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Pricing your home is both an art and a science. Achieving the optimal price is the result of objective
research into comparable properties and a feeling about your property and the current market.
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. It's important to remember that, although the price is set by you, the value of the home is determined by the buyer. Overpricing
is a common mistake that can cost you in the end.
The Importance of Proper Pricing
Faster sale and less inconvenience
Exposure to more buyers
Increased realtor response
More advertising/sign calls
Attracts higher offers
Means more money to seller
Avoids being shopworn
What really matters is how your home compares to others currently offered for sale and recently sold in
your neighborhood. Buyers will be comparing.
Common Reasons for Overpricing
Over improvement
Need
Purchasing in higher priced area
Original purchase price too high
Lack factual data
Bargaining room
Move isn't necessary
Assessed value
Emotional attachment
Opinion of family and neighbors
Dangers of Overpricing
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.
Buyers who have seen most available homes in their price range are waiting for the "right house" to come
on the market. That's why is a house is priced right, it will sell quickly. The buyers are there waiting
for it.
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, it may be too late, as interest will have already waned.
A major cause for concern is appraisal problems; overpricing can lead to loan rejections and 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.
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.
Overpricing or underpricing will:
Attracting the wrong buyers.
Fewer potentially qualified buyers will respond.
You might help sell similar homes that are priced lower
You could lose money as a result of making extra mortgage payments while incurring taxes, insurance
and unplanned maintenance costs
The Role of a Real Estate Agent in Pricing
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.
There is no exact price for real estate
The market determines value and together we determine the price
You determine the price based on the factors you control such as:
Marketing time
Financing alternatives provided
Condition
Exposure method
To help you decide on selling or buying property, I will:
Keep in touch with market trends and current comparables
Estimate your net proceeds
Help to determine offering incentives
In short: No agent has control over the market, only the marketing plan. And never select an agent based
on what he or she thinks is the right price price. Select an agent based on professionalism, integrity, and
willingness to always be available to help you.
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