Pricing your home is the most critical aspect of placing your home on the market. Over pricing your home will almost always lead to longer time on the market. The final sales price will also usually be less than what could have been achieved had the home been priced correctly at the beginning. Sellers should pay very close attention to the sales analysis offered by their real estate professional, and keep in mind the following:
The market value of your home IS NOT:
- What you have in it.
- What you need to get out of it.
- What it is appraised for.
- What you heard your neighbor’s house sold for.
- What the tax office says it is worth.
- Based on memories and treasures.
- Based on the price of homes where you are moving.
The TRUE market value of your home IS…….(wait for it)…….(wait for it)…….(here it comes!)…. what a buyer is willing to pay for it!:
- Based on competition.
- Based on today’s financing.
- Based on today’s economic conditions.
- Based on the buyer’s perception of the property condition.
- Based on location.
- Based on normal market time.
- AGENT ELIMINATION: If Agents are not previewing, or they preview, but don’t show it, they are eliminating your property.
- BUYER ELIMINATION: If your home is not being shown or being shown with no results, buyers are finding better properties in your price range.
* In either case, this is an indication that your home is not priced at current market value.
As a seller you control:
1. The price you ask.
2. Condition of your property.
3. Access to the property.
As a seller you do not control:
1. Market conditions.
2. The motivation of competition
3. Value (this is the buyer’s perception)
During one of the most challenging markets in history, sellers must price aggressively. Sellers have two choices…they can either price to be on the market, or they can price to sell. There’s a big difference!
All my best~
It’s a Matter of Trust ~