AM I PRICED TO SELL?
Attracting buyers is the name of the game. As a seller, you should have three goals:
- To secure full market value for your home.
- To sell your home as quickly as possible.
- To minimize the stress and inconvenience of selling your home.
This is a challenging market that offers both advantages and disadvantages and to maximize your sales price an aggressive pricing strategy is required. Buyers respond to value and the price you set for your home is your opportunity to attract a buyer, price to high and they will stay away in droves. Your home is worth what a buyer and you as a seller will bioth agree on and it is dictated by current market conditions, trends, recent salles and current competition. A detailed analysis of the market with updates as time passes is the best way a REALTOR® has to keep you informed and armed with the information you need to make timely adjustments as the market dictates. Pricing strategy is critical in today's value driven market.
Here are some factors to consider - recommended by experienced residential specialists - to help you sell your home. This information is not all-inclusive and does not replace the expertise provided by a REALTOR® familiar with your unique market.
What Affects Your Asking Price?
- Urgency. How quickly must you sell?
- Competition. Are there just a few or many homes available in your price category and area?
- Available Financing. Does your home come with an assumable loan that is below today's rate? What are the current home loan interest rates? What financing alternatives are available for your home and area?
- Competitive Market Analysis. Do you know what similar homes in the area sold for within the last six months?
- Condition. What is the condition of your home compared to the features and ammentiies of your competition?
What Doesn't Affect Your Asking Price?
- How Much You Need to Make. Fair market value is the driving force not your need for a specific bottom line. Your agent will work to get you the maximum price this market will net you.
- What you paid. Your price is determined by today's market.
- Maintenance and Decorating Improvements. Potential buyers will evaluate you home based on features and ammenities routine maintenance and decorating improvements (i.e. wallpaper and carpet) will not add to your bottom line.
- The Cost to Build Your Home Today. A replacement value is determined for insurance purposes only.
- Personal Attachment. Prudent buyers purchase based on their emotions, not yours.
- Neighbor's Claims. Don't listen to what your neighbors tell you is the fair market value for you home. Other homes in your neighborhood may not be as similar as you think. Also the terms accepted by both the buyer and seller greatly affect the sale price.
What Happens to an Overpriced House?
- You'll Help Sell the Competition. The "correctly priced" homes look even better if your is overpriced. Most buyers are competitive shoppers.
- Your Home Will Stay on the Market a Long Time. Did you know that 80% of your potential buyers will see your house in the first four to six weeks? If you don't sell them then, it takes approximately three months to replace them with an equal number of newcomers.
- You'll Lose Market Interest and Qualified Buyers. Serious buyers use the value, quality and price of similar properties as deciding factors.
- A Negative Impression is Created. People will wonder why your house is still on the market - they'll believe something is wrong with your home.
- You (The Seller) Would Lose Money. You may have to make extra mortgage payments as well as incur taxes, insurance and unplanned maintenance costs.
- You (The Seller) May Have to Accept Less Money. Studies show that the longer a house is on the market, the greater the discount off the list price. Often a seller will accept less than fair market value in order to sell because of an approaching deadline.
- There is the Potential for Appraisal Problems. The appraiser from your buyer's lending institution must agree that the home is worth the asking price. If the appraiser believes the price is inflated, the loan may not be approved.
Look To a REALTOR® You Need Answers Fast...
As you can see, there are a multitude of factors that determine the asking price of your home. Finding this price yourself can be a long and difficult task. That is why thousands of satisfied homeowners, like yourself, turn to a REALTOR® because they have the tools necessary to compute the fair market value of your house quickly and accurately while allowing for personal considerations (such as the date by which you must sell). Your REALTOR® can also confidently answer your questions about listing, pricing and showing.
A REALTOR®'s goals are the same as yours:
- To get you the most money possible;
- To sell your home as quickly as you can;
- To make selling your home a pleasant and profitable experience for you.
When You Want to Price Your Home to SELL FAST...
Turn to a REALTOR®!