What's Your Home Worth? Actually, all homes may have two prices: 1) the price owners would like to get 2) the value buyers would like to offer in the purchase sales agreement. Pricing a home to sell rapidly at the best price, terms and conditions requires skill and due diligence.
The market cannot be fooled! Sale prices are not based on what owners need? In other words, the seller's envisioned net proceeds cannot be the driving factor in pricing a home. Homes sell according to the law of of supply and demand- pure Economics 101.
Studies have shown that the first two weeks on the market are the most crucial to your success. During these initial days, your home will be exposed to all active buyers If your price is perceived as too high, you will quickly lose this initial flurry of activity, Then you will be relying mostly on the tiny influx of new buyers entering the market each day.
Here are some key factors regarding the need to price homes appropriately from the onset:
•1. Your home may not appraise at the higher price, even if negotiated in the purchase sales agreement. What this means is that the buyer may not be able to secure a mortgage loan.
•2. Overpriced listings help to sell the competition. Comparable homes in your area priced at fair market value attract more interest.
•3. Your motivation level is critical in setting a sales price. Highly motivated sellers with a sense of urgency and immediacy need to price their homes just under the competition.
•4. Your local real estate market does not exist in a vacuum. Review sales data of comparable homes that have sold within the past 60 days to determine target sales price.
•5. Find out why certain homes have languished on the market. Condition, location, price, unique style and/or floor plan, unusual lot, noisy street, etc.
•6 Markets are dynamic.Yesterday's news is stale. If only a few home showing occur within the first two weeks and/or there is a pattern of feedback suggesting overpricing, react swiftly and decisively. Don't delay! LOWER THE PRICE! Failure to do so will prolong the frustration and potentially drive the price substantially lower in the end.