I write about PRICING all the time, and though this is a key point to selling a home, for a Realtor, knowing the days on the market (DOM) is CRITICAL to know how long it takes for a home to sell in their community. When I discuss with potential sellers about pricing their home strategically, this info gives a seller a realistic time frame on how long it can take Remember, in today's market, with all the competition out there, pricing the home within fair market value in mind will get you the showings and the offers.
I also advise my clients with pricing on the amount of negotiating that occurs in this kind of market; we have some very savvy buyers out there who are well-informed of the many like homes that have recently sold in your neighborhood. The listed price or asking price is not the accepted offer or sales price. When you receive an offer, knowing what the current sale/comparables in your neighborhood will give you the understanding of what fair value for the home, and will assist you in the negotiation process.
And then we have TERMS, ahhhh, the terms!
A buyer may come in with full asking price with one too many contingencies, such as the sale of their current home. The reality of their contingency is it just may not go anywhere, the buyers buyer may lose an income/job, or just back out, and you, THE SELLER, has put your home on hold for several months and it's a loss of time and money.
Then again, you might get an offer less than asking, but for CASH or no mortgage contingency, and the buyer can move ASAP. An offer like this could likely speak to you depending on your motivation to sell. Motivation and provocation of the seller is extremely important in the negotiations.
CONTIGENCIES:
A contingency is a clause in the offer and contract. Pertaining to the contract this gives either the buyer or seller a way to get out of the contract if certain conditions or timelines aren't met. A contract could be contingent on anything a buyer and seller agree to, but there are a few very common contingencies. Typical contingencies are:
· financing
· sale of home
· home inspection
· appraisal
.
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Sellers prefer offers that don't have too many contingencies, and the best terms. Contingencies, such as appraisal and home inspection, are quite common and meet with little resistance from sellers, though, keep in mind contingencies make or break deals, let you Realtor guide you in the negotiation process to figure out what is the best scenario for you, the seller.
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