How to Properly Price Your Home For Sale.
News Flash!!! Saratoga Springs Real Estate buyers respond to property prices!
After reading Michael Cook's post I was reminded of the graphic below which shows how real estate buyers respond to the asking price of the property. It shows in graphic detail why you should price your property to sell and not the price you may have sold for a year or two ago!
The middle bar is also considered the average asking price as described in Michael's post.
On the left side of the triangle you can track how your asking price compares to the average for similar homes in the area. The prices vary from 15% below the average to 15% or so above the average.
On the right side of the triangle is shown the quantity of buyers who will view your property for any given price as compared to the average. For example, at the average asking price you'll get about 60% of the potential buyers for your type of home to view the property. The other 40% just aren't motivated to look at your home for a variety of reasons.
Here is how you can use the graphic to your advantage when pricing your home to sell!
You pick where you want to price your home on the left side. Lets say you take Michael's approach from when he left Michigan (I used to live in Michigan too, but a long time ago) of 2.5% below the average price. Take this point from the left to the same point on the right side of the triangle and estimate the % number.
2.5% below the average means that you'll get about 65% of the potential buyers to view your home. If you price your home 10% below the average you'll get 75% of them and so on.
Likewise, if you price your home above the average (let's say because you think your home is special etc....) the numbers drop off quickly. At just 10% above the average you'll drop to 30% of potential buyers viewing your home.
What's the bottom line? Buyers are price sensitive. They always have been and always will be.
Work with your Realtor to price your home appropriately to bring you a buyer in the time-frame that fits your plans.
IMPORTANT - once you've priced your home and put it on the market you can't use this triangle for price reductions. You are then chasing the market - a bad place to be!
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