Well, in less than 24 Hours it will be a New Year. It is speculated Nationwide what 2008 will bring to the Real Estate Market. I thought it would be appropriate to start the New Year with a New Series.
Contrary to Popular Belief-
I will focus on Common Misconceptions of many things related to Real Estate in General. The Market, Real Estate Agents, etc. I am starting with one debate that is HOT with many Buyers and Sellers. Who Actually Makes the Market Value?
As Real Estate Agents, we get the Tip of Arguments, Anger, Excitement, Happiness; we have the amazing role of working with folks during their emotional time of Buying and Selling. Sometimes Both at the same time.
I wanted to start with this one because it is almost January 1st. This, in Houston, is the time that many homeowners and families start deciding whether or not they will be moving this year. The Dream Begins.
When Selling a home, it is Vital to Price your home properly from the Beginning. The way you price your home will be one of the sole factors of how long your home is on the market and how many showings you get. Contrary to Popular Belief, the Agent does not make the Suggested List Price, nor the Sale Price. You, the Consumer do. I have made a couple of charts to help explain this.
The chart to the left is what I call a Pricing Timeline. To the left you have Price, on the bottom is Days on Market. They relate to each other almost as Husband and Wife. The lower you price your home according to your Area and Market Comparables, the quicker your home will sell.
As you go along, more Days on Market, the Price Rises. This line could go on indefinitely.
Now, where you price your home in comparison to your Market and Area Comparables is a different and not as easy story. There are many variables that start the pricing.
However, for example, Well Below Comps would be the 0 Days on Market and Well Above Comps would be 'And So On'. This is where your Local Real Estate Professional will come in to help you Price your Home.
The next question that comes up when Selling is "Well, the Buyer will want a lower price. So can't I price it Higher to Negotiate Down?"
Well, yes and no. When your Local Real Estate Professional does Comparables for you, we can tell how close to List Price homes Generally sell. My listings Generally sell within 98-99% of List Price. Until an offer comes in, Refer to the Chart Above.
The Chart to the Right is what I call the Balance between Buyers and Sellers. I also like to call it my Human Nature Chart.
When Selling anything we own, Human Nature makes us want Absolute Top Dollar for our object. In this case a house. That same Human Nature, when Buying, wants the Best Deal and Lowest Price Possible. There is Nothing wrong with that.
Because of this, you see that the Sellers line starts way up high, the Buyers line way down low. Where the line intersects is the 'Sweet Spot'. This is where the Buyer and Seller Actually agree on Price. This is the Dollar Amount that the Buyer And Seller, (You, The Consumer) agree on what a Fair Market Sale Price is for your Home.
Now, how much Higher than the 'Sweet Spot' can you price your home? Why will you not get as many showings at a Higher List Price? This will be the next in my Series. Contrary to Popular Belief, NO Marketing can SELL a GROSSLY Overpriced Home. When the Seller and Real Estate Professional work together as a TEAM, Your Home will sell for the Highest Price Possible in the Shortest Amount of Time. Together we can have Great Success in the Sale of your Home in 2008!
Until then, Feel Free to contact me if you have questions about Specific Pricing Strategies on Your Specific Home.
©All charts and content Copyright to Stephanie Edwards-Musa, The Woodlands TX Real Estate 2007
Stephanie Edwards-Musa
Prudential Gary Greene, Realtors (R)
9000 Forest Crossing
The Woodlands, TX 77381
Direct Line: 281-635-9444
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