How to price your home for sale is one of the most important issues you will face. Among other things, pricing will determine:
- How quickly your home sells
- How attractive your home will be to buyers
- How you will reach your financial goals regarding the sale
Unless there are extenuating circumstances (the property is located in a high-risk, undesirable, or unusual area) the listing price of your home will set the tone for your entire transaction.
That is why our expertise and knowledge of your local marketplace is so helpful. We will gather statistics that quantify the prices of comparable homes in your neighborhood:
- That have sold
- That have not sold
- That are pending
- That currently are on the market
You may wonder why all of that is so important? It’s crucial to compare aspects of those homes against the unique features of yours. We find great value in analyzing the market conditions, availability of mortgage funds, neighborhood reputation/characteristics, and other important elements to create a Comparative Market Analysis (CMA). This report provides objective information that will help guide an educated and informed decision in pricing your home. By design this is to help you find a price that will yield a speedy and most advantageous sale possible.
Other key aspects to consider include the following:
How soon do I want to sell my property?
– Statistics show the narrower the gap between the asking price and a comparable based estimate of value, the sooner an offer will come in.
How does my home compare to others in the area?
– As your real estate consultants, it is our job to inform you of the necessary details regarding currently listed and sold properties. It is important to show you how much competition there is and what effect market conditions have had in YOUR area. You can then determine your price by analyzing homes comparable to yours in age, size, condition, and location.
What are buyers willing to offer?
– Buyers are interested in your home’s comparable worth, not what you might need to get out of the property. The buyer’s perception of the value of your home will not be altered by the cost of your next home, your need to pay off an existing mortgage, or your hope for a dollar-for-dollar return on home improvements. In the end, it’s the buyer’s evaluation that matters. Buyers make their assessments by comparing your property with others that offer similar features and are in a similar condition to yours.
Is there any harm in overpricing property, then dropping the price if it doesn’t sell?
– Yes. To effectively price your home you must establish a solid correlation between the asking price and the fair market value. A realistic asking price will result in a fast, lucrative sale. If your price is out of sync with the market, you’re likely to turn off a large group of potential buyers. Contrary to popular belief, a buyer usually makes an offer on a fairly priced property before making a lower offer on a listing that is seen as overpriced. Also, overpricing your home often helps sell your neighbor’s home faster than yours.
But my house is worth so much more!
– Emotion and pride should have no place in the pricing process. Sellers speak of value, amount invested and what they can “afford to take.” Buyers consider only price, condition and other properties offered.
Should I leave room for negotiating?
– History has shown that the closer your listing price is to the supporting comparable sales data, the greater your chances for a quick sale at or near your asking price. As a result, we recommend pricing as close to that figure as possible. If you list your home at an unreasonably high price and receive a full-priced offer, the price will be tested during the appraisal and lending process. Therefore it is important to price your property at something statistics and the experience of LOCAL brokers can justify. In fact agents will miss showing your property to potentially qualified buyers simple because at face value, your property is out of their clients’ price range.
Hopefully these tips help provide some clarity as you move toward selling your home. Our team specializes in the Walnut Creek, CA and surrounding areas. One of our services is that we will provide you a free report that helps determine a price range for your home, according to current market data. This is a completely free service, with no obligation. Take advantage by clicking the graphic below.
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