For a variety of reasons, at some point, most people decide that the time is right to sell their home. Since, for most, the value of this home is their single biggest financial asset. or one of them, it would not make sense, at this point, you are more aware of some real estate realities, and you proceed, with better knowledge, to a variety of relevant factors, especially pricing decisions. The way one values your home, from the start, often has significant ramifications! Wouldn’t it make sense, to better understand as many relevant factors as possible, in order to avoid the tendency to either overvalue, undervalue, or list your home just right? With that in mind, this article will attempt to review, consider, examine, and discuss what this means and why it is important.
1. Price too high: One of the age-old challenges is the conflict between what a homeowner believes their property is worth and what qualified potential buyers believe and/or are willing to pay. When a seller overprices his house, he takes a risk, obtaining the best possible results, since, in the vast majority of cases, the best offers are received, within the first weeks, after a house is listed, on the real estate market. Whether out of greed, optimism, wishing/wishful thinking, or not realizing a quote for a sales price are very different entities, this approach rarely works. In general, there is a lot of competition and for which lenders, do they appraise properties and unless they line up, few houses sell!
2. Price too low: The risk of putting a house up for sale, too low, is putting off some potential buyers, because they feel/believe that there must be something wrong, if it’s being offered, so it’s cheap! There’s a fine line between offering something, at the low end of the market, versus, significantly below that point!
3. Fair price – right!: The list price, for which a home is initially offered, should depend on the existing local real estate market. As this varies, from region to region, state to state and neighborhood to neighborhood, and sometimes even depending on the specific block, and location on the block (corner, mid-block, adjoining properties, etc.) .), one should hire a qualified real estate agent, to serve and represent them, and their best interests! The price range should be determined, having a professionally prepared Competitive Market Analysis, or CMA, guide the process. An owner’s unique needs and personal situation are significant factors in determining where, in that range, the best listing price is found.
Obviously, the best way and approach to price your home for sale depends on a variety of factors, conditions, needs, and priorities. However, when the initial listing price is just right, rather than too high or too low, your results will generally be better!