• Mally Lewis & Lamb Chop, the adored puppet made famous by Mally's mother, the legendary Shari Lewis.
• Demonstrations featuring Police K-9 teams.
• A brand new "BOW WOW LUAU," acrobatic dog show.
• More food booths for shorter food lines and even more variety.
• Friday Sept. 3, is Senior Citizen day featuring reduced admission and special Senior promotions.
• "Senior shuttle" carts and a wheelchair friendly van to help seniors and those with special needs.

Let Summit Sotheby’s explain the project marketing resources available through the worldwide Sotheby’s International Realty network. View details >>

PRICING YOUR HOME TO SELL

By Hilma Bellessa, Summit Sotheby’s International Realty

One of the most important aspects of selling a home is to price it correctly from the beginning.  The effects of pricing too high are many:

1. Recent studies by the National Association of Realtors show that in order to have buyers make offers on your home you must be within 3% of its true market value.  Simply put, if the house is overpriced, you won’t get offers and therefore it won’t sell.  The first three weeks on the market produce the most showings since buyers in the market are anxious to see new inventory. 

2. A study of the local market release by Summit Sotheby’s International Realty showed that homes sold in the first 3 months obtain an average of 96% of their list price but homes that sold after the third month on the market only obtained about 90% of their original listing price. 

3. Since we are in a historically down real estate market the strategy of pricing high to test the market is not to the seller’s benefit.  It is natural in this market for sellers to assume buyers will make “low ball” offers so an artificial price cushion is necessary.  Over the last two years the value of real estate in Wasatch and Summit Counties has declined an average of about 2% a month.  So, if sellers want to avoid further property value declines it is important to sell your home quickly by pricing it correctly.  More days on the market brings a further loss in equity.  A home that has been on the market an extended period of time becomes stigmatized and gives buyers the sense that the seller is desperate or that something is wrong with the property.

4. In a rising market, correct pricing is less critical.  The point was already made that price sensitivity is currently 3% when in 2006 it was 14%.  So, a home that was overpriced in 2006 by say 14% would still have had an offer made and a contract accepted.  Conversely, in a declining market a property that is 14% over priced for 6 months will end up 26% overpriced if the market declines at the current rate of 2% per month.  With record high inventory to choose from the buyer will pass over the higher priced homes.  Buyers want the best home available at the most competitive price.  At any given time, only 4% of properties for sale have an accepted offer.

5. Using an appraisal even is not always a true indicator of value.  There are many different types of appraisals.  Don’t confuse a purchase/refinance appraisal ordered by lenders to confirm the purchase price of the home for what the home would sell for.  Sometimes, buyers make offers on overprices homes and only to find the lender won’t complete a mortgage due to an appraisal that won’t confirm the value.  It has become standard for appraisers to use “comps” no older than 90 days and to adjust “comps” outside 90 days by the 2% per month decline in the market.  It is wise, therefore, for sellers to do the same.  Obtaining a CMA (comparable market analysis) from a Realtor at Summit Sotheby’s International Realty can be obtained at no cost to the seller.  The CMA has advantages over an appraisal because it factors in market conditions such as comparable sales, time on market, active listings and homes that failed to sell in their listing period. 

Factors that affect the price of a home;

1. Location:  If your house is in a desirable area you will be able to get a higher price.
2. Condition:  A house that is well maintained, shows well, has current colors (no avocado green shag), smells good and is clean sells for more than a home in bad condition.
3. Desirable amenities: spacious kitchens, master suites, granite, great rooms, fireplaces and nice yards are a plus.
4. Accessibility: Easy to show.  Vacant homes often receive a higher percentage of showings due to the ease of accessibility.
5. About 87% of all buyers start their search on the Internet so the quality and number of photos drive buyers to your listing.  The distribution of your photos to key real estate web sites is vital.

A New Way of Thinking:

It is difficult for sellers, especially those who bought at the top of the market and who have equity loans, to see the rapid decline in their investment.  Pricing to sell gets you out of the monthly mortgage payment and equity decline which is like investing monthly in a declining stock.  If cash is realized from a sale, even if it is less than desired, there is opportunity to invest it in something that is appreciating which will gain back your investment. It could also simply be placed in the bank where it is not declining further.

There is an old adage in real estate that you make money when you buy in real estate, not when you sell.  If a seller takes a loss on a home but is going to buy again in this market the two balance each other out.

Remember, a buyer does not have the happy memories and emotional investment you might have in your home.  Be objective.  Stay ahead of the market rather than chasing behind it.  And, above all, remember that the buyers determine the value of the home by what they are willing to pay for it.

THE NEW YORK TIMES GREAT HOMES AND DESTINATIONS
WHAT YOU GET FOR $175,000

WHERE: In Heber City, Utah

WHAT: A three-bedroom one-bath cabin

HOW MUCH: $185,000

SIZE: 1,120 square feet

PER SQUARE FOOT: $165.18

SETTING: This A-frame is in a gated residential community of about 750 houses called Timber Lakes, about 20 minutes east of downtown Heber City. Ski resorts are nearby, including Sundance, Deer Valley, Brighton and Snowbird. There is also fishing in the Provo River, a governmentally designated Blue Ribbon fishing area, and hiking, biking and snowmobiling. For shopping and dining, residents drive to Heber Valley and central Heber City.

INSIDE: The house, built in 1979, was remodeled four years ago by its current owners. On the lower level is a living room and kitchenette, with western exposure overlooking Heber Valley and five different ski areas, including Deer Valley and Sundance, the listing agent said. One of the house’s bedrooms is downstairs; the other two are upstairs. The master, with valley views, is above the living room and has exposed beams.

OUTDOOR SPACE: The house is set on a wooded half-acre. The gated community has private snowmobile access and a cross-country ski easement into a national forest.

TAXES: $736 a year; $51 a month in homeowner’s association dues.

CONTACT: Mike Durr, Summit Sotheby’s International Realty (435) 640-1416; mikedurrrealestate.com