Price Your House Right to Sell it Fast
While it is only natural to want to sell your house for the highest price
possible, many home sellers are finding that their homes languish on the
market for months for one simple reason - the price they set is simply
too high.
In a somewhat challenging market, in which there are numerous homes for
buyers to choose from, in many cases the final decision comes down to
the price of the home.
Despite the softening conditions of the real estate markets, real estate
agents across the nation have begun to report that homes are still
selling within 120 days and for at least close to full asking price if
they are priced right when they first come onto the market. Along the
same lines, homes that are overpriced, or even under priced, take far
longer to sell. These homes sit on the market, causing endless amounts
of frustration for sellers and agents alike.
If correct pricing is the key to moving a home quickly off the market,
and for close to asking price, then what exactly determines the 'right'
price? While it may seem complicated to determine a price that will
garner a buyer's attention, it's really not that difficult at all.
First, the price you set for your home must be realistic. Gone are the
days when the market could bear prices that were somewhat over inflated.
Buyers today have more of a choice and they know it. Serious buyers are
still out there but now they are expecting a fair price.
The first step in pricing your property is to carefully listen to your
real estate agent's advice. If you do not really trust them in the
pricing and the marketing of your home, this can spell serious trouble.
Keep in mind that while you naturally think your home is virtually
priceless, agents know the market. It is their job to study market
conditions. They sell homes on a routine basis. In addition, they can
provide a much needed objective third opinion that is non-biased. When
the agent comes back with a suggested price that is below what you had
in mind for your property, remember that it's not personal. After all,
it's their job to provide you with a realistic, honest answer. While the
truth about your home can hurt, in the current market, sellers cannot
often afford to harbor any illusions regarding the true worth of their
home. Agents who tend to move the most properties in the shortest amount
of time are those agents who are willing to be honest about your home's
place in the current market rather than humoring you.
Unfortunately, some sellers have the tendency to insist on listing their
homes at a price stuck in their minds 'just to see.' This can be a huge
mistake. Overpricing your home in the beginning, even if it is just for
a short period of time, can be disastrous. Homes that are overpriced,
quite frankly, sit on the market. Serious buyers pass over them without
ever seeing the potential your home has to offer. Within a very short
period of time they become what is known as a 'stale' listing and even
if you lower the price later it can be very difficult to overcome the
damage that was done in the initial listing period. Once a listing has
gone stale it is almost impossible to regain the initial enthusiasm that
was available during the first weeks of the listing.
So, what should be taken into consideration when pricing your home?
Several factors can affect the real market value of your home.
The current market can have a tremendous impact on the value of your
home. Keep in mind that the market is ever changing. Regardless of what
the market was like a year ago, or even six months ago, you must
understand how the market is performing at the time you list your home.
A well versed agent will consider current real estate statistics to
determine the current value of your home.
Remember that there is a big difference between the comparative market
analysis your agent or broker performs on your house and an appraiser's
value, particularly in the current market. While an appraisal is
certainly more precise it is generally not as accurate (Find out what are the seven
key points you should know about
home appraisals here). Your agent's CMA will include current market conditions and homes on the market, which
your appraisal might not. Therefore, it's important to understand that
your appraisal value might not translate to a final selling price. In
today's market, it's important to ask yourself not what your home is
worth, but what you can get for it at closing.
Other factors that can affect the pricing of your home include location.
Regardless of the actual value of your home, where it's located can
seriously impact the final selling price. Remember the old real estate
adage; location, location, location.
Competition can also play a role in the final selling price. Unlike in
the past, today's prospective buyers are quite educated. With the
Internet, they have almost as much access to sales information and other
homes on the market as your agent. Therefore, it's important to make
sure you are in the loop as well. In today's market, you can't wait for
buyers to come to you; to be successful in selling your home you will
need to take proactive steps to compete for serious buyers. Find out
what you're up against by researching the market on your home. Take the
time to find out what other homes in the neighborhood are selling in the
same price range as your home. Ask yourself where your home falls and
what you can do to make your home stand out more in the crowd.
Finally, understand the importance of the time test in the real estate
industry. If your home hasn't received any attention in the first 30
days on the market, this typically means something is not right.
Generally, it's the price. Don't wait to change your marketing strategy
and lower the price. You may be quite surprised at the attention your
home suddenly gets from serious buyers when you make sure the price is
right. If you want to know what's your home worth, then get an instant
free home value report here!
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