PRICING YOUR PROPERTY

The single most important decision you will make with your realtor is determining the right asking price for your property. Once you've achieved a realistic price, you can count on your property being professionally marketed and promoted to bring more buyers to your door.

 

The Benefits of Pricing Right

 

   1. Your property sells faster because it is exposed to more qualified buyers.

   2. Your home doesn't lose its "marketability."

   3. The closer to market value, the higher the offers.

   4. A well-priced property can generate competing offers.

   5. Realtors will be enthusiastic about presenting your property to buyers.

 

What Affects Your Asking Price?

 

• Urgency. How quickly must you sell?
• Market Analysis. What did similar homes in the area sell for within the last six months?
• Competition. Are there just a few or many homes available in your price category and area?
• Available Financing. Does your home come with an assumable mortgage that is below today's rate? What are the current interest rates?
• Expenses. What are your selling costs?

 

 

What Doesn't Affect Your Asking Price?

 

• Original Cost. Your price is determined by today's market.
• The Cost to Build Your Home Today. A replacement value is determined for insurance purposes only.
• Personal Attachment. Buyer's purchase decision is based on his/her own emotions, not yours.
• Neighbour's Claims. Don't listen to what your neighbors tell you is the fair market value for your home.

 

What Happens to an Overpriced House?

 

• You'll Help Sell the Competition. "Correctly priced" homes look that much more attractive if yours is overpriced. Most buyers are competitive shoppers.
• Your Home Will Stay on the Market a Longer Time. Did you know that 80% of your potential buyers will see your house in the first four to six weeks? If you don't “sell” them then, it takes approximately three months to replace them with an equal number of newcomers.
• You'll Lose Market Interest and Qualified Buyers. Serious buyers use the value, quality and price of similar properties as deciding factors.
• A Negative Impression is Created. People will wonder why your house is still on the market - they'll believe something is wrong with your home.
• You, as Seller, Would Lose Money. You may have to make extra mortgage payments as well as incur taxes, insurance and unplanned maintenance costs.
• You, as Seller, May Have to Accept Less Money. Studies show that the longer a house is on the market, the greater the discount off the list price. Often a seller will accept less than fair market value in order to sell because of an approaching deadline.
• There is the Potential for Appraisal Problems. The appraiser from your buyer's lending institution must agree that the home is worth the asking price. If the appraiser believes the price is inflated, the requested mortgage amount may not be approved.

 

Find Out What Your Home Is Worth

 

For a current market analysis of your home please take advantage of a Free Home Evaluation.

 

Want to know more?

 

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