The Proper Pricing of Your Home

Statements from sellers that really have nothing to do with a home’s value

  • Another agent said it was worth more
  • People always offer less than asking price
  • The buyers can always make an offer

 

Other factors that do not affect a home’s value

  • The original purchase price
  • Over improvement (enjoyment)
  • The cost to rebuild in the current market
  • Personal attachment to the property
  • The owners need for equity

 

Dangers of overpricing your home

  • Discourages qualified buyers
  • Better positions competitive homes
  • Reduces advertising response
  • Impacts appraisal valuations
  • Creates doubt & uncertainty
  • Attracts owner financing & bargain hunters
  • Results in your home becoming stale on the market

 

A proactive pricing strategy

  • Overall objective is to sell your home
  • The market is the common adversary (Supply & Demand)
  • Past sales are not always indicative of current performance
  • Proper pricing should yield one offer for every 10 showings*
  • We must integrate pricing with a balanced marketing plan
  • Factors affecting the sale: Location, Condition, Price, Terms, Realtor

 

Some thoughts on the condition that affect price

  • Think like a buyer
  • Start making a list
  • Complete repairs before putting your home on the market