|
|
|
|
Pricing your home is by far the most important decision you will make.
Here are a few strategies to help you figure out how much your home is worth and ensure you recieve the highest possible price:
Abandon your personal point of view.
How much will a ready, willing, and able buyer be willing to pay for your home? It is not important to a buyer how much you paid for the home, how much money you need for the down payment on your next home, or how much it will take to get you out of debt.. The only concern a buyer has is whether or not your home is at a fair price for the neighborhood.
Consider market conditions.
Are home prices in your area trending upwards or downwards? Are homes selling quickly or languishing? Will your home be on the market in the spring home buying season or in the dead of winter? Are interest rates attractive? Is the economy hot or cold? Will you be selling in a buyer's market or a seller's market? The answers to these questions should be considered when pricing your home.
Desirability
Is there: Steep driveway? small yard? sloping yard backing to a busy street? small master bedroom? no garage? undesirable location? small square footage? These are all examples of factors to take into consideration when pricing. If your home has undesirable features that cannot be changed, the only thing that can be changed is the pricing. When selling your home, you always have to consider the competition. If someone can get a 3 bedroom ranch that backs to common ground for the same price as a 3 bedroom ranch that backs to a busy street, they will always pick the one that is more appealing. In order to sell your home, it has to be the most appealing home in your price range.
Find a minimum of 3 comparable properties
Your Realtor should provide you with a comparative market analysis(CMA), which shows the prices of comparable homes. Comparables consist of close or same square feet, close or same style, and close or same number of bedrooms and baths. Pricing your home correctly based on comparables will provide you with the highest possible price for your home. Your agent's main goal will be to price your home so that you walk away with the highest selling price possible without overpricing and eventually getting less than you should.
What if I price my property too high?
Overpricing your home can be disastrous. The first two weeks a home is on the market are generally the most active as well as the most promising for getting top dollar. Studies prove that if you are priced to high, your home will stay on the market no matter how much exposure and advertising it gets. Agents can track how long a property has been on the market and as the days on market accumulate the perceived value of your home declines. The most common pricing mistake people make is padding or overpricing.
|
|
|
|
|
