Pricing Your Property
Statistics show, that the best chance for selling your property is within the first three weeks. They also say, the longer the home sits on the market, the less the seller will net down the line. Price is the number one determining factor for a buyer. It’s important to price your property near fair market value at the beginning of the listing agreement. If the property stays on the market too long, then buyer’s will offer considerably less, to test and see if the sellers have become desperate to sell. Interestingly enough, your first offer is usually your best offer.
How Overpricing Can hurt you
Reduces the Amount of Offers Recieved
Lowers Agent Feedback
Limits Amount of Showings
Lowers Amount of Qualified Buyers
Increases Market Time
Nets Less to Seller(carrying costs)
COMPETITION
Buyers educate themselves by viewing many homes. If they are represented by a Buyer’s Agent, then the agent will educate their buyer on what fair market value is for the home. Buyers tend to look at homes within a $10,000-$20,000 range of their target price. If your home is not priced within the correct range, very likely it will not be exposed to its potential or targeted buyers.
LOCATION
Your home’s location and setting influence its value. A home inside a quiet subdivision sells for more than the identical home on a busy street. Remote areas typically sell for less than closed-in areas. Views, streams and trees usually enhance value. You obviously have no control over location.
APPRAISAL
Most homeowners don’t realize that you actually have to sell your property twice: First to a ready, willing and able buyer and then to an appraiser. The buyer is more subjective and compares the amenities of your home to those of other homes in the same price range. The appraiser is more objective and compares age, size and cost-identifiable features in your home against other properties that have sold.
REPUTATION
Overpricing causes most homes to remain on the market too long. Buyers who are aware of a long exposure periods, are often hesitant to make an offer because they fear “something is wrong” with the house. Homes on the market for a long time eventually sell for less than their fair market value.
Who You Work With Matters
We take all of the determining factors mentioned above and analyze the data, so you can make an informed decision on where your home should be priced to sell. Chances are that your home will sell at its fair market value. Pricing it realistically from the start simply increases the likelihood for a timely sale with less inconveniences and greater monetary return. A proper CMA(comparative market analysis) will be presented to you to show you where your home should be priced on the open market.