Pricing your Louisville Home to Sell
"I won't take a dime less than $300,000."
"I put $50,000 into this house and I expect to get every penny of it back."
I imagine playing ball with Timmy in Waverly Hills Sanatorium would cause me less consternation than sitting across a kitchen table from a seller who just uttered those words. Hair-raising, spine-tingling, bowel-loosening horror is the closest description I can come up with. As a listing agent, my job is protect your interests while helping you achieve your goal of selling the house. This is generally accomplished by working WITH you to get the most possible money in the shortest amount of time. Exclamations like those above, indicate we are not only not on the same page, but also not reading from the same book.
Value - Capitalism Style
The value of any Louisville home is the price a willing buyer and willing seller agree upon. Buyers and their agents are educated. Buyers have access to automated CMAs, tax records, and other tools that can give them an indication of where your home should be priced. Agents have even more data as well as algorithms, market knowledge, and experience to draw upon. If either or both think your Louisville home is overpriced, they will not waste their time scheduling a tour.
Having your home sit, will cost you even more money. First, you continue to make mortgage payments every month. Much of that payment is interest that you will not recover in a sale. Second, properties that have been on the market a long time tend to become stigmatized. Even if you lower the price to market value, buyers think there must be something wrong with it. The end result, is you have to make as additional reduction.
If you really want to get the most money when selling your Louisville home, you will price it at or slightly (2-3%) above market value. This value is determined by analyzing active and sold homes in your area with similar square footage, features and amenities. Please note that what you want or need is not a factor in this equation. Although, the calculated price will hopefully cover both.
The best part of accurate pricing is the chance for a quick sale. Studies have proven that homes get the most activity within the first 6-8 weeks. When the price is right, buyers will want to see the home. Of course, the more buyers who show-up at your door, the higher the odds are you will get an offer.
So, as we sit down to talk about listing your home, the correct statement should be "I want to price my home at market value so it will sell and I can get on with my life." If you say this, I promise I'll have a huge smile on my face as soon as I get back up off the floor. I'll know you are serious and that together we will accomplish your goals.
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Erik Hitzelberger is a licensed REALTOR with RE/MAX Alliance in Louisville. If you need a Louisville Real Estate agent please email me or call 502.921.3989.
I specialize in the following areas of the Metro Louisville Area: Prospect, Middletown, Jeffersontown (J-Town), Fern Creek, Okolona, Shepherdsville, Mt Washington, Hillview, Brooks and Pewee Valley. Click the following links to learn more about Louisville and Bullitt County Real Estate or to Search for Louisville Homes
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