Pricing - The Best Sales Price
When you decide to sell your property, you want to sell it for as high a price as the market will allow. Pricing too high will keep your home from selling. A low price will keep you from receiving full value.
Points to Consider When Pricing your Property:
Know the Market
The market determines value.
Price your home competitively based on the price of homes that have recently sold, are currently for sale, and those listings that have expired in your neighborhood.
Condition of your Home
Buyers base their decisions on the condition of the home as well as the price.
Take the time now to prepare your home to attract potential buyers.
The Benefits of Pricing Right
Your home sells faster.
Your home never loses its"marketability".
There is less inconvenience to you.
You will attract more potential buyers. A well priced home gets a better response from sign calls and advertising.
The closer the price is to market value, the higher the offers.
A well - priced property generates the excitement that produces higher sale prices. You net MORE money both in terms of actual sale price and in less carrying costs.
Factors that Influence Overpricing
Extensive renovations and hidden costs
Urgent need for money
Desire to purchase in a higher priced area
Original cost of home too high
Lack of real market information
Building in "bargaining room"
Perceived emotional value
Missing the Right Buyer
You may think that interested buyers "can always make an offer", but if the home is overpriced, potential buyers looking in a lower price range will never see it. Those who can afford a home at your asking price will soon recognize that they can get better value elsewhere. Remember, the wrong price attracts the wrong buyers. In fact, it may even help sell your neighbors home.
The Results of Overpricing
Many sellers believe that if they price their home high initially, they can always lower it later. Often when a home is priced too high, it experiences little activity. Gradually the price comes down to market value, but by that time it has been for sale too long and buyers are wary. On occasion, the price is dropped below market value because the seller runs out of time. The property sells for less than it is worth.
Early Activity is Important
As soon as a home comes on the market, there is a flurry of activity surrounding it. This is the crucial time when potential buyers sit up and take notice. If the home is overpriced, it doesn't take long for interested parties to lose interest. By the time the price drops, a majority of the buyers are lost.
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