Pricing Your Home To Sell
Your home's listing price can make or break your sale. These tips give you a starting point for pricing your home. Always keep your primary objective in mind, which is to sell the home!
What are the benefits of proper pricing?
- Faster sale
- Less inconvenience
- More prospects
- Agent enthusiasm
- Higher offers
- Higher net equity
1. “Should we select an agent based on price?”
- Select agent who focuses on services and the market (asking price)
- Establish price
Real estate sales professionals do not establish value, the market does.
2. “How do I set the asking price?”
- Select broker first
- Have a comparative market analysis done
- Price at market value
In a normal market, the asking price should be at the ‘top of the solds, and at the bottom of those for sale.’
3. “Our home is better than the others.”
- Check location, size and amenities
4. “What if the market is changing?”
- Market trends should influence your marketing strategy
Rising: price it a little higher because the market will rise to catch it.
— Flat: you must price right at market value.
— Falling: overpricing here is dangerous because it will stay on the market for a long time.
5. “We’ve had a fee appraisal higher than that.”
- When was the appraisal done and for what reason?
- Consider an update by previous appraiser.
6. “We paid more than that for it.”
- Cost – what you paid
- Price – what you ask
- Value – in the eyes of the beholder
- Market value – what it’s worth now
There’s no relationship between cost and market value.
7. “We need to get our costs out of it.”
- Principle of substitution
Value is a function of not what’s in a home, but what you get out of your home.
8. “What about the value of our improvements.”
- “Most improvements are for enjoyment, not for resale.”
If you knew at the time, that you would be moving today, would you still have made those improvements?
9. “They can always make an offer.”
- Asking price attracts the type of buyer
The right price attracts the right buyers; the wrong price attracts the wrong buyers.
10. “ We can always come down.”
- Could be on the market longer if overpriced
- Buyers ask how long it’s been on the market
- Market is wary of homes that are out there too long
11. “We need the money.”
- Has no effect on the value of the home
Would you pay more if you knew the sellers needed the money?
12. “We want to build in bargaining room.”
- This is a burden that hinders the sale
Educated buyers will recognize a fair price and are far more likely to pay it.
13. “Couldn’t we just try it at a higher price?”
- DVD “Pinball” visual.
Buyers compare homes – if yours is overpriced, buyers may use it to justify the purchase of another home.
14. “Couldn’t we just try it for a couple of weeks?”
- You will waste your best marketing period – List at market value
15. “We’re moving to a higher priced area.”
- Reality: Destination doesn’t affect value of your home
Would you lower the price of your home for someone moving from a less expensive area?
16. Buying up, in a down market.
- Moving from a lower priced Home A to a higher priced Home B
- Net difference: Lower in low market - Hidden benefit: Higher savings in declining market
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The information provided in this site is believed to be accurate, but is not guaranteed. The data relating to real estate for sale on this web site comes in part from the Internet Data Exchange (IDX) program of NORMLS. Real estate listings held by brokerage firms other than Prudential Karam & Simon are noted and include the name of the listing brokers. The materials contained within this page may not be reproduced without the express written consent of this broker. The information contained within this page is for personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. All information is deemed reliable but is not guaranteed and should be verified by personal inspection or with the appropriate professionals. Listings displayed on this website may be subject to prior sale or removal from sale; availability of any listing should always be independently verified.