The number one mistake made by sellers is pricing their homes to high for the market.  This is the number one mistake by FSBO sellers too.

Everyone including me thinks our home is worth what we paid for the home and then look at all the things we have added.  The truth is in Michigan in our market we have seen declining values in the marketplace. 

The state equalized value to protect us from rising taxes has also stopped or slowed our Michigan home values from dropping further, on paper, than what sales dictate.  The reason I say on paper....how many of you have heard the phase,  "it isn't worth the paper it is written on"?  Well in this case your taxable value and the real value of your home can be much different and to believe your tax bill as to true value of your home is just a feel good document.  It really has nothing to do with your value other than to give you some guidance toward value.

So when you set the sell price of your home how do you do it?  We have several ways to work together to get your home sold but the price is by far the number one issue.  So focusing on price alone is all we are going to do.

1. Price, is the number one motivator to get buyers to act.  I did not say you have to be the lowest priced home.  If you were you would sell first!  Other factors below impact price as well.  But price dictates showings.  Price dictates offers.  Price dictates time on market, how long it will take to sell your home.  Pricing your home correct is the primary element to selling faster for more money!
2. Location, this can be a plus, minus or neutral factor.  If your location is in the "hot zone" great schools, close to shopping at the newest or best mall, expressway system or "the place to live" according to the most recent sales statistics it could mean more selling dollars.  So Location is part of the sell price equation.
3. Condition, if you homes maintenance has been kept up to date and there is nothing to do your value is going to be higher than the same home that has to be painted, or needs landscaping, a roof, furnace or hot water heater.  So condition is part of the sell price equation too. 
4. Marketing, letting buyers know your property is for sale is listed last on the list because without evaluating the first three items and setting the sell price right all the marketing in the world will not sell your property.

So what can you do if your home or property is not selling?  Look at the market and the competitive homes or properties that you are selling against.  Look at the market as though it was your first day of selling.  Your first time setting your sell price.  Be objective like you are the buyer.  Look at what has sold.  Look at what is pending and look at your property and the others comparable to yours and see how they stack up with Price, Location, Condition and Marketing. 

Make sure you really want to sell.  If your attitude is this is my price and if someone offers me "my" price I'll sell.  You could be in for a long listing and selling time frame!  Most Realtors will not want to spend advertising dollars on a property that is priced to high and/or waiting for "Your" price.  Why should they?  Would you if you were in business?  Remember real estate is a business.  How real estate businesses prosper is by selling property.  The reason you call them or use a selling service is because you think they can help you sell your property.  So restricting the possibility of selling by pricing to high is going to limit your marketing to only those less experience who are hoping you will change your mind.  The more experience Realtors will tell you straight away your price is to high.  The other thing we do is tell you the truth! 

Don't look at your sale from a seller perspective.  Look at it from a buyer perspective.  Review your competition even tour the competitive properties if you have questions or doubts.  Then set your sell price competitively within your market.  Competitively priced homes and properties sell faster and for more money.  How do they sell for more money?  Simple they don't have to go through price reductions to get to the right price to attract buyers.  The other higher priced properties have dropped too which mean you have to go lower than you would have if you priced correctly in the beginning.

Hope this helps you understand the pricing concepts.

If you live in Michigan and are not listed or your listing has expired and you still want to sell give us a call.  We will help you sell.  We have 5 locations around Michigan to serve you. 

Call Toll Free: 877-667-4699
Email: GaryWhite@grar.com

Visit our web site www.FlexItRealty.com to review over 30 "Free Reports" that could save you thousands of dollars in your next real estate transaction.