Special offer

If You List It They Will Come-Pricing Your Home To Sell

By
Real Estate Agent with Integrity Real Estate Group

Buyers in the Northern Virginia market are looking for a good deal.  They won't buy a house that is overpriced no matter how you try to entice them. Forget the free lease on a Mercedes or cruise to the Bahamas those aren't going to bring any offers to the table.  Price your home right and offer the right incentives (closing cost assistance) and you may be on the short list.

Man with Contract
Just as in Part I of If You List It They Will Come don't be swayed by the agent who comes in the door and tells you the highest listing price for your home and asks you to immediately sign a listing agreement.  Every agent you interview has to be able to back up what they say with detailed information.  Check it carefully and make sure they can justify the price they are suggesting.  If not show them the door!

 

Man with Crystal Ball



So how do you determine the right price?
  Forget the crystal ball.  The most accurate way is by having a professional appraisal of your property done.  Most sellers don't go to the expensive of having an appraisal done on the property when they first put it on the market instead they rely on a Realtor® to help them come up with the correct price.  In a market where prices have declined you should start with the most recent sales in your neighborhood and then work back only as far as you need to find a baseline price.

Why do I say baseline price?  It has nothing to do with the price you will list your home for but instead a baseline for you and your Realtor to begin making the necessary adjustments to come up with the list price of your home.


Down ArrowDid the last sale in your neighborhood have granite counters and you don't?  Adjust your price downward.


Up ArrowDoes your home have a finished walk-out basement and the last sale didn't?  Adjust your price upwards.

 

Down ArrowDo you only have three bedrooms above ground and the neighbor has four?  Adjust your price downward.  But wait I have a legal bedroom in the basement doesn't that count?  Yes, but not the same value in an appraisal as the one above grade.

Now you and your agent need to take a look at what is currently for sale.  How long has it been on the market, have they lowered their price since listed, what are the features of the current listings as compared to yours?  A good Realtor® will have already scoped out the competition before they came to your house and I always recommend to my potential sellers that we make a quick tour of a few of the listings to talk about the pros and cons.

Armed with all of this information and a few intangibles that your Realtor® can talk to you about you can set your listing price.  The first time a buyer walks in the door is when you are going to capture them for a return visit and a future offer.  The first 10 days your home is on the market are the most critical.  If your home is overpriced buyers and their agents will know it and pass you by.  Price it to low and the will also wonder what the problem is.  Price is right and they will come! 

Stay Tuned for Part III-Marketing Your Home For All It's Worth


Related Posts on Selling Your Nothern Virginia Home
The Price is Right
Pricing Your Home to Sell in Today's Market
Help my House Isn't Selling
Will This Effect the Resale Value of My Home?

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As an Associate Broker with RE/MAX Allegiance in Northern Virginia and native of the area I can assist you whether you are buying, selling or renting a home anywhere in Northern Virginia. For more information about the area or my services you can check VaRealEstateTalk or my Northern Virginia website.

Search all homes available in the Northern Virginia area.

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                                   Real People*Real Lives*Real Estate

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and Integrity Real Estate Group a call at 703-346-2213.

Military Relocation Specialist serving military families relocating to and from the Pentagon, Fort Belvoir, Quantico MCB and all of the Military District of Washington installations. 

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Check out www.varealestatetalk.com and www.cjrealtygroup.com for more information.

Integrity Real Estate Group
 
Real People*Real Life*Real Estate

Licensed in the Commonwealth of Virginia



 

 

Comments(18)

Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Eighteen Years Experience in Brevard County
Good post...bottom line - Price it right and they will come. Well said!
Feb 10, 2008 12:01 AM
Gary McAdams
GMAC Schwartz Property Sales - Key West, FL
Great posting.  I wish the residents of The Florida Keys would take that advice.  They still think it will sell for millions because we are on an island.  That was the case 3 years ago but the times they are a changing.
Feb 10, 2008 12:07 AM
Robert Huntsinger
Empire Realty - Upland, CA
Empire Realty Upland, CA - Full Service at a Discount

Pricing is even more important in a declining market, if the seller wants to move their home they need to be very aggresive in pricing.

Take care!

RJH

Feb 10, 2008 12:10 AM
Scott Wall
StoneHouse Realty, Inc - Bristow, VA
Folkd need to take the market trend into the equation.  Basew the price on what has SOLD with a +/- on the trend.  If the sold properties were a few months back, well the snapshot you are using is a few months old. Stay ahead of the trend or your price will cause the seller to have to wait longer.
Feb 10, 2008 12:12 AM
Kevin McGrath
Long & Foster Real Estate Companies- Fredericksburg/Spotsylvania - Fredericksburg, VA
Long & Foster Real Estate Companies
I agree about the 10 day rule. If you don't have any activity it that first 10 days, it is probably not priced right. I get a lot of sellers who say "but my house is so much nicer/in better shape." My answer - if a tree falls in the woods and no one is there to see it, does it make a sound? If your house is nicer but no one sees it, does it really matter?
Feb 10, 2008 12:13 AM
DDR Realty
DDR Realty - Newburgh, NY
Orange County NY

Good post. Any home which is priced right "for the conditions" will draw activity.

Feb 10, 2008 12:27 AM
Renee Parker
Coldwell Banker Hubbell BriarWood - Lansing, MI
Lansing Realtor
Cindy ~ This is such a good post.  We don't do sellers any service by pricing it too high, even if they think it should be.  You made a lot of good points.  
Feb 10, 2008 02:02 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
Gary W-our  market is not one where overpricing a listing is going to get the home sold.
Feb 10, 2008 08:54 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
Gary McAdams-perhaps it is the HGTV Dream House that makes them think that all the prices in the Keys are in the multi-million range.
Feb 10, 2008 08:56 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
Robert-you have a much better chance of getting a contract sooner than later if you price it right.
Feb 10, 2008 08:58 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
Scott-following the market down is not a good trend.  Price reductions only make the buyers want to go for the jugular.
Feb 10, 2008 09:02 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
Kevin-nice response.  Most sellers think there place is nicer than the one next door.  That is why I encourage my sellers to come on tour with me so they can honestly compare.
Feb 10, 2008 09:05 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
Derrick-my latest listing went under contract in 2 weeks and we had loads of traffic.  It had been previously listed 50K higher without one potential buyer in over 2 months.  Sometimes sellers just have to be gently lead to market reality.
Feb 10, 2008 09:07 AM
James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes
Real Living | At Home - Washington, DC
When Looking to Buy or Sell - Make the Right Move

It truly is about Pricing correctly.  Homes DO sell and fairly quickly - IF they are priced to sell.  Too often people thinks the term "Priced to Sell" means "giving it away".  We need to change it to "Priced at Current Market Value"!

Everything sells - at the right price!

Feb 11, 2008 03:12 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
James-very true.  Price, condition and location are the winning trifecta in our current market.
Feb 11, 2008 08:23 AM
Julie Neerings~Lifting Hearts ♥ Building Dreams~
Agent Referral - Salt Lake City, UT
Cindy~You are right on target with this post and pricing the right is key to the success of the home selling in a timely manner. 
Feb 11, 2008 02:14 PM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
Julie-I'm going into round three with a new home builder right now who seems to be the only one who hasn't heard that it is a buyers market.  SIGH!
Feb 12, 2008 09:23 AM
Billnulls Blog Florida Realty Professional
Charles Rutenberg Realty - Clearwater, FL
AHWD
Cindy - Proper pricing and proper advertising will sell anything - it is a matter of knowing how to market!
Feb 13, 2008 02:58 AM