Pricing your house accurately is the most important factor in making a successful sale. If you overprice the house, you will lose the initial appeal quickly. If you have price it too low, you're bound to receive multiple offers, driving the price up to market. However, any expert realtor will agree that it is important to set the right price from the start to ensure that you sell the home quickly and at the right price.
Pricing your house accurately is the most important factor in making a successful sale. If you overprice the house, you will lose the initial appeal quickly. If you have price it too low, you're bound to receive multiple offers, driving the price up to market. However, any expert realtor will agree that it is important to set the right price from the start to ensure that you sell the home quickly and at the right price. The right price ensures that:
- ➔ You open up to more prospects
- ➔ You face less inconvenience
- ➔ You receive higher offers
- ➔ You make a faster sale
- ➔ You achieve a higher net equity
The Problem With Over Pricing
When you overprice the home at the beginning with the aim to see if you can get your asking price, you will end up having to drop the price two or three times as it sits on the market for an extended period, while the right price may have resulted in a much quicker sale. Don't let an unrealistic price damper the sale!
Tips for Setting the Right Asking Price From the Outset
An unrealistic price can make it difficult to sell your home, while undermining your profit margin is a foolish move. Follow these tips to establish the right price and to attract the most suitable buyer.
- Know Why You're Selling
Why do you want to sell the home? If you need to make a deadline (for instance, if you need the proceeds due to financial issues, or to move to another city to accept a new job), you may have to set a slightly lower price to inspire a faster sale.
A more flexible time frame gives you time to try sell the home at a slightly higher price, and you can always reduce it after a number of weeks if doesn't sell right away.
- What's Your Home Worth to Buyers
How much is a home like yours worth to buyers? Ask your realtor to print out a market report to compare asking prices and sales prices of similar homes in your neighborhood. You can use this comparison to see whether sellers have been overpricing their homes. Note the correctly-priced homes, which have >5% difference between the asking price and the selling price.
- Objective Pricing
If house prices are falling steadily, you have to let go of a false sense of what your property is worth. You can test the waters using your ideal price, but this may prove counter-productive when you're trying to make a sale in the near future. Here's how you can calculate objectively:
- ❏ Multiply the average price per square foot from your data analysis by the average valuation.
- ❏ Add the value of any special features (oversized lot, granny flat or loft conversion, upgraded kitchen).
- ❏ Subtract the cost of repairs such as peeling paint, water heaters or air conditioning that need replacement and missing features, such as fewer bathrooms than comparable homes.
- Be Reasonable
What is your bottom-line final price? Decide beforehand what you constitute a reasonable offer; the lowest price you're prepared to accept. You can prepare yourself for price adjustments by setting benchmark dates on your calendar. If you have not achieved a sale at your set price by that date, you can lower the price. By being prepared, you can avoid emotional decisions and rather be decisive about it.
Price, condition and marketing are the three main reasons why homes don't sell. By pricing your home right, you will receive many potential buyers, which hopefully includes the right one at the right time.
Looking to sell your home? At the Claus Team we are prepared to show you the CORRECT price your home should be marketed at. Let us know how we can help!
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