Pricing Your Home
A Summary to Pricing your Home to Sell.
The first and most important factor is your goals and timeline. Communicate your knowledge, concerns and objectives. This is often the most important investment we have. Taking the steps to successfully achieve your dreams is accomplished with you as central to the process.
Next, try remain as objective.. A home is personal and is a reflection of you, your lifestyle and values. However to sell you must take a step back and make objective decisions based on the facts.
In selecting a Real Estate Professional, the primary considerations should be:
- Marketing Plan and Services
- Comfort and Trust
Comparable properties are essential in establishing the True Market Value. The price your home should be at the top of similar sold listings and the bottom of the equivalent active listings.
You also need to consider the added value of location, size, and amenities.
- Location, by far the most important criteria
Direction it faces, views
Location on the street
Proximity to schools, shopping or important landmarks
- Size of the home
Square footage and lot size
Garage and/or outbuildings
Open space and/or surroundings
- Amenities and Design
Style and age
When using an appraisal for value consider when and for what purpose it was done.
- Insurance or refinancing it tends to be HIGHER
- Taxes or new mortgage it tends to be LOWER
The buyer’s appraisal is critical because it’s the value that the price needs to meet.
A Strategic Market Analysis which looks at all the current market factors is the most relevant summary in pricing your home. It specifically related all of the above to your unique residence.
Frequent Pricing Myths:
- We need to get out, what we have in the house.
Cosmetic, maintenance or drawing out equity is not an improvement.
Need does not equal value.
- They can always make an offer.
A higher price attracts buyers with higher expectations.
The right price attracts the right buyer.
- We can always come down.
Over priced homes are on the market too long and become market weary.
Seller ends up in a compromised position.
- We want to build in room to bargain
Educated buyers recognize a fair price.
Over-priced homes help well priced homes sell.
- We’re moving to a higher priced area.
Different market areas have different price factors and different expectations.
The highest activity for a listing is right away and pricing right is critical. It’s dangerous to price too high, especially in a declining market because you will only follow the market down.
The benefits of pricing your home appropriately:
- Faster Sale
- Less inconvenience
- More prospects
- Agent enthusiasm
- Higher offers and multiple offers
- Higher net equity
- Call 505-955-7963
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