PRICE IS THE MOST IMPORTANT FACTOR IN THE SALE OF YOUR HOMEā¦
The consequences of making the wrong decisions are painful. If you price your home too low, you will literally give away thousands of dollars that could have been in your pocket.
Price it too high, and your home will sit unsold for months, possibly developing the reputation of a problem property and buyers will think there is something wrong with your homeā¦agents call a home that has been on the market for an extended period of time āStaleā
FAILURE to understand market conditions and pricing your home incorrectly could cost you thousands of dollars. This can also cause your home not to sellā¦ā¦..andĀ NOTĀ allow you to go through with your plans.
Setting the proper asking price for your home is the single biggest factor that will determine the success or failure of your home sale.
You simply cannot afford any āGuessworkā in this critical step!Ā
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There are 5 Essential Ingredients That Comprise the Formula for Determining the Value of Your Home
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1. Location
The location of your home is the single greatest determination of how much your home will be worth.Ā Ā The better the location – the higher the price.Ā School districts, high or low traffic, accessibility to major roads and shopping- all must be considered in determining the value of your home.Ā Your land value has the greatest effect on value.
2. Size of the Home
The square footage of your home plays a significant role in determining its value.Ā Meaning, if there are similar homes on the market with comparable locations and in similar condition, the larger the home, the greater the value.Ā In addition to room sizes, the layout is extremely important-Here are some examples: Does the master bedroom have a private bath? Can you see the den area from the kitchen? Etc.Ā The amount of bedrooms, bathrooms, garages, lot size and basement all play a role in determining the value of your home.
3. Condition
The general upkeep and presentation of your home is critical to obtaining the highest value for your home.Ā If there are similar homes on the market with comparable locations and equal square footage, the homes with updated kitchens, bathrooms, roof, windows, siding & landscaping will bring the higher value.Ā Updated kitchens and bathrooms will bring the highest return on your investment.Ā DĆ©cor plays an important role as well.Ā If buyers feel that they must invest a significant amount of money into the home to bring it up to their standards, the value of the home will be affected.
4. Market Conditions
Recession, inflation, interest rates, mortgage availability, competition and the publicās perception of the general economy all make up the market and directly affect the value of your home.Ā You must recognize the current market conditions and price your home accordingly.
5. Asking Price
Once we have thoroughly evaluated the Location, Size of the Home, Condition and Current Market Conditions, only then can you come up with a PRICE that will bring the correct buyers into your home to get you the highest possible price. If we price your home correctly, it will sell sooner and it will put more money in your pocket.
BENEFITS TO PROPER PRICINGā¦
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Faster Sale
Ā The proper price gets a faster sale, which means you save money on mortgage payments, real estate taxes, insurance and other carrying costs.
Less Inconvenience
As you know, it takes a lot of time and energy to prepare your home for showings, keeping the property clean, making arrangements for your children & pets and generally altering your lifestyle.Ā Proper pricing shortens market time.
Increased Sales Agents Response
When sales people are excited about a property and its price, they make special efforts to contact all their potential buyers and the show the property whenever possible.
Exposure To More Prospects
Pricing the home properly will open your home up to more buyers who can afford it.
Better Response From Advertising
Buyer inquiry calls become showing appointments when the price is not a deterrent.
Higher Offers
When a property is priced right, buyers are much less likely to make a low offer, for fear of losing out on a great value.
More Money To Sellers
When a property is priced right, the excitement of the market produces a higher sales price in less time.Ā You put more money in your pocket due to the higher sales price and lower carrying costs.
DRAWBACKS TO OVERPRICINGā¦
Reduces Activity
Real Estate agents will not show the home if they feel it is priced too high.
Lower Advertising Response
Buyer excitement will be with other properties that offer better value.
Loss of Interested Buyers
The property will seem inferior in amenities to other properties in the same price range that are correctly priced.
Attracts The Wrong Prospects
Serious buyers will feel that they should be getting more for their money.
Helps The Competition
The higher price makes the others look like a good deal.
Eliminates Offers
A buyer might be reluctant to place an offer on a home that is over priced; they feel it might insult the seller, so they will move onto another property.
Cause Appraisal Problems
Appraisers must base their values on what comparable properties have sold for.
Less Money Goes In Your Pocket
Most of the time an overpriced property will eventually end up selling for less, than if it had been properly priced to begin withā¦not to mention the extra carrying costs.
Pricing Guidelines
- ā¢ What you paid for the property does not affect its value.
- ā¢ The amount of money you need to get out of the sale of your property does not affect its value.
- ā¢ What you think it should be worth does not affect its value.
The value of your property is determined by what a
READY, ABLE & WILLING BUYER will pay for it on the open market ā
Which will be based upon the value of other recent closed sales.
BUYERS DETERMINE VALUE!
DO NOT automatically list with the agent that gives you the highest priceā¦
As Consumer Reports stated:
āExpect the Real Estate agent to suggest a price range, but donāt let that frame you in.Ā Be aware that some agents will, at first, suggest a very handsome price.Ā Then, after they have the listing and the house hasnāt sold, theyāll come back with a pitch to lower the price.ā
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FACT
On the averageā¦ buyers inspect 12 homes before making an offer.Ā That means 11 other homes are competing against yours.Ā In todayās market, buyers are increasingly savvy.Ā Many sellers are āTesting the Marketā resulting in a high number of listings.Ā This means the competition is stiff.
- ā¢ Working together, we can make sure your home gets the attention it needs to stand out from the pack.
- ā¢ Your job is to make your home bright, shiny and clean ā as close to a āModelā home as possible.
- ā¢ My job is to āTell the Worldā and work to gain maximum market exposure.