AM I PRICED TO SELL?
Attracting buyers is the name of the game. As a seller, you have two goals:
- To get the most money possible.
- To sell as quickly as you can.
Be realistic. Price is the number one factor that most home buyers use in determining which homes to view. Although the price is set by you, the seller, the value of the home is determined by the buyer. Don't allow your enthusiasm to affect your judgment and lead to overpricing - a mistake you can't afford to make.
Many home sellers set the price of their property too high, thinking that they will "test" the market, believing that "someone" out there will find, love, and finally purchase their home. It is true that there are some homes out there that are unique and "Must See Homes" to appreciate...but this surely does not apply to every single home. Sellers ultimately wind up "chasing the market" down. This means as home values may continue to decline in an area, the initial price recommendation by the REALTOR is usually ignored by the seller. This mindset can cost an owner tens of thousands of dollars in the long run as the home value declines past the initial recommendation. There is no amount of money or marketing which can sell an overpriced home. Buyers are simply too savvy with the internet to be fooled into believing a home is worth more than it is.
Many sellers also believe the "normal upkeep" on a home amounts to price-hike justifications. The truth is, a home buyer should be able to move into a home with "sound" structure, and a roof that doesn't leak. Price reductions are many times justified by a buyer when the seller has simply "learned to live with it"...meaning that in normal circumstances, multiple homes may be available to the buyer without having the headache of fixing up the place. Be sure your home is one of these, and not the former.
Here are some factors to consider - recommended by experienced residential specialists - to help you sell your home. This information is not all-inclusive and does not replace the expertise provided by a Qualified Real Estate Professional at Nextage Realty Professionals.
What Affects Your Asking Price?
- Urgency. How quickly must you sell?
- Competition. Are there just a few or many homes available in your price category and area?
- Available Financing. Does your home come with an assumable loan that is below today's rate? What are the current home loan interest rates? What financing alternatives are available for your home and area?
- Competitive Market Analysis. Do you know what similar homes in the area sold for within the last six months?
- Expenses. What are your selling costs?
What Doesn't Affect Your Asking Price?
- Original Cost. Your price is determined by today's market.
- Investment in Improvements. Potential buyers will evaluate you home (i.e. wallpaper and carpet) and may include the costs to remove or replace in their offer.
- The Cost to Build Your Home Today. A replacement value is determined for insurance purposes only.
- Personal Attachment. Prudent buyers purchase based on their emotions, not yours.
- Neighbor's Claims. Don't listen to what your neighbors tell you is the fair market value for you home. Other homes in your neighborhood may not be as similar as you think. Also the terms accepted by both the buyer and seller greatly affect the sale price.
What Happens to an Overpriced House?
- You'll Help Sell the Competition. The "correctly priced" homes look even better if yours is overpriced. Most buyers are competitive shoppers and they are surfing the internet looking for the best deals per Sq.Ft. Not unlike many of us who shop online for the absolute best prices on inexpensive items, likewise buyers looking to spend hundreds of thousands of dollars will make sure they are making the best investment.
- Your Home Will Stay on the Market a Long Time. Did you know that 80% of your potential buyers will see your house in the first four to six weeks? If you don't sell them then, it takes approximately three months to replace them with an equal number of newcomers. At Nextage Realty Professionals, we know how to expose your property to massive amounts of potential buyers! A well priced home will sell fast, guaranteed!
- You'll Lose Market Interest and Qualified Buyers. Serious buyers use the value, quality and price of similar properties as deciding factors. Your home may be special to you, because you made it that way for you and your family. An unbias person sees the house against its competition, not for the care and time put into it.
- A Negative Impression is Created. People will wonder why your house is still on the market - they'll believe something is wrong with your home. Some sellers have actually created a negative stigma in their communities by asking for unreasonable prices. In turn, these homes have sat vacant, and thus created a negative stigma about the area; a stigma that says, "These homes won't sell".
- You (The Seller) Would Lose Money. You may have to make extra mortgage payments as well as incur taxes, insurance and unplanned maintenance costs.
- You (The Seller) May Have to Accept Less Money. Studies show that the longer a house is on the market, the greater the discount off the list price. Often a seller will accept less than fair market value in order to sell because of an approaching deadline.
- There is the Potential for Appraisal Problems. The appraiser from your buyer's lending institution must agree that the home is worth the asking price. If the appraiser believes the price is inflated, the loan may not be approved.
Look To a Qualified Real Estate Professional When You Need Answers Fast...
As you can see, there are a multitude of factors that determine the asking price of your home. Finding this price yourself can be a long and difficult task. That is why thousands of satisfied homeowners, like yourself, turn to a residential specialist at Nextage Realty Professionals. A residential specialist has the tools necessary to compute the fair market value of your house quickly and accurately while allowing for personal considerations (such as the date by which you must sell). Your residential specialist can also confidently answer your questions about listing, pricing and showing.
A residential specialist's goals are the same as yours:
- To get you the most money possible;
- To sell your home as quickly as they can;
- To make selling your home a pleasant and profitable experience for you.
When You Want to Price Your Home to SELL FAST...
Turn to a Qualified Real Estate Professional at Nextage Realty Professionals! Remember, if it isn't Nextage Realty Professionals, it's not the same!