When it comes time to sell their home far too many homeowners begin calculating their “net” based on an unrealistic price they get by talking to neighbors, enlisting advice from family and friends, talking to ‘discount brokers’ that often recommend a high price to attract the listing, or setting their home price based on the house down the street.
Overpricing
These aren’t reliable methods and lead to overpricing the home and nothing loses potential buyers faster than an overpriced home. Also, subsequent price lowering trying to hunt and peck for the ‘sweet spot’ price makes it look like you’re getting desperate to sell, which will increase low-ball offers. As they say in the stock market, ‘trying to catch a stock on the way down is like catching a falling knife – you’re going to get hurt!’
Underpricing
On the other hand, you don’t want to underprice either. A lower listing price may decrease the time to sell a slightly; however, you might leave several thousand dollars on the table – that’s your hard-earned equity you are giving to the buyer! Buyers and their Agents will immediately wonder what is wrong with the house or if there is some other ‘problem’ and either stay away or really low-ball the price with a list of contingencies.
In either case, whether over priced or under priced, the seller risks the home sitting on the market, called Days On Market (DOM), for too long after which it gets ‘stale’ and has a mark against it. In today’s market, Realtors look at the MLS before showing a home; and if a house has been in the market for more than 14 days without an offer something is wrong. See the link below for free access to Geni’s book, ‘INSIDER SECRETS That Get Your Home Sold for Top Dollar!’ and see Chapter 7, ‘Ingenious Pricing Gets Top Dollar!’ and find the three things that are most likely be the problem.
Research – The CMA
The best way to price a home is through research, a Comparative Market Analysis (CMA), that is performed by a competent Realtor®, is your best source for setting a correct market value price. The CMA is a professional market analysis of your home that is both subjective and objective ‘comparison’ to the homes in your neighborhood, comparable in size and features that have sold in the last three to six months. A well-done CMA can take several hours of research and analysis including a thorough walk-through audit of your home. There are many factors that must be considered to arrive at a proper market value and a professional Realtor is trained on creating the CMA - this is not a job for amateurs.
If a home in your area sells for a low price, don’t assume yours is worth the same amount. That home may have had condition issues or a personal issue requiring a very swift sale, such as a short-sale. Your home might have something more to offer that the other one did not, and Chapter 2, ‘The 80/20 Rule’ in Geni’s book will help you to prepare to discuss your home with a Realtor like Geni. Let a professional and experienced Realtor’s Comparative Market Analysis (CMA) be your guide with the advice of a real estate professional and don’t rely on “Uncle Ray in his RV parked behind Walmart!”
Bottom line
Remember, a good Realtor will know more about the target market for your home than you do. For more wisdom and guidance click the following link to get a FREE copy of Geni’s new book ‘INSIDER SECRETS That Get You Home Sold For Top Dollar!’.
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