If you’re putting your home on the market, especially if
you live in an area where home prices have been going
up and buyers are competing for homes, you may be
tempted to try listing it at a high price just to see if you
can get it.
Don’t do it.
Pricing your home appropriately from the beginning is
critical to getting it sold quickly and at the best price.
Research shows that overpricing your home and then dropping the price several times while it languishes on the market usually leads to selling it at a much lower price than what you originally should have asked for it. The longer a home stays on the market, the deeper the discount is likely to be off the original price.
Many homeowners want to set their list price based on what they paid for their home, the balance of their mortgage, or on the profit they want to make so they can move into another home. In reality, your home is worth only what the market will bear. If you price your home too high, some potential buyers won’t want to look at it at all, while others will simply walk away without making an offer.
If you decide to interview more than one agent before hiring someone to represent your best interests, be careful: you may find yourself tempted to select the person who suggests the highest price for your property. However, the person you should be listening to is the Realtor who provides the best comparative market analysis (CMA) and explanation of how your home should be priced relative to past and current sales.
The CMA that I provide for you will include:
Sales prices for similar nearby homes that sold, ideally, within the past three months. ("Similar" is sometimes difficult to find, depending on your type of home and its location.)
Similar homes that are currently available for sale, since these are your competitors.
Properties that have recently failed to sell.
The average number of days that homes were actively on the market.
The average difference between "List" price and "Sold" price for homes that have sold.
The "Absorption Rate" - an indicator of how long it may take for the current inventory (your competition) to sell, and whether the current climate is a "Buyers' market" or a "Sellers' market."
Most importantly, I'll help you to define your priorities so that we market and sell your property in such a way as to best achieve your desired goals and terms.