Pricing Your Home
One of the most important steps in this process is going to be choosing a pricing strategy that works. We use the latest market data at the hyperlocal level and our knowledge of market trends to help you choose a pricing strategy tht will help you sell your home quickly.
The right price should:
- Attract buyers
- Allow you to earn the most money possible
- Help you sell as quickly as 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 enthusiasm to impact your better judgment - overpricing is a common mistake that can cost you in the end.
Dangers of Overpricing
- Sellers often feel that they can price the house high and someone will "make an offer." This is not how it works. Buyers will avoid the home, feeling that either the seller or their agent or both, are unrealistic and not easy to work with.
- Most of the activity on your home will occur in the first few weeks. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical.
- Don't start with a high price and the assumption that you can reduce it later. By the time you decide to lower the price the initial interest is lost and many other buyers will now want to cut the price even further.
- A major cause for concern is appraisal problems; overpricing can lead to loan rejections and lost time.
- Buyers and agents become aware of the long exposure period and often are hesitant to make an offer because they fear something is wrong with the property.
Our Role as a Real Estate Agent in Pricing Your Home
- Provide you with a comparative market analysis (CMA), a comparison of the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMA is performed by comparing previously sold homes in the area, and currently active homes to know your competition.
- The market determines value; together we determine the price.
- You determine the price based on these factors:
- Condition (homes in better condition will sell faster and typically for a higher price, as buyers don't want to do a lot of work)
- Location (real estate is about location location location, we can't control it but it is important)
- Competition (how many other similar homes are on the market at the time you will list yours)
- Keep in touch with market trends and keep up to date with market activity of comparable homes.
- Estimate your net proceeds.