Pricing FactsThe best chance for selling your property is within the first three weeks. Studies show that the longer a property stays on the market, the less the seller will net.
It is very important to price your property at a competitive market value at the signing of the employment agreement. A seller’s market becomes a buyer’s market if the property stays on the market too long. Interestingly, your first offer is usually your best offer. Here are reasons for pricing your property at the market value right from the start in order to net you the most amount of money in the shortest amount of time.
Your home must be priced within the appropriate range. You must actually “sell” your property twice: First to a buyer and then to an appraiser. The buyer is more subjective and compares the amenities of your home to those of other homes in the same price range. The appraiser is more objective and compares age, size and cost-identifiable features in your home against other properties that have sold.
An overpriced home:
- Minimizes offers
- Lowers agent response
- Limits qualified buyers
- Lowers showings
- Lowers prospects
- Limits financing
- Wastes advertising dollars
- Nets less for the seller
TimeChances are that your home will sell at its fair market value. Pricing it realistically at the outset simply increases the likelihood for a timely sale with less inconveniences and greater monetary return.
CompetitionBuyers educate themselves by viewing many homes. They know what is a fair price. If your home is not competitive in value with those they have seen, it will not sell. Buyers typically look at homes within a $10,000 price range. If your home is not priced within the correct range, very likely it will not be exposed to its potential or targeted buyers.
ReputationOverpricing causes most homes to remain on the market too long. Buyers, aware of a long exposure period, are often hesitant to make an offer because they fear “something is wrong” with the house. Often homes on the market for a long time eventually sell for less than their fair market value.
InconvenienceIf overpricing keeps your home from selling promptly, you can end up owning two homes – the one you’ve already purchased and the one you’re trying to sell. This can prove costly and worrisome, as well as inconvenient.
Your home’s location and setting influence its value. A home inside a quiet subdivision sells for more than the identical home on a busy street. Remote areas typically sell for less than closed-in areas. Views, streams and trees usually enhance value. You obviously have no control over location.