Getting The Best Deal For Your Luxury Home In Smith Mountain Lake
Smith Mountain Lake is a breathtakingly beautiful place to live. Yet, inevitably there are times when it becomes necessary to sell your luxury home in Smith Mountain Lake. Hopefully, it’s just so that you can move into another property in the area. However, for some it means relocating to another part of the country, or even going abroad.
Either way, if you find yourself looking to sell your luxury home in Smith Mountain Lake, you’ll want to ensure that you get the best possible deal. Here, we’ll take you through the considerations you need to keep in mind so that you get at the very least a fair if not good price for your home, as well as helping your home sell in the quickest time frame possible.
Pricing your home
One of the most impactful aspects of selling your home will be pricing your home accurately. This will to a large extent determine whether your home sells quickly and for a price that is fair to you. Your home’s price should reflect its worth in the current real estate market. Pricing your home too high will almost certainly prevent interested buyers from making an offer while pricing it too low means leaving money on the table.
When your home is priced correctly, you’re more likely to receive multiple bids strengthening your position in any negotiations. This can even result in a bidding war, and you could end up selling your home for more than your original asking price.
What happens when you underprice
Apart from the fact that you never want to take less for your home than its market price, other issues can arise when you underprice your home.
Your home may be perceived as being of lower quality than comparable properties. Pricing low may arouse suspicion that there are hidden issues such as problems with the foundation, roof, or HVAC. By pricing your home too low, you may inadvertently raise red flags in a buyer’s eyes.
If you price your home too low, it can also give buyers the impression that you are desperate to sell. This actually may be the case, but given that homes in Smith Mountain Lake typically sell after 41 days on the market, it may be more prudent to price accurately and allow market forces to run their course, rather than alert buyers that you are ready to sell at a low price, as this may open you to even lower bids than the initial listing price posted.
What happens when you overprice
Overpricing your home is a common mistake that sellers make. When a home is overpriced, potential buyers simply will not bid, as they don’t see value in the purchase. If your home sits on the market too long, it can become stale. When a home is on the market for an extended period, potential buyers can begin to perceive it negatively, questioning why the home is not selling. Eventually, you may need to lower the price of the house below the market value, just to generate some interest in the property.
Moreover, an extended listing period can have a detrimental effect on your bargaining power, as potential buyers will notice that you have been attempting to sell your house for a while and will be more likely to try to negotiate a lower price.
Don’t overestimate your home’s upgrades
Pricing a home for sale can be a tricky task, especially if you have invested in a lot of upgrades and renovations over the years. It’s easy to fall into the trap of thinking that these upgrades make your home worth more than what the market suggests, leading you to overprice it and potentially scare off potential buyers.
One of the most common mistakes homeowners make is overpricing based on the improvements they made. While you may love the new tile in your bathroom or the upgraded windows, buyers may not value those upgrades as much as you do.
Before you list your home
Conduct thorough research about the local real estate market
Determine the state of the local real estate market to give you an overall view of the median prices for homes listed and homes sold. Realtor.com reports that the median price for a home sold in Smith Mountain Lake, VA was $589,000 as of April 2023. This median listed price for a home in the same month was $549,000. It’s important to note that on the whole homes in Smith Mountain Lake sell close to their listed prices with a sale-to-list price ratio of 99.89%.
Analyze the comparable properties in the area
Comparable properties, or “comps” for short, refer to homes located in the same area or neighborhood that have similar characteristics to your property. These include factors like the size of the home, number of rooms, lot size, age of the house, and other amenities like swimming pools, garages, or decks. By finding comparable properties, you will be able to see at what price other similar homes in your area are currently selling for and how they compare to your property.
Your ultimate goal when pricing your home is to arrive at a fair market price that considers all aspects of your property, including its condition, location, and demand. By knowing the price of comparable properties, you can approach your home’s valuation objectively and determine its market value.
How a real estate agent helps you price accurately
A professional real estate agent will evaluate the recent home sales in your area, consider the current market conditions, and provide you with a number that accurately reflects the value of your home. They take into account factors such as the size of your home, its location, the age of the house, and whether any improvements have been made on the property. A real estate agent can also advise you if there is any need for repairs or upgrades that could add value.
While their experience and know-how enable them to give you the most accurate pricing for your home, what is often overlooked is their objective stance. It can be difficult for some homeowners to price their homes accurately, as they may not be using metrics that determine the market value of the home. In some cases, homeowners attach a sentimentality and a love of their home to the asking price. While this is an understandable reaction when selling a home, it often will not lead to an accurate price point and ultimately could negatively impact the selling process. An experienced real estate agent will have the strength to keep you objective while at the same time understanding that selling your home is often more than just a transaction and can actually be a very emotional endeavor.
What features buyers are looking for in luxury homes
While different buyers are looking for different features, it’s good to know what particular features and amenities are sought after by a large number of today’s market.
Open Floor Plan
Open floor plans have been popular for a while now and will likely continue to be in high demand for the foreseeable future. With an open floor plan, the kitchen, living room, and dining room are combined into one open space, or flow seamlessly into each other. An open floor plan makes the home feel larger and brighter.
Smart Home Technology
Smart home technology has already become prevalent in recent years and will likely continue to be a strong draw for many homebuyers. Homebuyers are now looking for homes that make their day-to-day living easier or more convenient. They want to control the functions of their home using their phone or tablet or just by voicing their commands. Bear in mind that Millennials have grown up and this tech-savvy generation is now the largest demographic of homebuyers.
Energy Efficiency
Environmental awareness has had a considerable impact on the way we live and the homes we live in. There is a greater desire to be eco-friendly and for homes to have more energy-efficient features. These features may include double-paned windows, insulation, tankless water heaters, and solar panels. Again, note that Millenials and younger generations are keen on these features.
Outdoor Space
During the pandemic, outdoor space became more important than ever. House buyers are looking for homes with a balcony, patio, or backyard. These outdoor areas provide a space for individuals to relax and enjoy the fresh air without having to leave their homes. Moreover, outdoor space offers a spot for outdoor dining and entertaining friends.
Home Office
Perhaps the biggest feature to emerge from the pandemic is the home office. With remote work becoming more common, it has become increasingly important to have a dedicated space for work. Many homeowners are looking for a house that has space for a home office that is separate from the living area.
Worthwhile upgrades and improvements
It is highly recommended that you seek the advice of a real estate professional before you undertake any serious upgrades or improvements. Repairs generally help when it comes to inspections and the overall sellability of a home. Small improvements such as replacing old cabinet knobs are not costly and can make a big difference in the home’s aesthetic value.
However, making significant improvements beyond what is standard in your area may be a waste of time and money. Bear in mind that not all home improvements provide the same return on investment (ROI). Some popular home improvements, such as an upgraded kitchen or bathroom, may have decent to good ROI but more substantial investments like a swimming pool or home theatre may not be appealing to potential buyers. In fact, some may even view them as maintenance costs or additional expenses that they don’t want to take on.
The best time to sell Smith Mountain Lake luxury homes
Selling your Smith Mountain Lake luxury home can be as much about timing as it is about pricing. So what is the best time to sell your luxury home in Smith Mountain Lake?
Spring
Spring is typically the most popular time of year to sell a home, and this trend holds true for Smith Mountain Lake. The warmer weather and longer daylight hours make it an attractive time for buyers to tour available properties. Additionally, many families with school-age children often begin their search in the spring in anticipation of moving before the next school year.
Summer
Summer is another popular option for selling Smith Mountain Lake luxury homes. The lake is a popular destination for boating, fishing, and other water activities during this time of year, making it an appealing time for buyers to explore property options. Additionally, the summer months provide ample opportunity for outdoor entertaining, showcasing the potential of a luxurious lakefront property.
Fall
While summer and spring remain the most popular months to sell a luxury home in Smith Mountain Lake, fall has its own benefits for sellers. As the weather cools down, prospective buyers may be more motivated to buy and willing to negotiate terms to close a deal before the upcoming winter months. Additionally, the autumn foliage around the lake provides a natural beauty that can enhance the appeal of your property.
Winter
Winter is typically the least popular time to sell Smith Mountain Lake luxury homes, but it’s not impossible. Buyers will still want to explore options year-round, and those seeking a year-round home may be motivated to make a purchase before the end of the year for tax purposes. Additionally, sellers may be able to leverage the holiday season as an opportunity for festive staging with enticing holiday decor.
Note that those looking to buy during winter are likely more serious than speculative, which could mean a quicker sale with less negotiation.
Working with a top Realtor
When buying or selling a Smith Mountain Lake luxury home, work with top professionals in the area.
With over 28 years of professional experience working as a real estate professional here at SML, I specialize in luxury homes. My aim is to make your buying or selling journey as smooth and successful as it should be. I help buyers find not only their perfect home but also their perfect neighborhood where they can thrive and enjoy all the benefits of living in Smith Mountain Lake. For sellers, I ensure that they get the best possible deal for their properties in the quickest time.
Call me, Jane Sullivan Horne at 540.493.1690 or leave a message here and I’ll get back to you as soon as possible.
