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 Sellers Tool Box
The Right Selling Price
Pricing your home correctly is the most important part in obtaining a buyer. Think about this...when searching online for a home, people look at pictures first, price second. Once a potential buyer (or realtor) sees your home, and decides that it is overpriced, they probably won't notice a later change in price. They will scroll thru the listing, see the picture, and mentally determine that they looked at it before and it was priced too high.
If your home is priced too high initially, you will find yourself chasing the market. The initial price becomes associated with that picture of your home, and you may have to drop your price dramatically just to get attention. Pricing it right in the beginning is what results in a quick sale...hoping for the best, and dropping the price later is not a good plan, and will inevitably cost you money.
In the reports below, I provide some very compelling graphics, many provided by the Department of Housing and Urban Development, that demonstrates the importance of pricing. Well priced homes are selling...over priced homes are only helping the other guy. If you simply can't price your home "in the market," then you need to wait for the market to improve, or attempt a short sale.
The documents below are in pdf format. If you need the Adobe Reader, click here to download for free. You can right click on the link and select "Open in New Tab" to view/download in a new window. The information is also presented further down the page if you prefer to not open the document.
Docs:
Bullseye! On the mark with the right selling price.
Pricing Tips
Pricing Guidelines
More Pricing Tips
Document Information
Is Your Price on the Mark?
When a home is priced right and in good condition*, you could have the following:
• An offer after 10 showings
• Average 1-2 showings per week
The Best Market Time is the First Two Weeks!
*According to the National Association of Realtors
Pricing Tips
What You and I Control as a Team:
What We Control What We Do Not Control
�� Price �� Market
�� Property Condition �� Competition
�� Access for Showing �� Buyers, Sellers or Neutral
�� Home Warranty �� Interest Rates
�� When the Right Buyer Walks
Through the Door
Common Misconceptions In Pricing:
It is imperative to price your home at fair market value from the beginning of the listing. Often 80% of the effectiveness of marketing is linked to where you price your home. In addition, your first offer on your home is usually your best offer.
It's Not What Your Neighbor Says
It's Not What Another Agents Says
It's Not What You Want or Need
It's Not What You Paid
Buyers and Sellers Determine Value…Together!
The value of your property is determined by what a Buyer is willing to pay and a Seller is willing to sell for in today’s market. The buyers of today have all the information that you have. They will base their offer by comparing your property to other sold properties in your area. They will evaluate your home against the other’s comparing the cost verses the value.
Pricing Guidelines
What is your property worth?
• What you paid for your home doesn't affect its value!
• The amount of cash you need from the sale of your home doesn't affect its value!
• What you want for your home doesn't affect its value!
• What another real estate agent says your home is worth doesn't affect its value!
• What an appraiser says your home is worth doesn't affect its value!
• The price that your neighbor received for his/her property doesn't affect its value.
• What well meaning friends and family members think your home is worth doesn't affect its value.
The value of your home is determined by what a BUYER is willing to pay in TODAY'S MARKET, based on COMPARING your home to others currently on the market for sale.
Buyers always determine value!
Tips for Pricing Your Home
• Consider comparables. What have other homes in your neighborhood sold for recently? How do they compare to yours in terms of size, upkeep, and amenities?
• Consider competition. How many other houses are for sale in your area? Are you competing against new homes?
• Consider your contingencies. Do you have special concerns that would affect the price you’ll receive? For example, do you want to be able to move in four months?
• Get an appraisal. For a few hundred dollars, a qualified appraiser can give you an estimate of your home’s value. Be sure to ask for a market-value appraisal. To locate appraisers in your area, contact The Appraisal Institute (www.appraisalinstitute.org) or ask your REALTOR® for some recommendations.
• Ask a lender. Since most buyers will need a mortgage, it’s important that a home’s sale price be in line with a lender’s estimate of its value.
• Be accurate. Studies show that homes priced more than 3 percent over the correct price take longer to sell.
• Know what you’ll take. It’s critical to know what price you’ll accept before beginning a negotiation with a buyer.
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