There is no absolute science when it comes to pricing a home. Every
home is unique, and each and every point of your home must be considered
in establishing an exact price. Consideration must also be given for
items such as commutes and distances to schools, retail areas, etc.
is important to be aware of the condition of your existing market,
remembering that Market Value may not reflect replacement cost or
even appraised value. Current listings, pending transactions, and
recent sales within your geographical area must be analyzed to determine
the right price for your home. A detailed inspection of the property
must be completed as well, allowing an agent to develop a target market
for your home that, together with the right price, will generate the
optimal number of prospects.
We will communicate with you throughout the time your home is on
the market, to help you understand what is happening with the market
so that you can make the decisions that will help you realize your
real estate goals as quickly as possible.
Although we will do everything we can to sell your home quickly,
at the best price, and with no hassles, the one thing we cannot control
or change is the market. Even though we know how valuable your home
is, the value of your home from a selling standpoint will be determined
solely by the buyers. Therefore, we have generated the following "Rules
of Thumbs" to help give you better knowledge of whether or not your
home is priced correctly.
If you are getting showings but no one is writing an offer, it generally
means that you are in the range of four to six percent above market
If your number of showings is low and you're experiencing a lot of
drive-ups but the buyers don't come in to see the home, then your
home is between six and twelve percent overpriced.
If no showings are happening at all, then your house is likely priced
twelve percent or more above what the market will bear for your property.
Remember overpricing will:
- Help your competition sell their homes.
- Reduce sales-associate
- Reduce advertising response.
- Sends interested buyers
to other properties.
- Attract the wrong prospects.
- Eliminate offers.
- Potentially cause appraisal problems.
- Extend market time.
the Home to become shopworn.
- Cut down on agent showings
Buyers to assume there is something wrong with it, or it would have
- Encourage lower offers.
- Buyer will assume your home
is out of their price range and will not look at it.
1. Serious buyers look in the price range determined by their down
payment and monthly payment ability. Unless your property is priced
correctly, the down payment and monthly payment requirements will
not be competitive.
2. A buyer who is seriously looking will soon become very knowledgeable
in his or her price range. An unreasonable asking price only discourages
the buyer from looking at and considering your property.
3. Buyers purchase by comparison and a property that is priced above
the competition does not compare favorably. Inviting a buyer to make
an offer can indicate that a fair price has not been established.
4. If you plan to adjust your price at the time of sale, it is better
to adjust the price now and attract serious buyers from the beginning.
This often places you in the favorable position of having more than
one buyer interested in your property.
PRICE IT RIGHT THE FIRST TIME AND YOU CAN GET ON WITH YOUR