer has now spent $650-$900 out of their pocket.  If the home fails to appraise, the Seller is under NO OBLIGATION to lower the price.  Therefore, the Buyer must pay the difference out of their pocket (which they rarely do) or walk away; losing the money they paid for the home inspection and appraisal.  When this happens to a Buyer, it’s only natural for them to get upset with their agent and say, “Why didn’t you warn me that the home might not appraise?”  Sometimes the Buyer will choose to fire their agent and find new representation. (For good reason)  Showing overpriced homes not only puts the Buyer in a bad position, it’s also a bad business practice for Realtors®

Rick Giese associate broker at RE/MAX Advisors specializes in Seller Representation.  Rick Giese licensed in the state of Michigan as a Valuation Specialist, which licensed needed to help appraisers. Rick will show you how to price your home correctly, and is flexible working with Sellers who wish to list a little high.  Rick Giese says, “We’re not interested in getting the quick sale.  Our goal is to get the BEST sale for our clients.”  Additionally, Rick says, “We specialize in internet marketing.  Since 90% of today’s homebuyers are searching the internet for homes, this is where your home needs to be, however, the best marketing plan in the world will fail if your home is overpriced.  We can get people into your home with our advertising and professional photography; however, if you’re getting showings, but no offers, then it’s likely your home is being perceived as overpriced.”

Want to know today's present market value of your home or condominium? Check out our online Market Analysis site at http://www.mymihomevalue.com/

consistently ranked as one of Southeastern Michigan's associate brokers of Seniors Real Estate Help, Equity Sales and Short Sales. Rick Giese has over 27 years of Real Estate experience and is one of the areas Rick has a strong focus on assisting homeowners in need, Rick Giese offers a straightforward no nonsense consultation designed to give you all the information and facts to enable you to make the best decision for you and your family. As every situation is different, Rick offers his insight and knowledge of the real estate transaction process and all the options available to you to get the most money the market will pay or to help you avoid foreclosure. Call Rick Giese today at toll free 1-800-274-5656 or your free consultation of your situation and sleep better tonight.

For more information, contact Rick Giese at 586-242-3100 or email rick@rickgiese.com

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Rick Giese RE/MAX Advisors
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