A KING'S RANSOM?
Why The MARKET (Not Sellers) Determines The Sales Price Of Your Home
It's no secret, pricing a home in today's market can be difficult. Despite what some home sellers believe—that their "castle" is worth more than recent comparable sales in their area—homebuyers are the driving force in determining the true value of homes.
Pricing a home higher than advised to "test the market" often proves a waste of a seller's time—and of buyers' time too. Smart homebuyers comparison shop to learn the local real estate scene, and will offer only what the home is worth today—not what other homes sold for a few months ago, not what the seller paid for it years ago and not the combined prices of all the upgrades and improvements made to the property.
A realistic price—sometimes slightly lower than the competition—attracts buyer activity right from the first moment your home hits the market. The more interest in your home, the more opportunities for offers. The positive energy from early activity today is likely to put your home in demand—and can create multiple offers and a quick sale.
Remember, the converse is also true—a too-high price can turn your attractive home into a white elephant. More and more buyers in this market will pass on an overpriced home because they know they can get more for their money elsewhere. The longer your overpriced home stays on the market unsold, the more likely it is buyers will start suspecting something more is wrong with it beyond just the price. In today's market, the old maxim is more true than ever: Price sells!
Throw out those old calculations and numbers and sit down to face the reality of our local market today. As real estate professionals, we can help you see where home prices are right now, learn what buyers are purchasing and offering for similar homes in our area and suggest a price point that will get your home sold quickly. Here are several more tips to maximize market value.
If you are a seller who bought at the peak of the market and now needs or wants to sell, being understanding is the name of the game. In many cases, you may not be able to sell your home for the same price at which you purchased it. Stand back from those numbers and realize you have had a number of good years in your home, living there and enjoying it, making it your own. Now it's time to move on to your next stage in life. To get there, your home must be sold for whatever buyers determine it is currently worth—which may not be what you paid for it.
Make It A StealIf you are ready to sell and your house is in great condition, aggressive pricing will get your home sold quickly. Look at your competitors, and then consider pricing your home slightly under them. When your home is crowned with that "for sale" sign, interest will be highest as buyers see the true deal they have before them. Buyers will view your home as not just a good deal or a bargain, but a steal! A bidding war may even ensue, bringing your home's final selling price up in the process.
Super StagingHome staging—making your home look inviting and picture perfect—is effective in getting your home sold. It's hard erasing your personal touches from your home, but it's needed if you want buyers to see your home as if it were a royal palace. Great staging makes it easy for buyers to picture themselves living, relaxing and entertaining in your home—as well as owning it! Hiring a professional home stager is often well worth the money as a stager's work will encourage buyers to linger and like your home enough to make an offer. With the right price and right look, your home is as good as sold!
Walk In Buyers' ShoesIf you're looking to really understand where to position your home, step back and be as critical as a potential homebuyer. Analyze what the flaws are in your home—that to this day still bother you—and remedy them. If you can't fix the problems, such as location, needed major remodeling or items that are still not updated or fixed, adjust your asking price accordingly. We will guide you.
Serious About SellingIf you are ready to sell your home, be sure to price it right from the beginning. Waiting for multiple price reductions to finally hit the correct market price can cost you time, money—and many lost buyers. If you have a home for sale that is not garnering any interest, let alone offers, slashing the price significantly is more effective than small, incremental drops. A home that drops its price by 10% to 20% will be seen by a new buyer pool searching in that different price range—where buyers will actually consider it.
Look For GuidanceIn today's market, it's imperative to have a professional alongside you when you sell your home. We can help you determine the best price to make your home sell quickly so you can move on. We know our local market, what buyers are looking for—and at what price points—and what makes homes sell today.