Price your home right the first time. Roy Giordano Marlboro/Manalapan Realtor 732-213-2438
Pricing your home correctly the first time is of paramount importance. Now more than ever pricing your home correctly the first time is critical to the success of selling your home in a timely manner for the most amount of money.
The days of trying a higher price to feel out the market and hoping someone will make an offer is over.
The reasons why it's so important to price your home correctly the first time is simply as follows:
1 - When a home is listed on the MLS (Multiple Listing Service) it appears on a hot sheet which the Realtors use as a tool to keep abreast of all the new listings in their market place. As new listings come on the market; the Realtors call their prospective buyers to alert them that there is a new listing on the market that they should see.
2 - Buyers are very savvy in today's real estate market. They are constantly scanning the Internet to see if there are new listings coming on the market. Serious buyers are always on the lookout for new listings.
3 - The first 30 days of a marketing plan create the most excitement and the most activity for a new listing.
4 - Buyers realize they are not going to have much success making a low-ball offer for a home that is new on the market.
5 - One of the first questions buyers ask their real estate agent is "How long has this home been on the market?" Why do they ask that question, because they believe the longer a home has been on the market the lower the price they can offer because the sellers are getting desperate to sell.
What does all this mean? Sellers that price their homes too high in the beginning more often than not miss out on selling their home to a ready, willing, and qualified buyer because they home is over priced and the buyers move on to a home that is priced correctly in this market. 30-60-90 days later the seller decides to lower the price of their home, now they are chasing the market. The buyers that may have bought the home at the now reduced price have already purchased another home. All this is taking place while we are still in a downward trending real estate market. The home is now priced where it should have been priced months ago. Again, the price is now too high for the current market. Another 60-90 days goes by and the seller lowers the price again and so on and so on. Now the home has been on the market for 120-240 days (in some case even longer) The buyers are still asking the same question - how long has this home been on the market? Do you think they are going to make a great offer on a home that nobody seems to want to buy? Do you think they feel that the sellers are worried that their home is never going to sell and they are getting desperate? You bet they do!
There are many beautiful homes on the market that are not selling. People make up lots of excuses why their homes are not selling but the fact of the matter is it's the price, it's always the price! It's not condition, style, location etc. If a home is priced correctly it will sell every time. If it's not selling it's because the price is too high.
The Real Estate definition of fair market value is the price that someone is willing to pay for a home and a price a seller will accept under normal conditions.
Before you list your home you need to have a comparative market analysis completed by your local Real Estate professional. Your Realtor will provide you with all the recent sales of comparable homes in your area as well as the active and under contract homes. Adjustments can be made with the price due to certain amenities and condition. However the actual comparative numbers for closed sales don't lie, they are not fabricated by the Realtor, and they are what they are. We as Realtors realize how hard it is for you to find out that your home is not quite worth what you thought it was in the past five years or so but that doesn't change the fact that you need to price your home accordingly in today's market.
Your Realtor is there to help you get your home sold so you can move on with your life. They are getting paid to accomplish this goal; you should listen to what they have to say. They are the professionals who do this everyday for a living. You listen to your doctor, your lawyer, your auto mechanic, why? Because you're paying them, because they are the experts - the same holds true for your Realtor.
I hope this read proves to be helpful when you decide to sell your home. My best advice to you is try not to let your emotions get the best of you. Your home as you know it is now turning into a product for sale, a business transaction that should be handled as such.
Again, price it right the first time, you'll be glad you did.
If you have any questions about the real estate market, please feel free to contact me. I'd be happy to provide you with a free consultation.
Roy Giordano, Broker Associate - Marlboro/Manalapan Realtor
Price your home right the first time. Roy Giordano Marlboro/Manalapan Realtor