Pricing correctly is the most important thing to get your house sold in today's market. There are a lot of factors that you must consider to get your home priced right. It is not only price per square foot for the area but location, condition, and the age of your home are also important.

OK, you have set your price and of course sellers want the most for their property the market will bear but buyers are pushing the market price downward because they are looking for the best deal in the area.  Constant updates to prices may be necessary in a sifting market. The average days on market are important but sellers should also look at area absorption rate. Absorption rate can give a seller some clues to where the market is heading.

Common misconceptions on pricing can keep a seller from selling as quickly as they need. The most common statement  I hear is, "Well, I will price my house at the higher price now and if an interested buyer can just bring me an offer and I will go down then." The reality is this will not happen. Buyers will view houses that are priced correctly first and if they do view your house, which is unlikely, they will use your house to compare to other homes on the market to confirm that they are getting a great price on your neighbor's house.   

Another misconception I hear frequently is, "I will price high now because if I don't sell I can always lower my price later." There is the most interest in your home the first few weeks it is on the market. When your home goes past those first few weeks interest quickly declines. The first few weeks draws interest from buyers that are currently in the market as well as new buyers coming into the market. Later only the new buyers coming in the market will consider your home.

There are signs that your price is not competitive and these signs surface fairly quickly. The number one sign is even with extensive marketing, your house is not showing. This is because the buyers are not considering your house because there is enough inventory for them to see plenty of homes that are priced correctly.  The buyer will place their offer on the home they feel will get them the most value.

Another sign that your house is not priced correctly is that it is showing a lot but you are not seeing any offers.  When this happens, your home is priced correctly per square foot in your neighborhood but is not priced correctly for the condition, location or age.  There are a few things that a seller can do in this situation, improve the condition, update the home to get the price they would like or lower their price to reflect condition, age or location. Improving the condition and some types of updating may be simple and cost effective as other improvements may not be a good return on investment. Location cannot be changed, of course. So if correcting the condition and/or updates are not feasible than the best thing for a seller to do is to adjust their price.

Every seller wants their price which is understandable. A seller needs to take into consideration the cost of holding the house while they are trying to get their price.The monthly cost of mortgage, taxes, insurance, utilities and maintenance can cut into your net profit very quickly. It is wise to consider the average days on market and absorption rate to determine how long your house will stay on the market and than factor in your cost per month when setting your price. In most cases setting your price to avoid expenses will be the best way to go. Remember, it is all about what you will NET on closing day. A shorter time on the market priced correctly with fewer expenses will be the best way to get your house sold.

Additional Seller Tips:

Stage That House to Get It Sold

Linda Breeding

910-690-8368

www.RealEstateInPinehurst.com