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PRICING YOUR HOME RIGHT The biggest mistake that a seller can make when they place their home for sale on the Real Estate market is that they don’t price it right. This common mistake is often made because the seller listens to a friend or relative who professes to be an expert at selling homes instead of listening to the professional Realtor who they will be hiring. The Realtor has experience in the market and has up to date statistics regarding similar type homes in similar type settings. The friend or relative does not have access to the same information and is usually basing their price on perceived value that may be from a different locale. It is always interesting to hear the argument that “with your home on a lot that size in the King City area, where I live, it would sell for $60,000 more than the Realtor suggests.” Real Estate sales are based on location, style, condition and price. The location cannot be changed to the King City area, unless you own a mobile. The style of home is unchangeable unless you want to add an addition or a garage. The condition is a variable that can be changed somewhat inexpensively, with some paint, cleaning solutions and a bit of elbow grease, and possibly having a Home Stager come in for a consultation. The price is the easiest one to change. The Sales Representative that you hire will assist you with making an informed decision as to what would be a fair market value for your home, in consideration of the current market conditions. Make sure that you ask to see all of the sales that have taken place in the previous year, in the immediate neighbourhood that your home is in. The price you place on the home should be within 3% of the expected sale price. If it is priced higher than this there will be few showings and probably no offers. If your home is on the MLS system, it will get a lot of internet viewings by potential home buyers as well as Realtors that are dealing with these home buyers. If you have more than 10 showings and no offers, your home is priced too high for the location, style and condition of the home. It is time to reduce the price. A price reduction should be in increments of $10,000. If your home was originally priced at $279,900 a reduction to $273,900 is not going to create interest. Get it real and make it $269,900. You missed it when you first priced the home. If you are on the market for 30 days and there are no showings, it is not the sales person’s fault, but definitely the home is overpriced! Get it down quickly to a more acceptable value for the area. No showings are not because people don’t like the home, they don’t like the asking price. If there are homes selling in your area, you need to know at what price, so you can compete with them. Getting the price right at the start is the best bet for a smooth sale of your home. If the home goes on the market and you get several showings right away, and possibly an offer almost immediately, your sales representative has done a very good job of pricing your home and marketing it to potential buyers that are looking for this area, style, condition and especially price. Do not think that the home is underpriced, as there are usually some buyers that are waiting for well priced homes to become available. These buyers are well educated in value for the area that they want, and they will not look at overpriced listings. There are many instances where a home is priced slightly under the market value for the area, and the interest that is generated by the price brings in several potential buyers and a bidding war is started. This is good for a seller as they may end up with a slightly elevated sale price if there are 2 or more buyers competing for the purchase. In conclusion, don’t miss the price. A slightly overpriced home will be a lot harder to sell and most buyers are very educated as to market value for the area that the home is in. Price it right and you will be ready to move a lot quicker than those who don’t get the right price. Your buying power will be increased with the next home you are looking for, as you will not need to be conditional upon selling the one you just sold! Bill Forsyth, Sales Representative/Owner HomeLife Emerald Realty Ltd.
138 Mill St., Angus ON L0M 1B2
Office (705) 424-0770
Toll Free (800) 560-8756
bill@b4syth.com |
Request a Home Evaluation Today!
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The Right Selling Price Affects Your Bottom Line
When you’re selling your home, the price you set is a critical factor in the return you’ll receive. That’s why you need a professional evaluation from an experienced realtor. This person can provide you with an honest assessment of your home, based on several factors including: - Market conditions
- Condition of your home
- Repairs or improvements
- Time frame
In real estate terms, market value is the price at which a particular house, in its current condition, will sell within 30 to 90 days. If the price of your home is too high, several things could happen: - Limits buyers. Potential buyers may not view your home, because it would be out of their buying range.
- Limits showings. Other salespeople may be less reluctant to view your home.
- Used as leverage. Other realtors may use this home to sell against homes that are better priced.
- Extended stay on the market. When a home is on the market too long, it may be perceived as defective. Buyers may wonder, “what’s wrong,” or “why hasn’t this sold?”
- Lower price. An overpriced home, still on the market beyond the average selling time, could lead a lower selling price. To sell it, you will have to reduce the price, sometimes, several times. In the end, you’ll probably get less than if it had been properly priced at the start.
- Wasted time and energy. A bank appraisal is most often required to finance a home.
Realtors have known it for years – Well-kept homes, properly priced in the beginning always get you the fast sale for the best price! And that’s why you need a professional to assist you in the selling of your home.
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What is the most important to you in selling your home?
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