While I think the number 1 factor that means NOTHING in selling your home today is what you paid for it or what you owe on it, Valerie Zinger brings out some other "misconceptions" about SELLING your home.
IF you want to sell it, price it correctly. IF you don't know what correctly priced means, please call me. You might not like what I say the home is worth but I will tell you the truth. I don't need inventory, I need sales.
When you want to sell it, call me and I will help you price it to sell. My cell phone is 609-290-7962 and my email is NJHomes@hotmail.com
Thanks for reading.
Here are three ways NOT to set the price on your house:
1) Predetermined Return on Investment (ROI). For example, you decide that you must get a 20% ROI -the house you bought for $400,000 must go for $480,000 plus commission and other expenses. House prices may be dropping. What is the current economic situation and how are houses selling in your neighbourhood? If all the house prices are dropping, expect that your house price will drop as well. Buyers don't care about your investment (initial investment, equity and return strategies). Houses sales are not made based upon a Seller's ROI.
2) Return on Improvements. For example, you put on a new roof ($10,000) and installed 10 new windows ($10,000) so you want $20,000 above what other houses have been selling for in your neighbourhood. Buyers don't cares what you paid for maintenance and improvements, only that they don't have to do it. All that matters to the buyer is that the house is in good shape. House sales are not made based upon a Seller's Return on Improvements.
3) Return plus coverage of your outstanding mortgage and the real estate fees. For example, you owe $100,000 on the house and the real estate fees are going to be $20,000. You want your house to sell $120,000 above what you paid. No buyer cares what your mortgage is or how much you are paying in real estate commission. Everyone is paying off mortgages and paying commissions. House sales are not made on the basis of what a Seller owes.
You, the owner, can set any price you want for your home. Your agent, under fiduciary responsibilities, is required to obey your instructions and list the home at the price you instruct. However, you may never sell your house if the price is not what the market will pay. Listen to the advice of your REALTOR®. Look at comparisons, what is on the market now and what has sold and at what price. This is an indication of the state of the market.
Your selling price should not be a "feeling".
Photo credit: New Windows @ http://www.flickr.com/photos/pinkmoose/250056085/