the importance of proper pricing
- Faster sale and less inconvenience
- Exposure to more buyers
- Increased realtor response
- More advertising/sign calls
- Attracts higher offers
- Means more money to seller
- Avoids being "shopworn"
What really matters is how your home stacks up against the others currently offered for sale and recently sold in
your neighborhood. Buyers will be comparing.
common reasons for overpricing
Pricing your home is both an art and a science. Achieving the optimal price is the result both of objective research
into comparable properties and a gut feeling about your property and the current market. The right price should:
Try to avoid allowing your enthusiasm to impact your better judgment - overpricing is a common mistake that can cost you
in the end.
- Attract buyers
- Allow you to earn the most money possible
- Help you sell as quickly as possible
setting the list price
- Purchasing in higher priced area
- Original purchase price too high
- Lack factual data
- Bargaining room
- Move isn't necessary
- Assessed value
- Emotional attachment
- Opinion of family and neighbors
dangers of overpricing
- Most of the activity on your home will occur in the first few weeks. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical.
- Buyers who have seen most available homes in their price range are waiting for the "right house" to come on the market. That's why is a house is priced right, it will sell quickly. The buyers are there waiting for it.
- Don't start with a high price and the assumption that you can reduce it later. By the time you decide to lower the price, it may be too late, as interest will have already waned.
- Read more...
the role of a real estate agent in pricing
- Provide you with a comparative market analysis (CMA), a comparison of the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMA is performed by comparing previously sold homes in the area, and currently active homes to know your competition. Interested in receiving a market analysis on your home?
- There is no "exact price" for real estate
- I don't tell you what I think your home is "worth"
- The market determines value... together we determine the price
- You determine the price based on the factors you control:
- Marketing time
- Financing alternatives provided
- Exposure method
- Keep in touch with market trends and keep up to date with market activity of comparable homes
- Estimate your net proceeds
- Help to determine offering incentives
- An agent has NO control over the market, only the marketing plan. Never select an agent based on price.