Upgrades, price cut pave way to sale

Where: Cumming

Why they sold: To purchase a new home with a basement, just a couple of miles away in Westbrook, an O’Dwyer Homes neighborhood also in Cumming. “We’ve got two kids and the kids are getting a little older (ages 7 and 9). We wanted to make sure we had some space for the kids to grow into as well as us as a family. It was time to make the move,” said Steve, 32, who works in the parking and transportation industry.

Time on market: 85 days

Original price: $249,900

Sale price: $235,000

What it took: Maintaining the property and making updates. They tried to sell a few years ago but were unsuccessful. They took the home off the market and updated the kitchen with buyer-friendly features such as granite countertops and enclosed the two-story family room to create a playroom upstairs. Working with Brenda Longoria and Jane Hemingway with Prudential Georgia Realty, they originally set the price to offset the cost of upgrades. But once they lowered the price to $239,900, “we started getting a lot of action,” Hernandez said. They sold the home and purchased their new five-bedroom, five-home with a finished basement in May.

Potential stumbling block: After they had a contract, the appraisal showed the home value to be less than the agreed-upon purchase price. “That made it very difficult to swallow, especially has a homeowner that cared for their property and maintained it well and did some upgrades,” he said. Longoria said many appraisers in the first half of 2012 haven’t kept up with the improvement in the market, presenting challenges for sellers. Hernandez adds: “Home prices should always be based on market demand. If somebody is wiling to pay a certain amount of money, that’s what the seller is entitled to sell it for. But that’s the market we were faced with today.”

Seller’s hint: Establish your expectations when selling and buying.

“Have your floor on your selling price and have your ceiling on your buying price,” Hernandez said.