Pricing your Property for an Effective and Efficient Sale
When you decide to sell your property, you want to sell it for as much money as the market will allow. Pricing too high will keep your home from selling. A low price will keep you from receiving full value.
There are Three Main Points to Consider when Pricing your Property:
Know the Market
* The market determines value.
* Price your home competitively based on the price of homes that have recently sold, are currently for sale, and those listings that have expired in your neighborhood.
Condition of your Home
* Buyers base their decisions on the condition of the home as well as the price.
* Take the time now to prepare your home to attract potential buyers.
Select a Sales Associate
* The Sales Associate brings the market to you. The market brings your price.
* The right Sales Associate is the one who knows the market and can get you the best price possible – not the one who promises you the highest price just to get you to list with them!
Length of Time Required to Sell a Home
THE MAJORITY OF HOMES ARE SOLD WITHIN THE FIRST 3 WEEKS !
IF A HOME IS NOT SOLD WITHIN THE FIRST MONTH, THE PRICE IS PROBABLY TOO HIGH.
The Benefits of Pricing Right
1) Your home sells faster.
2) Your home never loses its “marketability”.
3) There is less inconvenience to you.
4) Sales Associates will focus their energies on your property because it is more marketable.
5) You will attract more potential buyers. A well priced home gets a better response from sign calls and advertising.
6) The closer the price is to market value, the higher the offers.
7) A well – priced property generates the excitement that produces higher sale prices. You net MORE money both in terms of actual sale price and in less carrying costs.
The Factors that Influence Overpricing
1) Extensive renovations and hidden costs
2) Urgent need for money
3) Desire to purchase in a higher priced area
4) Original cost of home too high
5) Lack of real market information
6) Building in “bargaining room”
7) Perceived emotional value
Missing the Right Buyer
You may think that interested buyers “can always make an offer”, but if the home is overpriced, potential buyers looking in a lower price range will never see it. Those who can afford a home at your asking price will soon recognize that they can get better value elsewhere.
Remember, the wrong price attracts the wrong buyers. In fact, it may even help sell your neighbour’s home.
The Results of Overpricing
Many sellers believe that if they price their home high initially, they can always lower it later. Often when a home is priced too high, it experiences little activity. Gradually the price comes down to market value, but by that time it has been for sale too long and buyers are wary. On occasion, the price is dropped below market value because the seller runs out of time. The property sells for less than it is worth.
The Importance of Early Activity
As soon as a home comes on the market, there is a flurry of activity surrounding it. This is the crucial time when Sales Associates and potential buyers sit up and take notice.
If the home is overpriced, it doesn’t take long for interested parties to lose interest. By the time the price drops, a majority of the buyers are lost.