Pricing your Home Correctly In a Competitive Market
Spring is soon upon us. There is going to be many people testing the waters to sell their house either out of necessity or because they believe that the market is ripe for making a good profit. Here are some "Bites" to Pricing your house in a competitive market.
1. Do not confuse active listings with past sales. Active listings have not sold. They are just your competition. It is important to be aware of your competition's pricing, but this is often just an indication of what your home won't sell for.
2. Do not overprice because you have "time." If the market is appreciating, this strategy may work, but if prices in your area are declining, you may quickly find yourself chasing a market and costing yourself money. And if the market is stable? Your home will just sit. Buyers pay in today's dollars, and time is rarely on your side.
3. Leave some room for negotiation, but don't overreach. No seller wants to feel he left money on the table, and no buyer wants to overpay. Your price should give both parties room to maneuver, but if it is too high, you risk being perceived as unrealistic, and buyers will pass over your home.
6. Think like a buyer. What are the things that you value in a home? Is it a large yard, an updated kitchen or a view? These are likely the same things that your buyer values as well. Talk to your agent about current buyer trends. Yesterday's avocado green shag carpeting is today's granite counter top. Buyers will find objections to any home, as none is perfect, but it is curious how quickly objections disappear when the price is compelling.
7. React swiftly and decisively. If your home is on the market and is not being shown or if you receive feedback that you are priced too aggressively, don't hesitate to adjust your price. Bad news, like spoiled milk, doesn't get better with time.
These "Bites" should be followed. If you are deviating from these tips, you should be asking yourself are you being realistic and the reasons why? Many times when selling your home sellers become greedy and overlook many factors about their property. They are very emotional and believe their memories and hard work of Maintenance should be paid by the buyer. The question is would you pay for that? I don't think so.