9E)Getting the Price You Want (and Need)
Getting the Price You Want (and Need)
"Depending on how a buyer is made aware of your home, the price is often the first thing they see. As a result, many homes may not be shown because prospective buyers discard them as not being in the appropriate price range."
When you decide to sell your home, setting your asking price is one of the most important decisions you will ever make. Depending on how a buyer finds your home, the price is often the first thing they see, and prospective buyers discard many homes as not being in the appropriate price range before these homes are given a chance to be shown. Your asking price is often your home's first impression, and if you want to realize the most money you can from your home's sale, you must make an excellent first impression. Because this is not as easy as it sounds, your pricing strategy should not be taken lightly. Pricing too high can be as costly to a home seller as pricing too low. Looking at what homes in your neighborhood have sold for is only a tiny part of the process, and this on its own is not nearly enough to help you make the best decision. This report will help you understand some important factors about pricing strategy to help you sell your home for your desired price.
Pricing Strategy Starts with Good Information
Before you can begin to know what your home is worth, you should do some research, bearing in mind the following: An analysis of what houses have recently sold for in your neighborhood is NOT enough to help you correctly price your home. A quick scan up and down the street at the prices of recently sold homes will give you a starting point. However, this is not nearly enough for you to base your entire pricing strategy on. You need to understand how buyers look for a home. Think about how you conducted your house-hunting search to find the home you are now considering selling. You most likely did not confine your search to a single neighborhood, but perhaps different neighborhoods or towns to find a home that best matched your needs and desires. The prospective buyers who will be viewing your home will similarly conduct their searches. That means they will compare your home to, for example, brand-new development homes, century homes, 10-20-year-old homes, etc. They will also consider locations such as homes in established neighborhoods, the middle of town, the suburbs, or country properties. Each home will have a different look and feel, and a prospective buyer might consider all of these variables in the search for a home. You can see, when you're selling your home, you're not just competing with the home around the corner but also with all homes in other areas that have the same essential characteristics: i.e., number of rooms, overall living space, etc.
How Sellers Set Their Asking Price
To understand how much to offer for a home you're interested in, you need to know how sellers price their homes. Here are four common strategies you'll start to recognize when you begin to view homes:
Every seller wants to realize the most money they can for their home, and real estate agents know this. If more than one agent is competing for your listing, an easy way to win the battle is to over-inflate the value of your home. This is done far too often, with many homes priced 10- 20% over their actual market value. This is not in your best interest because, in most cases, the market won't be fooled. As a result, your home could languish on the market for months, leaving you with a couple of significant drawbacks: ‣ Your home is likely to be labeled as a "troubled" house by other agents, leading to a lower-than-fair market price when an offer is finally made ‣ You have been greatly inconvenienced with having to constantly have your home in "showing" condition . . . for nothing. These homes often expire off the market, forcing you to go through the listing process again.
2. Somewhat Overpriced:
About 3/4 of the homes on the market are 5-10% overpriced. These homes will also sit on the market longer than they should. There is usually one of two factors at play here: either you believe in your heart that your home is worth this much despite what the market has indicated (after all, there's a lot of emotion caught up in this issue), OR you've left some room for negotiating. Either way, this strategy will cost you both in terms of time on the market and the ultimate price received
3. Priced Correctly at Market Value
Some sellers understand that real estate is part of the capitalistic supply and demand system and will carefully and realistically price their homes based on a thorough analysis of other homes on the market. These competitively priced homes usually sell within a reasonable time frame and very close to the asking price.
4. Priced Below the Fair Market Value
Some sellers are motivated by a quick sale. These homes attract multiple offers and sell fast - usually in a few days - at or above the asking price. Be cautious that the agent suggesting this method is doing so with your best interest in mind.
When you put your home on the market, you don't want any unpleasant surprises that could cost you the sale of your home. By understanding these tips you will be on the road to selling your home fast and for top dollar. I hope you found this special report helpful, but please realize that this is just a tiny part of the overall process. Please call us at 858-281-4659 to build a plan together to realize your goals.