Why Price Is Key To Selling Your Home | ||
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Your home is your castle - even if it is for sale. Let's assume it is in splendid shape. 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. 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 first, you are in the best position to attract the maximum number of buyers able to pay the price your home is worth - and sell your home within your timetable.
If your house is underpriced, 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 asking price involves up-to-the-minute research and experienced judgement. Besides enlisting my help in checking out the current real estate market conditions and financing trends, the basic steps include:
- Measuring your house against similar neighborhood houses that have recently sold or are currently on the market.
- Determining what features make your house stand out among others currently on the market. After all, buyers are comparison shoppers.
- Weighing the spending of a reasonable amount of money on cosmetic fix-ups that might enhance the marketability of your house and earn the highest possible sale price
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. (Overpriced houses tend to sell the competition first.)
- Potential buyers who cannot afford the price don't bother to look - or to make offers.
- A buyer willing to pay an overmarket price 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 will begin to get "stale," as the marketplace assumes ther is "something wrong" with the house.
- 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 Underprice?
Setting a price below market value usually isn't preferrable 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. From experience, I know market value delivers the optimum number of prospects at the best price for a quick sale.
When you are ready to sell your home, take advantage of our real estate expertise to help you 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 us to make a fair market analysis, here is what we do:
- Evaluate your home's location and lot size, your home's age, size and condition; the number of bedrooms, baths, total rooms; the extra features you have (such as improvements, built-ins, garage, toolshed, spa, etc.)
- Examine the condition and appearance of your home's exterior and interior. We 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 property taxes
- Compare your house with similar properties currently for sale and recently sold.
- Note current real estate market conditions with a practiced eye; also current interest rates and lenders criteria.
With our help you will be able to price your house correctly to sell, give us a call or send us an email. We are ready to help.
Next Home Selling Article: Preparing Your Home To Sell
