Selling the Matrimonial Home
Based on my experience when it comes to selling a matrimonial home for a couple that is or has separated, the husband usually want’s to sell for more money and is willing to wait to get their price.
But not all the time!!!!
Last month I sold a matrimonial home for a separated couple in which their relationship was and still is very erroneous. I have dealt with many separated couples, but this particular situation stands out from the norm. Why, because he wanted a fast sell for less money and she wanted to sell for a lot more.
I was brought in by the wife around February 2015. In February my advice to both parties was the following: That we should list the house in late March or early April for $720,000. The husband had an agent he wanted to use and this agent wanted to list the home for $ 650,000.
I had to Convince the Husband to List the Matrimonial Home for More Money???
The husband who was so delighted to tell me that his agent was highly recommended to him, suggested to list the home for $ 650,000 and that he’ll sell it for around $ 670,000. I was told that the price I was suggesting was too high. He pointed out that another house listed for $ 725,000 didn’t sell and was still on the market after a month. Then he said, why should someone pay $720,000 for his house, when someone won’t pay $725,000 for the other house? So, I had to spend an hour explaining to him, showing him and convincing him why. Luckily for him I did.
I would have loved to have listed his house for $ 650,000. It would have been a quick and easy sell and for the difference of the money I would make, it wouldn’t have made a difference to me. But, it would have been the wrong thing to do.
You see, many agents out there, figure out the current market value based on comparable homes that have sold, then list the home for a little above. I on the other hand, use ‘my pricing strategy’.
My Pricing Strategy
- Determine and analyze what current similar houses have sold for: $ 650,000 to $ 670,000 and the month was February. In this neighbourhood, it seemed that the sellers were trying to get multiple offers and create bidding war. Which would in turn, their homes would sell for substantially more money. After analyzing the ones that did sell in this situation, it didn’t seem that their achieved their goal and their homes didn’t sell for what they wanted.
- Analyse the competition – what’s currently for sale, similar and non similar: Similar were ‘listed’ for about $ 690,000 to $ 705,000 (early February). Bigger homes were selling for around $725,000.
- Figure out the month when we would be able to list the home: After meeting with both the wife and husband, I was able to conclude that late March, early April would be the earliest. This is important to know because the market in April is different than in February. Since we were going into typically the best months to sell a home, then price should be based on that.
- Determine the type of market we are in: Are we in a sellers market, a buyers market or a balanced market. We are still in a sellers market. The inventory was still very low, interest rates were still low and the affordability factory was still there. It was a no brainer.
My conclusion and suggestion to my clients was to price their matrimonial home and list it for $ 720,000 and do not hold off on offers trying to get a bidding war. Price it a higher and see where it goes.
I sold the matrimonial home!! After a couple of weeks, we received an offer of $ 695,000, I brought the price up to $ 705,000, which my clients wanted to take because they wanted it over with. I gave them my opinion that I feel I can get them even more money, but it’s not my house, and since my clients were more than happy, then so was I.
Highest Price to Date
Well, this matrimonial home sold for more money than any others on the street. My client told her father, that she wishes I could represent her in court for her divorce. Maybe in my next life.