9 critical issues to consider when pricing your home
“Take the necessary critical steps to sell your home!”
“Buyers are far more discriminating, and many of the homes listed for sale don’t sell the first time.
It’s more critical than ever to learn what you need to know to avoid costly seller mistakes in order to sell your home fast and for the most amount of money.”
Why proper pricing is important?
1. A Realtorę has no control over market prices.
Realtors report history -- the public facts of what prices buyers and sellers have set previously.
2. Never select an Realtorę based on price.
“Don't be bought by false price promises”.
Want to list with the Realtor that gives you the highest price quote?
Ask to see it in writing.
Appraisers like an MVA (market value appraiser), charge for an appraisal.
Realtors can give you a free CMA (competitive market analysis). Simply put, it’s comparing in an organized fashion what property is currently for sale and what property has sold that is comparable to yours.
It’s not hard to do and it is information available to all Realtors.
This review is what your prospective buyer is doing and what he will ask his\her Realtor to do before he bids on your property.
If a Realtor is telling you they can get more than what others can get for your property, find out exactly why and how they can convince a buyer to pay more.
And consider, would you pay more as a buyer based upon that Realtor’s response?
3. Four kinds of numbers used to represent your property:
Cost. What was paid plus capital improvements.
Price. What the seller wants.
Value. What the buyer is willing to pay.
Fair Market Value. What a willing buyer and seller will agree upon (what it sells for).
4. Regression and progression:
Regression is the phenomenon of an expensive house being decreased in value because of lesser desirable smaller homes around it.
Progression is the phenomenon of a home selling for more than it's worth because of more expensive property or a more desirable area around it.
5. Importance of proper pricing:
Exposure to more prospects
Increased Realtorę response
Better marketing response
Attracts "cleaner financing"
Attracts higher offers
Means more money to you
Avoids being shop worn
6. The largest impression.
The largest and most impact a house makes on the market, upon buyers and upon Realtors is in the first few weeks of the listing.
Therefore, it should show the best and be priced the best during those weeks.
7. How buyers compare properties?
They do it based on your list price, or as we like to call it, playing Pinball!
As a result of your list price, one of two things happen:
The other houses help to sell yours or,
Your house helps sell the others.
8. Pricing in rising and falling markets.
Overpricing in a rising market may be OK.
Overpricing in a falling market is disastrous.
9. Need room to negotiate?
The wrong price attracts the wrong buyers.
You as a seller have a choice, to put on either a good or a bad price.
Other Realtors with buyers don't know if you're serious about a bad price.
They won't waste their time and reputation showing a qualified buyer an overpriced house.
In other words, the wrong price will make your listing “invisible” to the right buyer!