Brosnan Realty Group, Inc
Brosnan Realty Group, Inc | 617-787-2860 | kieran@BrosnanRealty.com


Posted by Brosnan Realty Group, Inc on 3/28/2021

Image by Andrey Popov from Shutterstock

The term "fair market value" is the price at which an interested but not desperate buyer is willing to buy and a motivated but not distressed seller is willing to sell on the open market in your location. The set value depends on recently sold similar-sized homes with like amenities, upgrades, and location. These are known as "comparables" or "comps" in real estate jargon.

Your best resource for learning the market value of your home is your trusted real estate professional. They have access to lists of homes like yours that sold on the open market in recent weeks and months. Of course, no one can know if your home will sell since other factors might be at work too. Changes in local industry and the job market might cause prices to move either down or up. Weather can factor in also.

What if prices drop?

Should you enter the market just as prices begin trending down, you might choose to set your price just below the fair market value. That way, you won’t be forced to lower your opening price if they keep trending downward. To stay competitive, increase the value, not the price. Professionals know ways to market your home’s exceptions such as recent upgrades, repairs, a new roof, walkability, proximity to social life and other seemingly intangible items that keep your home at the top of people’s list.

What if prices go up?

Neither you nor your agent can accurately anticipate the market. But if prices seem to be going up, set yours near the top of the “fair” values. Try not to overprice your home since doing so can have unintended consequences. Lenders and underwriters operate slightly behind the market adjustments, so when you set a too high price, your buyers may not qualify for financing.

Setting the price

Your agent can help you set the right price the first time. Trust their knowledge and expertise in the marketplace. If you’re not sure about the price, test the waters by asking your agent to keep your home as a pocket listing. That is, a listing they can tell agents and clients about that doesn’t appear on the multiple listing services (MLS). That way, you can see if your pricing strategy gains any traction.




Categories: home value  


Posted by Brosnan Realty Group, Inc on 3/1/2020

Photo by fran hogan on Unsplash

If you’re a homeowner considering selling your home as an investment property, timing is important. From a financial perspective, just as you probably bought strategically, you want to sell strategically too. The trick is knowing when the right time arrives. Here are four common metrics people use to determine when it's time to sell their property.

Amount of Equity in the House

A primary factor to look at is how much equity is in the home. Ideally, to sell a home as an investment, the seller can make a tidy sum. If mortgage payments are still owed, this may negate any potential profit made, but not necessarily. If you're looking to broaden your investment portfolio, be certain you can sell your house for enough money to pay off your debt with a sufficient amount left over to re-invest. If you don’t have enough equity to do this, you’re better holding off.

Market Conditions Are Good

Many owners who bought low and can sell high find this to be a strong motivator to put their property on the market. Since market conditions eventually shift to a buyer’s market, it’s a smart strategy to sell when the housing market favors the seller. Owners who have held their property for a long time or purchased as the housing bubble burst between 2007-2012, are likely going to make a better profit than investors who purchased when prices were at their peak.

Tax Code Advantages

Buyers are often motivated to sell if there are tax code advantages. For instance, the IRS currently offers a tax-deferred advantage to investors looking to sell one property to buy another. Under tax IRC Section 1031, sellers are required to find another property to purchase within 45 days and then buy it within 135 (180 days total).

By selling and making a similar real estate investment, investors can defer paying their federal and state capital gain taxes. It’s a good strategy to use if you want to leverage real estate and broaden your portfolio.

Taxes Are Going Up

If local taxes are going up, often buyers find this to be an incentive to sell. For instance, if a town severely limits commercial activity, the tax burden falls to homeowners. Over time, the tax bill may become too exorbitant. If you own enough equity in your property and the housing market is in your favor, high taxes might be your tipping point.





Posted by Brosnan Realty Group, Inc on 8/18/2019

There are many reasons to renovate your house. If you plan on selling, renovating your old house will increase the face value dramatically. Also, it makes you more comfortable while you get the satisfaction of living in a place of which you are proud.

Some cheap renovation ideas that will not hurt your wallet but translate into a more attractive sale are:

Add Energy Efficient Windows

More than any time in history, we have so much awareness about going green. It is a good idea as it not only saves the environment but also saves money. Hence, replacing old windows with new ones that are energy efficient will reward you with tremendous returns. Immediate benefits come as a drastic reduction in your electricity bills.

Make a Deck

One of the things home buyers look for is a deck. Adding a deck is a terrific idea because it provides a fantastic spot for relaxation. While adding a deck to your house is cost incentive, think of the improvement it will have on the face value of your property. Also, if you want to sell your home, it is a sweet selling spot to get better deals. 

Use Energy Efficient Insulation

Your heating and cooling system will be difficult to maintain if you use a door that allows a lot of hot and cold air to enter your house. Your entries, windows, switches, and attics are parts of the house that needs insulation. Replace old water heaters with new tanks that are energy efficient – they save energy and ultimately reduce your bills.

Ensure a Basic Maintenance Routine

A buyer will love to know the house is in good shape before investing in it. When you spend on basic maintenance, your home becomes pretty much appealing to prospective buyers. Basic maintenance routine doesn't have to burn a hole in your pocket. Hence, be sure to take care of leaky roofs, seal cracks, replace rotten woods and fix plumbing leaks. You also need to make certain that your house is clean.

Make Your Exterior Appealing

There are many renovation ideas you can do inside the house. You, however, have to bear in mind that it is the exterior of your home that will attract prospective buyers. With this in mind, you have to try to make your exterior as appealing as possible. Invest in good paint, make sure your roof complements the siding or brick, change your garage door, and anything else that will make your home look amazing at first sight.

House renovation is a great project that will yield tremendous returns with time. Be sure to invest in worthy projects that will make your house more appealing to buyers.







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