Establishing the right price for your home is one of the most important reasons why a house will or will not sell quickly. In my experience, some sellers put too much attention on the price of the home and do not really factor in the condition of the home itself, the location, or the current market situation.
If your home is located in a high demand neighbourhood, there is no question that often times, you will be able to get a higher price for your home than a comparable home in a less desirable neighbourhood.
How does your home show?
A home that has been better maintained, with amenities that are popular such as updated kitchens, and baths will bring a higher price from potential buyers. If you happen to be selling a luxury home, there are certain things that buyers will automatically expect. If your luxury home is lacking some of the features you need to understand that this can have an impact on the sale price of your home.
As a starting place, a detailed comparative market analysis of comparable homes, normally in the last 12 months, can impact the sale price. The comprehensive report often referred to as a (CMA) will help provide an accurate report on the value of your home before listing it for sale. If however, the market conditions have changed, the probable sale price will more than likely change.
Different locations can they impact price?
There is such a thing as a neighbourhood dividing line and even some physical barriers such as roads, hydro lines, and views which can cause variations in the price. Two homes on the same street can vary significantly.
Market Conditions impact pricing or do they?
One of the biggest factors that can impact the sale price of a home is what the current market conditions are when you are thinking of selling and or buying. There are generally three different types of markets that impact the sale price.
In a sellers’ market, you might want to increase your price to reflect what is happening around you. There is often very little inventory to choose and there are lots of ready and willing potential home buyers in the market and not enough homes to meet the demand.
In a buyers’ market, your list price may allow for some room for negotiation to entice buyers to your home, since there are lots of homes for sale and not enough buyers wanting to purchase a home.
In a balanced or neutral real estate market, there is a good mix of home sellers and potential buyers. Since they are evenly matched, pricing can be very straightforward.
Setting the value of your home is the most contentious part of selling, but with the right realtor, armed with the right information it does not have to be. As a seller, you will want to set the highest price the market will bear so you are rewarded for the years of hard work and love you have put into the home, while as a buyer you will want the home with the highest future profitability for the lowest price.
Experienced real estate agents will advise you to price your home properly from the beginning. Research indicates that overpricing a home and then dropping the price several times because you did not get an offer, usually results in selling at a much lower price than you originally anticipated. Also remember the longer a home stays on the market, the deeper the discount the buyer will expect off the original asking price.