ESTABLISHING A PROPER PRICE
No matter how attractive and polished your house may be, buyers will be comparing its price with everything else on the market. Your best guide is a record of what buyers have been willing to pay in the past few months for properties comparable to yours in your area.
Improper pricing is the most common mistake that costs home sellers thousands of dollars. It’s simple. Overpriced homes are not as competitive as those that are well priced. In most cases, the higher the asking price, the longer it takes for the home to sell (and in many cases, the lower the final selling price). On the other hand, price it too low and you may give away thousands in profits to a total stranger.
The value of a home is determined by supply and demand. If there are a lot of sellers and few buyers, prices tend to go down and homes take longer to sell. This is referred to as a Buyer’s Market. When the opposite is true, and there are many buyers but few homes for sale, prices will rise and homes will sell quickly. This is a Seller’s Market.
Proper pricing sets the stage for the entire selling process. Be objective and remember that selling your home is a business transaction. Keep in mind that potential buyers are not looking to buy your home – they are looking to find a house that they can make their home.
Is your price on target?
Drive-ups only. 12% + off
Drive-ups & low # of showings 6-12% off
Showings but no offers. 4-6% off
Offers = The right price!