PRICING YOUR HOME
Our pricing strategy combines comprehensive MLS-driven sales data with over 25 years of combined industry experience to accurately assess your home's value against the competition. It is both an art and a science that blends objective research with a deep understanding of the current Real Estate market.
An agent has no control over industry fluctuations, only their strategic approach to them. Never select an agent solely based on a promised listing price. While doing your research, check out this article on Mistakes to Avoid When Hiring a Listing Agent.
THE RIGHT PRICE SHOULD:
- Create demand
- Attract Buyers
- Help you sell as quickly as possible
- Allow you to earn the most money possible
The simple fact is, price is the number one factor that most homebuyers use to determine which homes they
want
to view. And it's important to remember that, although the price is set by you, the value of the home is
determined by the buyer. Try to avoid allowing your emotions to impact your pricing decisions. Overpricing
is a
common mistake that can cost you big in the end. Of course, there is no price you can put on the cherished
memories your home has provided. Setting emotion aside will allow you to reap one final gift from your home;
the
maximum profit possible.
You must measure how your home competes against other properties currently offered for sale, and those that
have
recently sold in your neighborhood. Buyers are savvy and they will be comparing.
PROPER PRICING GENERATES:
- Exposure to more buyers
- Increased Realtor® response
- More advertising/sign calls generated
- Higher offers
- More money to seller
…All equating to a faster sale and less inconvenience for you!
COMMON REASONS FOR OVERPRICING:
- Over-improvement compensation
- Profit Needs
- Purchasing in higher-priced area
- Original purchase price was too high
- Lack of factual data
- Bargaining room
- Move isn't necessary
- Assessed value
- Emotional attachment
- Opinion of family and neighbors
Dangers of Over Pricing:
- Pricing high from the start with the assumption that you can reduce it later is a critical mistake. By the time you decide to lower the price, the buyer had already passed it by because of the original higher price, and reducing it will only send a red flag of concern that something is now wrong with the house, and that’s why you’ve reduced.
- A major cause for concern is appraisal problems; overpricing can lead to loan rejections and significantly lost time.
- Even if your home is nicer than other homes in the same area, your house won't be picked for viewing if you set the price too high. If it is nicer than others, AND priced accurately, the buyer demand that will generate can lead to multiple offer scenarios and higher-than-list-price offers.
- Long “exposure” periods due to overpricing can cause buyers AND agents to become hesitant to make an offer because they fear (again) that sitting on the market too long must mean that something is wrong with the property.
- Attracting unqualified/unrepresented buyers.
- Overpricing your home might actually help sell similar homes that are priced low, which could ultimately affect your appraisal value.
- You could lose money making extra mortgage payments while waiting for a buyer, not to mention continuing paying taxes, insurance and unforeseen maintenance costs.
THE ROLE OF A REALTOR IN PRICING:
- Providing you with a comparative market analysis (CMA), a comprehensive report on the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMA is performed by comparing recently sold homes in the area, and currently active homes to understand your competition.
- Staying familiar with ever-changing market trends that affect home pricing.
- Staying apprised of the market activity of comparable homes.
- Estimating your net proceeds.
- Helping to determine offering incentives.
There is no "exact price" for real estate in this constantly-shifting industry. The market determines the value…together we determine the price
PRICE IS DETERMINED BASED ON FACTORS YOU CAN CONTROL:
- Listing timeframe
- Financing alternatives
- Home condition
- Exposure methods
When you hire our team to represent you, we will come to your home for a private consultation to answer all of your important questions, provide a comprehensive report on comparable sales currently in your area, and create a detailed list of what, if any, repairs should be done in order for your home to stand strong against the competition.
We’ll also be able to discuss the maximum net profit to you based on any route you choose to take, whether you want to make major or minor improvements, or sell as-is! We will be with you every step of the way.