Pricing Your Home Right to Sell More Quickly

While it is only natural to want to sell your house for the highest price possible, many home sellers are finding that their homes languish on the market for months for one simple reason – the price they set is simply too high.  In a somewhat challenging market, in which there are numerous homes for buyers to choose from, in many cases the final decision comes down to the price of the home. Despite the softening conditions of the real estate markets, real estate agents across the nation have begun to report that homes are still selling within 120 days and for at least close to full asking price if they are priced right when they first come onto the market. Along the same lines, homes that are overpriced take far longer to sell. These homes sit on the market, causing endless amounts of frustration for sellers and agents alike.  If correct pricing is the key to moving a home quickly off the market, and for close to asking price, then what exactly determines the ‘right’ price? While it may seem complicated to determine a price that will garner a buyer’s attention, it’s really not that difficult at all. First, the price you set for your home must be realistic. Gone are the days when the market could bear prices that were somewhat over inflated. Buyers today have more of a choice and they know it. Serious buyers are still out there but now they are expecting a fair price. The first step in pricing your property is to carefully listen to your Realtor’s advice. If you do not really trust us in the pricing and the marketing of your home, this can spell serious trouble. Keep in mind that while you naturally think your home is virtually priceless, we know the market. It is our job to study market conditions. We sell homes on a routine basis. In addition, we can provide a much needed objective third opinion that is non-biased. When your agent comes back with a suggested price that is below what you had in mind for your property, remember that it’s not personal. After all, it’s their job to provide you with a realistic, honest answer. While the truth about your home can hurt, in the current market, sellers cannot often afford to harbor any illusions regarding the true worth of their home. Agents who tend to move the most properties in the shortest amount of time are those agents who are willing to be honest about your home’s place in the current market rather than humoring you. Recently_Overpriced_HomeUnfortunately, some sellers have the tendency to insist on listing their home at a price stuck in their minds ‘just to see.’ This can be a huge mistake. Overpricing your home in the beginning, even if it is just for a short period of time, can be disastrous. Homes that are overpriced, quite frankly, sit on the market. Serious buyers  may pass over them without ever seeing the potential your home has to offer. Within a very short period of time your home will become what is known as a ‘stale’ listing and even if you lower the price later it can be very difficult to overcome the damage that was done in the initial listing period. Once a listing has gone stale it is almost impossible to regain the initial enthusiasm that was available during the first weeks of the listing.  So, what should be taken into consideration when pricing your home? Several factors can affect the real market value of your home. The current market can have a tremendous impact on the value of your home. Keep in mind that the market is ever changing. Regardless of what the market was like a year ago, or even six months ago, you must understand how the market is performing at the time you list your home. A well versed agent will consider current real estate statistics to determine the current value of your home. Other factors that can affect the pricing of your home include location. Regardless of the actual value of your home, where it’s located can seriously impact the final selling price. Remember the old real estate adage; location, location, location. Competition can also play a role in the final selling price. Unlike in the past, today’s prospective buyers are quite educated. With the Internet, they have almost as much access to sales information and other homes on the market as your agent. Therefore, it’s important to make sure you are in the loop as well. In today’s market, you can’t wait for buyers to come to you; to be successful in selling your home you will need to take proactive steps to compete for serious buyers. Find out what you’re up against by researching the market on your home. Take the time to find out what other homes in the neighborhood are selling in the same price range as your home. Ask yourself where your home falls and what you can do to make your home stand out more in the crowd. Finally, understand the importance of the time test in the real estate industry. If your home hasn’t received any attention in the first 30 days on the market, this typically means something is not right. Generally, it’s the price. Don’t wait to change your marketing strategy and lower the price. You may be quite surprised at the attention your home suddenly gets from serious buyers when you make sure the price is right!   Written by Stephanie Prine with Noon & Associates Real Estate, LLC Stephanie Prine