“… price is your most important sales tool in real estate…”
Let’s say your terms are competitive: your timing’s clearly set. Now, what about your asking price? Without question, price is your most important sales tool in real estate. Here’s why:
The period of best opportunity for selling a home at a reasonable price is the first four weeks after it is put on the market. Buyers who have seen most available listings are waiting for just the right house to come on the market. If your house is priced right from the beginning, you are in the best position to attract the maximum number of buyers able to pay the price your home is worth – and to sell your home within your timetable.
- If your house is under priced, you may be swamped with lookers and perhaps get many offers. But you could lose thousands on one of your family’s largest investments.
- If your house is overpriced, lookers are apt to be few and far between, with little chance of any offers to pay your unrealistic price. You may lower your price later, but by that time you will have missed many of the most interested buyers.
How do you Set the Right Price?
Arriving at an accurate asking price involves up-to-the-minute research and experienced judgment. Besides thoroughly analyzing current real estate market trends, here are a few of the basic steps I will take to set the right price for your home:
- Measure your home against similar neighborhood homes that have recently been sold or are currently on the market.
- Determine what features make your house stand out among others currently on the market. After all, buyers are comparison shoppers. I will also weigh the spending of a reasonable amount of money on cosmetic fix-ups that might enhance the marketability of your house in order to earn the highest possible sale price. I will present all of these findings and options to you in my detailed Comparative Market Analysis (CMA).
The right price is usually within 5% of market value (a constantly changing factor) and usually results in a fair-dollar sale within a reasonable amount of time. As we say, “price sells.”
Why is overpricing risky?
A price more than 5% over market value may have these results:
- Buyers may resist inspecting your home because they can find better values elsewhere. Just think – overpriced houses tend to sell the competition first.
- Potential buyers who can’t afford the price don’t bother to look–or to make offers.
- Even if we find a buyer willing to pay an over market price, they may have difficulty getting financing. Lenders may not approve a loan if the appraisal is lower than the contract price. The delay from a failed sale can mean missing out on the critical first 30-day marketing period.
- Your unsold home may begin to get “stale,” as the marketplace assumes there is “something wrong” with the house the longer it sits on the market
- Later down the road, to make up for lost time, you might be inclined to lower the price below competing houses in order to move it.
Is it Ever Smart to Under Price?
Setting a price below market value usually isn’t preferable because you may be losing money. If time is more important than money and you need a faster-than-average sale, you may consider setting a bargain price to attract the greatest number of prospects. Market value delivers the optimum number of prospects at the best price for a quick sale.
When you’re ready to sell your home, please take advantage of my real estate expertise to help you understand current market conditions and price your home to sell.
How a Market Analysis Helps Price it Right
Only a professional market analysis can give you the accurate, reliable foundation you need to price your home right. When you ask me to make a fair-market analysis of your home, here is what I do:
- Evaluate your home’s location and lot size; your home’s age, size and condition; the number of bedrooms, baths, total rooms; the kinds of extra feature you have (such as improvements, built-ins, garage, tool shed, spa).
- Examine the condition and appearance of your home’s exterior and interior. I can help you determine what repairs or refurbishing may be needed to sell your home at its best price.
- Review the assessed value of your home, its previous sale prices, your maintenance and utility costs and your local taxes.
- Compare your home with similar area properties currently for sale or recently sold. Only a licensed REALTOR® like myself has access to the Multiple Listing Service (MLS), which gives me all the information needed to accurately and thoroughly compare your home to similar area properties.
- Note current real estate market conditions with a practiced eye; also fill you in on current interest rates and lenders’ criteria