Calculating your list price is the hardest part of the selling process. There are many factors affecting price that need to be considered. Some of the strongest factors in determining a list price include:
Market Conditions: What is the market like in your area? Is it a buyer’s or seller’s market? What is the average list-to-sale price? These are all questions that need to be answered before you decide on a price.
Location: Is your home in a highly desirable area? Or do you live right next to a noisy highway? Location is one of the biggest factors in determining the list price. If you live in a very highly sought after location, you can probably start a little higher on your price.
Condition of Your Home: Condition is the one pricing factor you have the most control over. If your home is clean and in great shape, you will get more money for it. Plus it will sell much more quickly than other homes in your price range. The quicker your home sells, the closer you will get to your full asking price.
Amenities: What kind of amenities and upgrades do you have in your home? Granite countertops, hardwood floors, and swimming pools, can be very desirable features that will make your home sell faster, and for more money. In some areas, however, these features are considered to be “standard”, so not having them can have the opposite effect on your price. Added amenities can also allow you to ask more for your home, and will be taken into consideration by an agent when they are helping you to determine the price of your home.
Lot Size: How big is your lot? Lot size is a huge factor in determining the price of your home. If you have two identical houses, with one being on a one-acre lot, and the other situated on a three-acre lot, they will sell for very different prices. Remember to check the lot size of comparable houses that have sold in your area.
How quickly do you need to sell: Taking all of this into consideration, determining a fair target list price all comes down to how quickly you need to sell. If you need to move soon, you need to be very aggressive. Your home will need to be the best home at the best price in your price range.
Because of the changing nature of real estate, an agent is vital in helping you determine your asking price. If your price is too high, your home won’t sell, or may take a long time to sell. If it’s too low, you’ll lose out on valuable earned equity.
When determining a fair asking price, a realtor offers the advantage of an outsider’s point of view. Understanding that such factors as original purchase price, over-improvements, owner’s need for money, and owner’s personal attachment to the property shouldn’t be factored into the price, an agent can give you their honest opinion of what price a buyer would be willing to go if purchasing your property.
With all the resources to evaluate comparable home sales, a realtor can help you determine a target price that will catch attention, but still leave room for negotiation.
Article provided by Jolenta Averill a Madison real estate agent. If you’re interested in learning more about Jolenta, you can research her by visiting her Madison real estate blog or searching homes for sale in Madison on her website.
More
La Quinta Home Sales interest is increasing with the increasing attendance at the International Film Festival. The Film Festival is a yearly event, that is growing every single year. More celebrities of a very high caliber are making the decision to participate and Palm Springs is once again, on the map with regards to Hollywood! 2012 will see the likes of George Clooney, and Brad Pitt walking it’s red carpets. Entertainment TV will be covering their every move and for our Valley, this all points to more interest in Buying a Home here!
La Quinta’s homes for sale have always been popular with Celebrities. The La Quinta Resort & Club is a very popular place to stay during both the Film Festival and also the Coachella Music Festival. Rooms are booked way in advance, and after one season in beautiful, warm, La Quinta, people consider purchasing a second home here. Palm Springs Homes are also very popular. People that want to be right in Palm Springs proper with all it’s History, charm and older estate homes, find Palm Springs perfect for that winter home.
The Film Festival draws a huge crowd and we “desert rats” welcome them all with open arms! Come on out and see what the excitment is all about!
More
La Quinta Real Estate, 2012..a good year?? A good year..that is going to be very different for each person asking the question. La Quinta Real Estate in general has withstood the decline in property prices, and in many areas and specific developments is actually seeing a slight increase in the price/sf! What??
1. Entry Level Homes: 2012 will see a continuance of high volumne sales in this market. Entry Level in La Quinta is approximately $200,000 and under. Homes in this price point moved heavily all through 2011 and should continue the trend through 2012. With a great school district, solid City management and reserves, proximity to upscale Hotels, Golf Courses, Resort amenities and Old Town La Quinta, there isn’t much not to like. Just add in the views, and you can see why this market is sizzling. Investors, Flippers, first time home buyers and families that have been waiting to purchase when prices dropped will continue to jump into this market.
2. Gated Communities: Gated Communities in La Quinta are very popular. La Quinta is, for many Residents, a resort destination. Canadians, Asians, Europeans, Northern Californians and Beach Owners, prefer to purchase their second homes, and vacation homes in gated communities, which do offer more security for the months the Residents are not in town. Prices in the mid-tier pertain to these communities at about $350,000 – $550,000. There are some less and many more expensive. However, the mid-tier price range of homes will most like move laterally..not going up or down and should continue to sell fairly well.
3. Golf Communities: In the La Quinta and Palm Springs Valley, there are approx. 120 Golf Courses! That means, ALOT of inventory. I believe we will continue to see Private Golf Clubs, changing their pricing structures to encourage part timers and beginning golfers. PGA West has already done this by adding a non-refundable Premier Membership opportunity at $40,000, and The Citrus offers the same at $30,000. This only came into being in 2011, but I believe there will be MANY private Golf Clubs trying to figure out how to entice more golfers to join the Clubs, in a more reasonable way. Home on Golf Courses are selling very well and should continue to do so. Average prices are now at approx. 50% less than they were at the housing peak in 2006.
4. Luxury Properties in La Quinta: I have seen a large increse in the interest and also the Sales numbers in Luxury residences across the Valley. These magnificent homes, in Golf and non-golf communities are selling. I think the Sellers will continue to adjust their prices to attract Buyers and the Luxury home market (1 mil – 3 mil) and the Luxury Market High End, (3.5 mil to 40 mil) will see sales increases in 2012.
I am not a psychic. I am a Realtor that is interacting with Clients on a daily basis and reading every real estate prediction I can find. None of us KNOW what is going to happen. These are my feelings for 2012 La Quinta and Palm Springs Valley real estate trends for 2012.
More
Not More Foreclosures!!
Delinquent Mortgage numbers are on the rise here in California. This should not surprise anyone based on the Lenders giving a Christmas Holiday to their Eviction departments. Remember also that the Robo-signing scandal slowed the Foreclosure pipeline down to a crawl. In La Quinta, we could actually use some more Foreclsures! What I mean by that is there are many Buyers waiting in the wing for distressed properties..whether they be Foreclosures or Short Sales, so bring them on! I hate that people are losing their homes. I like that Buyers are snapping them up in the Palm Sprins Valley. We cannot get to the bottom of this Foreclosure Trend if we do not have Buyers ready to buy.
This is from the California Association of Realtors…
“The number of delinquent mortgages in November rose to 8.15 percent from 7.93 percent in October, according to a report from Lender Processing Services.
That delinquency rate as a percentage of the LPS database of 40 million mortgages declined nearly 10 percent from a year earlier. About 4.14 million homes were 30 or more days past due in November, with about 1.81 million properties more than 90 days past due.
LPS considers a mortgage delinquent when it’s at least 30 days in arrears but not in foreclosure. The company recorded 6.26 million homes either delinquent or in foreclosure last month.”
Keep in mind that this is the entire State of California. Buyers must stay focused on particular areas they are interested in. Better yet..stay focused on a development within that area. Look at the SOLD comps, the PENDING, and also the EXPIRED comps as those will tell you the true story of that development. These reports are very general..very similar to the Median Sales Price, which is virtually worthless.
There is always some truth to these Statistics however, so I’m sure we’ll have more Foreclosures in La Quinta and the Palm Springs Valley throughout 2012.
More
La Quinta view on Eisenhower Dr.
La Quinta Real Estate is moving..and fast. I’ve been listing, and closing Short Sales for almost 5 years now and the beautiful thing about the not so beautiful world of the Short Sale is that I keep my finger on the pulse of the market. Where’s the “bottom?” The bottom is where the Buyers set it..nothing mysterious about that. It’s still very much a Buyers’ market in La Quinta as it is in the majority of California. Palm Spring and Palm Desert are also seeing a tremendous amount of closed sales. What’s going on?
Smart money is being invested in La Quinta real estate again. Where else to put it if you want positive cash flow, want to have a tangible asset, or simply have the wherewithal to finally buy that resort home in a warm winter location for retirement or as a vacation home? Canadians are investing in our Valley heavily..even so much so as to put together investment groups to purchase golf course projects, commercial sites as well as residential short sales, foreclosures or equity homes that make sense in the price/sf comparison.
La Quinta entry level homes can be purchased for $100,000 – $150,000. Fixers are less and prime locations are more, BUT these homes are Killer! I’m watching one now in La Quinta that will come on as a Foreclosure within the next week or so for one of my European investors. It will be put into a Rental program for the next 3 years or so, then sold. These are lovely homes that cannot be replaced for what they are being sold for! Newer (2002-2007) built homes, or remodeled older homes with views, location, good school districts and you just can’t beat La Quinta for it’s beauty.
La Quinta real estate has always been attractive…now it’s even more so.
More
Captivate your buyers with your entrance
When a Buyer first sets sight on your property, they need to REMEMBER it! How do you do that? Here’s the trick..and it’s a simple one.
Put on your Buyers shoes, walk out your front door, close the door, walk to the sidewalk, stop and turn around. There, that’s it. Answer this question honestly, “What do I see?” Really see. Look at your front entry, your front door..everything. Look at it with your Buyer’s glasses…not as you see it, but as a Buyer will see it. Be honest.
Are there cracks in the walkway? Is the mailbox tilted or are numbers missing? How about your front entry or porch? What about the front door? Is it freshly painted, doorknob fresh and shiny, does it open easily? A Buyer will SEE this. Continue into the house with your Buyers glasses firmly in place. Now add the smell..is it fresh? Does it smell stale, like last night’s dinner, cats, dogs..what? Be honest with yourself!
Don’t convince yourself that it’s no big deal..it IS a big deal. Try to get into your Buyers’ head..see it through their eyes, smell it through their nose and you just might get into their check book too!
More
We aren’t all fortunate enough to benefit financially from giving something away, but there may be times when it’s worth exploring the tax advantages of a “bargain sale.” The charitable contribution is one of the few remaining federal tax deductions that can be worked into a real estate transaction to create a win-win situation.
And the essential elements to qualify a bargain sale as a charitable contribution are:
1) A property owner willing to sell his or her property for less than fair market value.
2) A recipient that meets certain federal tax code criteria, for instance a government entity or a qualified charitable organization.
Let’s say your house sits on a 2-acre lot adjacent to a public park. Your realtor says the total value is $400,000, but the city has expressed interest in obtaining an acre of the land to expand its park. You ask your realtor how the value would be affected if you were to split the land, and the answer is that you could sell the house and one acre for $300,000, leaving a $100,000 value on the acre the city is interested in.
After determining with your tax accountant that the sale would qualify as a bargain sale for income tax purposes, you agree to sell the acre to the city for $50,000 – half of its actual value. The $50,000 difference between the value ($100,000) and the actual sale price ($50,000) is then potentially deductible on your Schedule A as a charitable contribution.
Note the word “potentially.” There are some things to keep in mind:
- The IRS won’t just accept your realtor’s opinion of value as the starting point for the equation. They will require a written appraisal conducted by an IRS-approved appraiser, the cost of which will have to be paid by either you or the buyer.
- While the tax benefit of the bargain sale might offset any capital gains consequences resulting from the sale of the house and remaining land, there is an annual cap on how much you can deduct as a charitable contribution. If you go over the cap, however, there are carryover provisions that might allow you to spread the deduction over several years.
- When you’re dealing with a government body or a charitable organization, don’t expect things to move fast. They may need time to raise the money or allocate the funds.
- In most cases, a bargain sale will result in lower net proceeds to the seller than an arm’s length sale at fair market value. This gives the seller leverage to negotiate non-monetary provisions into the contract, and it’s your opportunity to request conditions that might otherwise benefit you, or at least increase the value or marketability of the adjacent house and lot.
For instance, you could ask for a deed restriction preventing that particular acre of the park from ever being used as a baseball diamond or football stadium – or any type of structure, for that matter. You could ask for a permanent plaque or monument memorializing your gift to the city. Or you could ask for a fence to be built on the property line. As with all negotiations, it doesn’t hurt to ask, but you can’t force them to say yes.
A bargain sale is not a journey you want to embark on lightly. To understand the full tax implications of the maneuver, be sure to talk first with a qualified tax accountant.
Guest Blog Provided By Jolenta Averill: For more information about Jolenta, please visit her Madison real estate website where you can see all Madison homes for sale. You can also learn more about Madison Wisconsin by reading Jolenta’s Madison real estate blog.
More
Houses or Horses..shiny is good!
Comparing selling houses and horses..nuts, right? Not entirely. First impressions are first impressions. Therefore, appearance DOES make a difference!
Selling your house? Pay attention to the following..
1. Curb appeal: Make it pop! Clean, freshly painted front door. Flowers and color. Treat cracks in walkway and driveway. New mailbox. New door mats..use your imagination here.
2. Smells: HUGE. Clean and fresh means you care..
3. Appliances: Consider replacing them..stainless sells! Again..it translates for Buyers to “you care, and it’s maintained.”
4. Paint: Cheapest way to change the appearance and freshen up your home.
5. Stage it! Consider this as Buyers can imagine their own things in the home much easier this way.
Selling your horse? Let’s compare points…
1. Coat appeal: Make it shiny! Translation..a healthy horse.
2. Smells: HUGE. Be sure your horses’ teeth are taken care of, no illness or infections in mouth or feet or body.
3. Tack: As with appliances, clean, shiny tack (bridles & saddles) means you care and are invested in your property.
4. Paint??? No, but do be sure the overall picture is one of health, happiness, calm demeaner, shiny coat, clean equipment.
5. Stage it! Absolutely! New shoes, freshly clipped manes and tails, shiny tack..make your pony pop!
See..you can see the commonalities now, right??? Sales are sales..
More
This custom home is a stunner! Every detail is meticulous, from the custom carved, wooden, courtyard entry gates, to the custom interior doors and fixtures, custom paint, custom and NEW carpets in bedrooms and media room. Best of all…TURNKEY furnished! Bring your golf clubs, your polo mallets and party clothes and stay! All this for $1,595,000….
Infinity pool to lake to mountains..spectacular!
This gorgeous home, built in 2003 sits on a huge (approx. 23,000 sf) corner lot on one of the premier streets at PGA West..Pebble Beach on the Stadium course. Mesmerizing lake and mountain views from the pocket doors which allow easy interior to exterior flow..what an entertainment home. Enter the gated courtyard with it’s fountain, lush landscape and detached Casita. The main home has approx. 4600 sf with 3 bedrooms/3.5 baths and a media room. The garage is so large, (1400 sf for 4-cars) that it has it’s own dedicated driveway..plenty of off-street parking for your guests, family or party goers..very unusual in a golf course home.
The HOA’s when you own on the lake at PGA West Stadium are $225/month..much lower than on the fairway side of the street and beste of all?? No golf balls or mowers early in the morning to deal with!
Take a look..this one will go fast!
More
La Quinta Date Farm
I’m feeling pretty good because the Palm Springs Valley in general and La Quinta in particular has been rebounding in both sales numbers, a dip in foreclosure home numbers and an actual increase in price/sf in small pockets of developments..yeah!
I try to keep a general feel for the Canadian markets…mostly Vancouver and Calgary real estate because I have so many Canadian friends and clients. This morning this article came online from the Calgary front page with regards to where the Real Estate market is heading in Calgary, Canada for 2012.
Basically saying they are predicting entry level homes to continue to move..entry level in Calgary is approx. $350,000 – $450,000..wow! Here our entry level is about $150,000-$200,000. Anyway, they are also predicting Value increases for homes at approx. 3% in 2012. Isn’t that fantastic? Luxury Homes in Calgary, as with Luxury homes here in La Quinta and the desert area, are moving rapidly. I have seen a huge uptick in sales in the over 1 million price range the last quarter of 2011 and it will continue into 2012.
Calgary has a stable economy, loan rates are low, and builders are pulling permits for single and multiple family projects. We are all intermingled these days and any City that is on the move to real estate recovery is going to affect our own local sales. Go Calgary!!
More
