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Is Your Price On Target? by Steve Westmark

by Steve Westmark

Hi, this is Steve Westmark of Counselor Realty.  Thanks so much for watching my video blog this week.  Over at an archery range today to talk a little bit about my bullseye of pricing.  Gained this well over a decade ago from Nancy Jenkins, a top agent over in Vermont.  And the uniqueness of this thing is that it’s proven itself true over the years as a true illustration of what happens with good pricing.  Good archers know how to find the target and hit the target in the middle so that they have things happen.

In order to get your house sold, this bullseye will show you how to get your home sold.  As you’ll notice in the bullseye, if you’re not getting many showings on your property, you’re probably 12% to 15% high on price, maybe even higher.  In the next part of the bullseye, the next area in, if you’re getting some showing but hardly any activity at all, you’re probably 12% to 6%.  And then if you’re getting showings and a lot of activity showings but no offers, then you’re about 4% to 6% off the market.

The true bullseye of pricing is when you are within 2% to 3% of where the sale prices are.  And this is where we talk with you as a seller and help you try to find out where is that bullseye, where is the marketplace going to work so that you can win and get your home sold.  Thanks for watching this video.  Make it a great day.  Bye.

 

 

Steve's Top 10 Home Ownership Rules!

by Steve Westmark

 

STEVE:  Hi.  This is Steve Westmark, Counselor Realty. Thanks so much for watching my video blog this week. David Letterman has the 10 reasons for doing different things. This happens to be this week, not so much funny stuff but information on 10 Rules in Home Ownership As You Own a Property. The first rule that you should look at is: Never overpay when youre buying your home.

It should be logical, but in the end, there’s a guy that wrote Swim with the Sharks, Harvey Mackay, who says that you make your value when you purchase your home, not when you sell because all you can do is sell for market value.  Second, is maintain your home’s condition. That means putting paint on it, following up on your shrubs, just taking good maintenance of the property. Third is minimize your assessed value to lower your taxes.

And in fact, I did a video blog on that that you can look on my site on how to control your assessed market value on your property. Fourth, make an extra additional principal payment in your payment of your PITI on a monthly basis. This will help accelerate and pay off your mortgage. In fact, there’s a very well-known speaker nationally, Dave Ramsey, who recommends getting a 15-year mortgage and learning to pay that mortgage off on your house sooner.

Continue to validate the value of the improvements of your contents in your property. That has to do with your insurance. If something tragic were to happen on your house, the last thing you want to do is have an underinsured property. Stay current on your surrounding property values. Receive and update, and in fact, that’s a thing that I can do for you. If you’d like to have an automatic update of what’s going on in your neighborhood, that’s a program that I can put together for you to let you know what’s going on in your neighborhood and what’s selling.

Make a mortgage interest payments deductible. And that’s pretty obvious, and gratefully in the United States we have a mortgage interest deduction. But you want to make sure that you’re making those interest deduction payments on your taxes that makes the savings for you. Do capital improvements that improve value. I had a gentleman calling me this morning and asking me, “What should I be doing on my kitchen?” and we talked about the proper capital improvements and what will give the greatest return on investment to him as he improves his property.

Number 1, don’t overimprove your property in your neighborhood. I have a guideline that I learned from an appraiser. If your average value in your neighborhood is around 300,000, he recommends as an appraiser not putting in over 30% or 90,000 into the average area of your neighborhood. So that would mean if you’re going to put 70 to 80 to 90,000 into your $300,000 property, that is a safe capital improvement, but if you go and put $200,000 in, you’re overimproving the property.

And last but not least, keep capital improvement records and other maintenance. This all has to do with your basis in your property. When you finally end up selling your property in the end and want to have a tax-free situation, the federal government allows as couples $500,000 in tax-free capital gains or $250,000 for a single. And as you keep your records and show your basis increases, it shows that you will be able to protect more of your capital gains that you have in your single-family home.

Hopefully these are great insights for you in how to maximize your property values. Thanks. Make it a great day. Bye.

 

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Photo of The Steve Westmark Team Real Estate
The Steve Westmark Team
RE/MAX Advantage Plus
14451 Highway 7 Suite 100
Minnetonka MN 55345
612-978-7777
877-SOLDING
Fax: 952-241-1600