Pricing your home properly is the most important decision you will make in listing your home for sale. Overpricing is the most common mistake that sellers make, and can be disastrous, especially in a market in which prices are decreasing.
See your home through a buyer’s eyes
Buyers are looking for a home that gives them a specific feeling, which can be related to layout, neighborhood, cleanliness, or how the home has been updated. The expensive tile entryway or whirlpool bath you’ve installed may mean more to you than to a prospective buyer. Don’t expect to recover all costs from amenities you’ve added. Some improvements will have more appeal and value than others. Take a step back, walk through your home as a prospective buyer might and be realistic about your home’s shortcomings. View your home as an investment and try and put your personal feelings aside.
View the Market Analysis with the proper perspective
All real estate agents prepare some kind of a market analysis when evaluating a listing price recommendation for a home. This information is invaluable, but should be viewed based upon market conditions. In the rapidly rising market we’ve seen over the last few years, it has been wise to pay more attention to the prices of available homes and pending sales to estimate value, as they would be more likely to show the current increases than properties sold. In a stable or declining market, the opposite is true, and properties actually sold will give you a much more valid estimate of your home’s value.
There are real estate agents that will attempt to “buy” your listing. That means that they will purposely give you an inflated estimated value for your home in order to obtain the listing. Once your home has been on the market for awhile without much activity, they will tell you that it is now necessary to reduce the price. In the meantime, the market could have slipped or your home will have become “stale” in the minds of other area realtors working with buyers.
NEVER choose a realtor by the “price” they say they can obtain. The key to selling your home is to price it properly based on an accurate market analysis and to expose it to the greatest amount of potential buyers in the shortest period, through proper marketing and having an agent who is motivated to get your home sold for the best possible price and terms! Any of us can agree to a listing price of your choosing.
The correct selling price of a home is the highest price the market will bear. To assist you in determining the correct asking price, we will provide you with a comprehensive market analysis of comparable properties that have been recently offered for sale in your neighborhood.
This analysis is based strictly on homes that can be considered similar to yours, and has been specially prepared for you over the last few days.
This ‘Comprehensive’ property analysis is divided into four categories:
- Similar properties that are currently listed
- Similar properties that have recently sold
- Similar properties that have sales pending
- Similar properties that failed to sell
By carefully studying the comparable property locations, features, and the terms under which they are offered, we can develop a clear picture of the potential market for your property.
By looking at the properties currently listed, we can see exactly what alternatives a serious buyer has to choose from. We can be certain that we are not under pricing the property.
By looking at similar properties recently sold, we can see what homeowners have actually received over the last few months. This is the acid test that is used by lending institutions to determine how much they will be willing to lend a buyer for your home.
While we naturally want top market value for the home, we can agree that there’s a point where the price would be too high. By looking at homes that didn’t sell, we can accurately determine that price point and be careful not to get too high. By doing our homework diligently, we can get maximum dollars in a reasonably short period of time.