In Real Estate, there’s a difference between price and value. It’s an appraiser’s job to give an opinion of fair market value. “Price and Value are typically close in a balanced market where supply and demand are in equilibrium." says JC Silvey of Silvey Residential. “But right now, when inventory is so tight and buyers are out in droves, price and value can diverge significantly.”
JC is in the rare position of being both a Certified Appraiser and Realtor, so we asked him how buyers and sellers should behave in the current seller's market.
Buyer lesson one is, don’t get caught up in the chase.
“When twenty groups of buyers are interested in the same property there will inevitably be one or two that make an offer that is perfectly rational for them but is totally irrational for you. Everyone has different needs, wants and motivations. It's important not to attach someone else's motivations to yours. It's not always in your best interest to waive the appraisal and home inspection just to have the winning bid."
Buyer lesson two is, don’t let cosmetic issues dissuade you from a great property.
“Most buyers think emotionally. Many will walk right out the door if the house has the wrong paint colors or soiled carpet. I tell my buying clients, 'this is your opportunity!' We can fix carpet; we can fix paint; we can fix a lot of these cosmetic issues. And we won’t have to compete with crazy, escalating offers the way we would if the house showed impeccably well.” JC explains.
On the flip side, sellers should understand that preparing the home for the market has a huge return on their investment. "I've seen $3000 of updates result in a $30,000 return. People who don't understand the dynamics of the market will tell you not to paint or replace carpet -- that the new owners will replace it with what they want. That's just really bad advice. And we have plenty of data to prove it.
Seller lesson one: Marketing and Exposure still matter!
Anyone can put a sign in your yard, load pictures into the MLS, and sell your house. It that is all you are looking for, hire the cheapest person available. But the best agents in Loudoun tell stories about their listings, and design creative marketing campaigns that promote an emotional response from buyers. They have influence within the community to not only promote Loudoun County but to manage a contract negotiation.
Video, staging, digital ad campaigns -- these cost money, but the best Loudoun agents provide them, not because they need them to sell the house, but to build a level of exposure that sells the house for the maximum price.
Seller lesson two: Prepare your exit.
“Unless they want to pack up their family and move to Kansas, sellers have a buy-and-sell problem that has to be solved. They’re bombarded with advertisements from agents saying ‘now's the time to sell.’ We all know that. But selling is just half of the equation. Many of our clients love Loudoun and have no desire to move elsewhere. They just might have a growing family and need a bigger house, or he kids have moved out and they want to downsize. Managing two transactions here in Loudoun County is where we can really help. We help busy families upsize or downsize into the home that fits their lifestyle."
Ready to have the conversation? Call JC Silvey, Realtor & Certified Appraiser, M: 703-577-1946 or check out https://silveyresidential.com/, and notice JC’s expert use of video in marketing.