Top 4 Factors to Price A Home to Sell in Silicon Valley
Do you know how you correctly position a home to sell quickly and at the best price in today's competitive market?
Bryan's advice is spot on, and is relevant no matter what market you are in.
And if you are not priced correctly you will know pretty quickly, because the market will tell you loud and clear - few showings, or lots of showings and no offers.
Why would you want to help sell your neighbor's house by over-pricing yours, and not being able to move on with your life.
Check out the video/Google+ Hangout on pricing, too!
Overpricing a home is a big mistake. There are four key factors a homeowner needs to consider when selling their property. Obviously, as a homeowner, your first priority is getting as much money as possible. While the ample information on the net would seem to be enough to make the decision, there's a lot more to it. Your REALTOR can best help you with these.
Factor 1 - Use Realistic Past Sales
The baseline for comparable sales are similar homes sold in the last 90 days. You may have to go back further but the more recent the better. A similar home means nearly identical home size, age, lot size, bedroom count, bathroom count, and overall quality. The homes should all be as close to your property as possible. Be realistic when making comparisons. A home built 2 years ago is not a good comp for a home remodeled 15 years ago, even if they look similar.
Factor 2 - Using Pending Sales and Avoid Active Listings
Using current listings and properties that recently went "pending sale" is more complicated. A home listed 10% more than yours with all other factors being the same doesn't mean you can price the same. If it isn't selling, it's probably priced too high. However, a higher priced home that went pending might be. Look at how long the home was on the market, how fast it sold, and what the last list price was. If a home goes pending quickly and the home is priced more than yours, you might have some upside on pricing.
Factor 3 - Consider Remodeled Homes and Off-Market Sales
Let's assume you remodeled your home, there are no recent sales of similarly remodeled homes in the area, but a neighbor did a similar remodel recently. Your agent can look at the tax records to see what the tax assessed value of that remodeled home was to use as a comparable. Tax assessors are often a little light on their valuations but it's still a useful data point.
Factor 4 - Don't Overprice Too Much for "Negotiation"
In almost every market the best price is right at the market value. Studies have shown that overpricing by as little as 10% means losing almost 90% of the possible buyers. If you want room for negotiation, look at the "list to sales price ratio" which will set the highest amount you could overprice. For example, if the ratio is 96%, you could overprice the house about 4% and still achieve market value in the sale.
When you're ready to list your home, call me to talk about an in-depth analysis to price your home to sell.
Take a look at the video below with real estate experts from across the country as they talk about the dangers of overpricing your home.
Dangers of Overpricing Video
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Bryan Robertson, Broker Associate | T: 650.799.9951 | Email: bryan@serenogroup.com | Website: http://www.BryanRobertsonHomes.com |CA License: 01191946 | Sereno Group - Los Altos branch | 369 S. San Antonio Road | Los Altos, CA 94022
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