Setting the price on your Home
Along with location and condition, the pricing of a house is a major component of the reasons why a house will--or will not--sell quickly. Understanding pricing needs to be a priority for every seller. Sellers need to be cautious about the tendency to put too much emphasis on the price without evaluating the significance of condition and ambiance. I will help you understand the market for your home and offer guidance in home staging, updating and market preparation. Our goal is to help our sellers obtain the highest dollar value for their home in the shortest amount of time with the least inconvenience.
It's important to get it right the first time
Careful research should be taken into consideration when establishing the original listing price. These important reasons to consider:
1) Market Wear- If the house is overpriced, it won't sell. We are able to show seller's data from the neighborhood that reflects this problem. Homes that remain on the market for an extended period will often sell for less than if priced correctly at the beginning. Buyers come into the market well educated and prepared to purchase. They understand that the number of days on the market is relevant and homes that are market worn often increase the buyer's negotiating power.
2) Testing the Market- If a seller overprices their house with the intention of reducing the price later just to "see what the market will bear", a problem occurs. Buyers have access to market data and they know what they want. Most buyers do not care to test the seller's willingness to sell! They are busy and committed. It is simply easier to find a suitable property that meets their needs and can be obtained within the market conditions. Buyers' rejection of the seller's home leads to longer market time and generally, a lower price than originally suggested by a real estate professional.
3) Under pricing- A careful market study needs to be performed so that a seller understands their home's value. There are reasons a seller may want to underprice, but this is generally reserved for estates, foreclosures, etc. An under priced home may sell quickly, but not garnish enough proceeds to cover closing costs, thus, the seller is required to convey funds in order to close. We offer detailed property analysis by evaluating the home in relation to sales in the area. It is not uncommon for our associates to find ways for a seller to maximize their price with minimal changes, thus, significantly increasing the sales price and bottom line.
Some factors that affect the price of a home
1) Location: A buyer will not overlook this point! However, there are solutions for sellers that help overcome the negatives. Clearly, a home well located, in a desirable area, will usually sell at a better price because the demand is be higher. Three ways to improve this situation are condition, staging, and a strong marketing campaign involving national, regional, and local awareness.
2) Condition: Homes that are well maintained are more appealing to buyers especially in markets where the seller is competing with new construction. Deferred maintenance is a strong detractor. Our associates are trained to advise seller's on how to determine priority issues and save money on repairs. It is important for a seller to know what, why, and how to prepare a home for the market. A few dollars upfront can mean significant gains at the closing table.
3) Desirable amenities: Amenities are a major factor in today's market; however, some upgrades do not hold or add value. Before beginning a major improvement project, call us for an evaluation. We can help you understand the market conditions so that you do not expend funds that cannot be recaptured. Our associates are able to provide you with a list of improvements and make suggestions that should enhance the value of your home.
Methods of setting the price
CMA (Comparable Market Analysis): This is a most helpful tool and very important to the seller. In order for this to be precise, the first step is to have one of our associates tour your home. This allows you the opportunity to point out features and amenities that cannot be determined without attention to detail. Once we have an understanding of your home's features, we can prepare a thorough and accurate market analysis. This comparison will utilize similar properties that are likely to be considered by an appraiser and buyers' in the market. Be aware that many real estate agents will provide the seller with a list of properties that have sold, yet not take the time to analyze the seller's particular property, or leaves it up to the seller to guess where their home might fit in the market.
I offer full service and evaluation to my clients, so they can benefit from accurate information.