Pricing is one of the most important parts in marketing a home. You want to get as much for the property as you can, but if you set the price too high, you can turn away qualified Buyers. It is crucial to price your home correctly from the beginning, because it may not sell if it is overpriced. Don't make the mistake of thinking that you can reduce the price later. By this time you will have already lost many potential Buyers.
Don't be fooled into thinking that your house is worth more than someone is willing to pay for it, or that it's just a matter of waiting for the "right" Buyer to show up. Surveys show that the longer a house is on the market before being sold, the greater the drop in price from the listing price when it does sell. The Buying public eventually sets an accurate price. An overpriced house just sits on the market, waiting for a price adjustment before it will attract a Buyer.
Buyers who have been shopping around and are accustomed to comparing properties will probably refuse to look at your home with an unrealistic price tag. You and I may know that you would sell for $10,000 less, but Buyers do not know this. As a result, your overpriced property receives little attention. Also, an over-priced home can take additional weeks or months to sell, and the final sale price may even be lower than if the Sellers had started out more realistically.
If your home is overpriced, the marketplace will reflect that to you. When a property fails to sell in a reasonable period of time, we will have a discussion to determine whether too high a price tag is the reason. I will also be getting feedback from other Realtors who have shown your home. Location, condition, and accessibility are three other variables that will affect the price of a property.
You have seen it all. Over the years, interest rates rise and fall, sales prices escalate and decline. No matter what phase the market is in, it is always important to price your home competitively. How can you price your home with confidence?
The first step is to contact me for a Comparative Market Analysis. I will look at recent sales of comparable homes in your area and give you information about other properties that are currently on the market. By comparing the size, location and condition of your home to the competition, I can help you determine the list price for your home. Remember, even in an active market, an inflated price may frighten prospective Buyers away.
Remember that price is only one factor. Consider ways you can make the property more attractive to show. Improve the condition of your home and you will improve its chances of selling.
Here is a scenario for Sellers to avoid. You contact a Realtor to list your home and the Realtor suggests that you might get more for your house than comparable homes on the market. The Realtor assures you that it only takes finding one person who is willing to pay your price!
Some Realtors approach a listing appointment as if they are bidding for your home. The unfortunate result is that you start out with an unrealistic opinion of your home's value. There is often a strong temptation to work with a person who says what you want to hear. An experienced Realtor will back up their opinion of your home's value with hard data. I will give you information about homes that are currently on the market, and recent selling prices of similar properties in your area.
Even the most heroic marketing efforts won't work on a property that is obviously overpriced, (except in the most exaggerated of Seller's markets.) Even if you find a Buyer who is willing to pay more than your home is worth, the sale could fall apart when the appraisal comes in lower than the agreed-upon price. Listen to everything, but be careful!
In case the first price reduction doesn't generate a Buyer, another reduction may be necessary. The monetary value of a house is only what someone is willing to pay for it, but if the market analysis is done correctly, you will get the maximum amount and a timely sale.
Your house has been on the market for five weeks. There have been a lot of showings but no offers, so you are wondering if you should consider a price reduction. You want to get as much as you can for your home, but more importantly you want it to sell!
This may be the time to have a frank discussion. While price may be a major factor, it may not be the only consideration. You’ll need to make it easy for Buyers to view the property and complete the necessary maintenance so that your property is as appealing as possible. We’ll review the current market conditions and prices of other homes in the neighbourhood before determining that a price reduction is necessary.
Even though your price may be competitive, the marketplace may be telling you that Buyers just won't pay your asking price. If all indicators point to a price reduction, it is better to do it sooner rather than later.
*The information contained on this page is for information purposes only and does not constitute as legal advice. Although, drawn from sources deemed to be reliable, the accuracy and completeness of the information is not guaranteed. Diane Luu or Legend Real Estate Group does not assume any responsibility or liability. Any distribution, use or copying of the content on this page is prohibited.