Price versus Value – What’s The Difference?

Posted by Ambergate Realty Advisors on Friday, November 6th, 2015 at 4:44pm.

It’s all about price! It’s all about price!

We find that too many Realtors® in the metro Edmonton market and therefore too many consumers fixate on pricing when attempting to sell a house or condo. This is far too simplistic.

At Ambergate Advisors we have identified 8 key components that make up your ‘value proposition’. And if you correctly focus on these components, you will positively affect the price you ultimately receive. You will get more money! Some of these components that we describe as ‘goodies’ are discussed in the next few paragraphs. To find out what all 8 components are please call us.

What is the difference between price and value?

Think of it this way.

  • Price is the amount of money a buyer is prepared to give up, to acquire ownership of your house or condo.
  • Value is the set of ‘goodies’ that you give them in return.

So let’s put your asking price aside and examine each ‘goodie’ one by one: 

Preparation – if you are looking for a fast sale and top dollar, ie retail value for your home, you must prepare. In most cases offering the home ‘as is‘ just won’t cut it. It’s almost always a good idea to de-clutter and renew worn out parts of the house BEFORE you go to market. For an extensive check list of items to review, please contact our office.

Terms – What are you prepared to leave behind? Your competitors will almost certainly be leaving their window coverings and appliances. So should you. Buyers of used homes and condos will expect these items to be included. If you want to take them with you, might be perceived as cheap. Buyers will expect to pay less too. 

Timing – Most motivated buyers are more stressed than you will be. They are between homes and the sooner they can free themselves of anxiety, the more they like it. If you can offer immediate or quick possession, you are more likely to receive full value and therefore higher offers compared those sellers who are offering some vague ’90 days negotiable’ possession date. In fact, these halfhearted sellers may actually help you sell first. Please don’t do what many For Sale by Owners do. They start marketing their homes perhaps a year before they want to move out. The result? Often no sale and a stigmatized asset. See below for details. 

Motivation – Do you really want to sell? Selling a home or condo at any time is going to be stressful. If you aren’t ready, or if you wish to ‘test the market’ my advice would be ‘don’t even try’. Every time you use the MLS® System you create history. If you are not successful in selling, the history starts to pile up and work against you. Six months or more of history and buyers will start to become wary of your home. They will start to ask ‘what’s wrong with this home? You will have stigmatized what is perhaps your biggest asset. The chances of you getting a high price are slim.

 Will You Encourage All Realtors® to Show Your Home? – Realtors® are becoming less important in the home search process, due to the plethora of internet and social media based information sources available to home buyers these days. In almost all cases, the consumer identifywhat homes and condos they wish to see. The Realtor® simply sets up the appointments. However, it must be remembered that in most cases, the buyer trusts these people. We recommend that you offer a reasonable ‘finder’s fee’ to encourage the active participation of all Realtors®. A flat fee is best these days. Please call us for details.

Your Partner – Think that it makes no difference as to how you access the MLS® System and that any Realtor® will do? Think again. Almost HALF of listings put onto the Edmonton MLS® will not sell. Moreover, we have found that the quality of the ‘brand’ you use will also make a difference.

Choose a discounter brokerage or perhaps a ‘for sale by owner’ company and many buyers will think of you as a ‘home wholesaler’. Buyers may have low expectations for the preparation or quality of your home. They will often expect an appropriate discount for choosing your home over one that is being retailed.

Conversely when you go with a full service or traditional Realtor®, buyers will expect a well prepared home, a streamlined experience and to pay top dollar. The downside is that most of these Realtors® will want you to pay a big commission. Why not look for a brokerage that focuses on providing no only first class service and excellent results but also lower commissions, for example: Ambergate Advisors?

There is one other important factor and unfortunately you cannot control it: 

Competition – No matter how nice your home, it’s not unique. At any time of the year, buyers will be able to choose from hundreds of homes and condos that provide the same key amenities that yours does. Buyers will compare. That said, the less direct competition that you have, the higher the chances of you’re getting top dollar. This explains why for the last 2 years in the metro Edmonton market, home and condo values have peaked in November. This is when many sellers have retired from the market. The sellers remaining then get to get enjoy more focused exposure from buyers that want to get settled before Christmas. In exchange, they will pay you top dollar. 

Want more information about our discount and flat fee home selling programs? Please feel free to call our broker owner Stuart Neal at: 780-760-2014 or visit www.LowerRealtyFees.com

Lower Realty Fees & Outstanding Results, Superior Realty Services from only $1999

Note this blog was first published on www.LowerRealtyFees.com  in 2014. It was revised, updated and reposted on www.AmbergateHomes.com in November 2015.

2 Responses to "Price versus Value – What’s The Difference?"

6 Different Ways to Sell a House or Condo in a Down Market wrote: [...]simply help your competition sell first. For more information about price and value see this link, Price Versus Value - Whats The Difference? 
5. Will You Pick Competent Professionals To Help You? - Think any Realtor® will do? Please[...]

Posted on Wednesday, February 3rd, 2016 at 6:54pm.

10 Questions You MUST Ask Your Realtor® Before You List Your Home for Sale with Them wrote: [...]sellers, fixate on price. At Ambergate Advisors we have identified 8 Key Components to correctly position a house for selling success, of which price is only one component.
5. How many ‘phases’ does[...]

Posted on Friday, March 4th, 2016 at 3:29pm.

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