Pricing is directly related to the amount of time it takes to sell a home and whether it may will sell at all. Pricing is particularly important in a slow market. The following is information on pricing New Jersey listings to sell in a declining market.
Recognize the Real Estate Market
Every real estate market is different. When you see facts on the news, those typically refer to national averages. Your particular area may be dramatically different. A local real estate agent can provide a comparative market analysis on your property. This analyzes recent sales of similar homes and provides an estimated price range in which your home may sell. This figure may be different based on the season and recent sales, so avoid referring to outdated figures.
When viewing the market figures, understand that it is a range. Where your home falls in that range depends on other homes currently on the market and your target time frame. As a home owner, it is understandable to feel a sense of attachment to your home and to the work that you have put in. Unfortunately, not all home buyers will assign similar value to different features and amenities. Anticipate that you may not recover the full amount spent on renovations. Furthermore, home prices may be impacted by bank-owned homes in the area, which are commonly sold at significant discounts and are still considered comparable properties. Market value is defined as the price that a potential buyer is willing to pay for a house at the current time. It may not necessarily match your requirements or be close to what you paid for the house.
Pricing New Jersey Listings To Sell In A Declining Market
Pricing a property above market value will result in valuable time being lost. If the market condition drops further during that time, the property will normally be sold for even less than it would have if priced accurately to begin with. Additionally, home buyers tend to have a negative perception of homes with extended market times. This opinion is difficult to overcome even if a listing reduces in price later. Pricing too high causes more damage than good.
Some Final Advice for Sellers
If the market value of your home is far too different than what you are willing to accept, it may be best to keep a close eye on the market and wait for values to improve rather than overpricing and letting it sit for months or even years. If you must sell and need to do so within an exact time frame, choosing a price appropriate for the real estate market and competitive with other listings will be imperative to achieving your target date. Time is money and overpricing can be more expensive than you anticipate. This information on pricing New Jersey listings to sell in a declining market was offered by Joseph Giancarli at REMAX Tri-County.