Selling Your Home During a Divorce in Arizona
When valuing a residence for sale, especially during a divorce, it is important to be realistic. Many homeowners are tied to a number that is based on emotion or their financial investment. During a divorce in Arizona, the equity is often relied upon as a bank account in the property settlement, and to start your new life. S.M.A.R.T. pricing is a means to determine the best value and avoid the peril of trying to sell an overpriced home.
Valuing a home is both a science and an art. The science is the statistical analysis of recently sold comparable properties (comps), and the current market conditions. The art is knowing the subtle nuances of the property and finessing the information into a realistic asking price that will attract buyers. Here are five key elements that should be considered when valuing a home:
S = SALES price of comparable properties recently sold;
M = MARKET conditions;
A = ADJUSTMENTS based on comparable properties;
R = REALISTIC price based on all of the above;
T = TIMEFRAME to sell SALES: The recent selling price of comparable homes (comps) in your area, along with other data, will create the basis for your property valuation;
SALES: Look at homes that have recently sold say within the past 3 to 6 months. The active homes, as long as they are priced realistically, are also import to consider.
MARKET: It is important to narrow the focus to your specific area. Calculate the absorption rate (ask your Realtor to assist with this). These facts and figures will help you calculate the supply, demand, and appropriate price for your home. Also, staying on top of market trends is important.
ADJUSTMENTS: Adjustments are the most challenging calculation. They require knowledge of the condition of the comparable properties. You will need to consider the condition of your property compared to the comps. Things to consider are lot location, updates (or lack of updates), amenities, and maintenance, among other things.
REALISTIC: The realistic price will be based on all of the above. The goal is to find that magical number where a willing buyer comes forth with an offer. If the price is too high, buyers will walk past the property. It is important to manage your expectations.
TIMEFRAME: How quickly do you want or need to sell? Ideally, a home should sell within the first 90 days. A luxury home, generally priced over $1 million, if priced appropriately, should sell within 6 months to a year*. It’s important to look at your personal circumstances. What are the carrying costs? Can you afford to remain in the house? What is the status of your divorce and agreements?
You can help by understanding how to S.M.A.R.T.ly price your home. Your Realtor will prepare a CMA (Comparative Market Analysis). A lot of statistics are included in this report. Discuss and truly understand the report. Be cautious about overpricing your home, and “banking” on the phantom equity. Over-priced homes will linger on the market and become stale.
Then you have wasted precious time and lost credibility in the market, and will more than likely have to reduce the price to garner a sale. It is important to know that buyers are S.M.A.R.T., too! Thanks to the Internet, over 90% of buyers have researched your home online. They have access to a great deal of information about your home and others. Often, they come in with a preconceived notion of the value of your home.
That being said, there are inherent inaccuracies in Internet pricing. A knowledgeable realtor can help decipher a realistic price. Any home is ultimately valued at what a buyer is willing to pay, the seller is willing to accept, and what the bank is willing to loan. The S.M.A.R.T. price is where all three merge.
Realtors don’t have crystal balls. We don’t know what the market will bring tomorrow. It is a calculated, but intelligent guess. If everyone is realistic, and S.M.A.R.T., the best valuation will occur, and your home will sell within the timeframe most beneficial in your situation.
For a free S.M.A.R.T. Valuation of your home, please call CHRIS CARTER KENT Your Transition Concierge Realty Executives 480-388-0662 ChrisCarterKent@gmail.com or at ChrisCarterKent.com.
*Multi-million dollar homes may take longer to sell and are deserving of a customized CMA and further conversation.