There are three main factors that affect the value of a home when getting ready to sell: location, condition, and price. A person cannot change the location of their home. However, you can change the home’s condition to a certain extent. Remodeling your home is a balancing act of how much work and expense should be undertaken, versus whether or not the prospective buyer will like the updates. No matter the location or condition, when placing your home on the market, establishing the correct price is essential.
When selling your home, it is essential to establish the correct price in the beginning. This can prove to be more difficult than it sounds for a variety of reasons:
- You may have an emotional attachment to the property.
- You may need or want a certain profit from the sale.
- Your home is the nicest home in the neighborhood.
- You may have bought during a strong market, and have to sell during a weaker market.
- You know how much money you have put into remodeling, and you want a return on your investment.
- You can always come down in price but you can never go up.
Buyers have short attention spans when it comes to homes on the market. Time and time again we have seen buyers rule out a property because it was just above their price range or priced too high compared to similar homes. The seller eventually drops the price to current market value, and the buyer either forgets about the house by this time or assumes something is wrong with it.
So how do you establish an accurate price?
- Compare your home to similar properties. We look at three categories: homes that have recently sold, homes that are under contract, and homes currently on the market for sale. This tells you what the market has recently done, what it is doing currently, and where it is heading.
- Market Conditions also play a key role in pricing a home. Is it a seller’s market? Buyer’s market? Neutral? The goal is pricing the home ahead of the market. If prices are dropping, you cannot price the home $10,000 above current sales. If you are in a seller’s market with low inventory and plenty of buyers, you can afford to price the home slightly higher. Understanding what the market is doing, and how to price the home based on those conditions, will set you up for success.
- When pricing our personal homes as Realtors®, we get opinions from colleagues to provide an unbiased third party opinion, because we can allow emotion to affect our pricing. It is very difficult for someone to price their home accurately on their own. If you are emotionally attached to your home, or know how much you have spent on upgrades, you might see more value than a prospective buyer. That is why it is very important to allow your agent to establish the true market value.
With all of this information, you can see how important it is to have an experienced, professional Realtor® price your home. The Kahler Team has a proven track record when it comes to determining a home’s proper value. Our method of determining your property’s value includes looking at other comparable home’s that have recently sold, are under contract, and on the market. These components, combined with our knowledge of the market, and years of experience, ensure your home will be priced correctly. As always, the Kahler Team is here to help. For more information about our team, to search for new homes, or see more about our home sales marketing strategy, visit our website at http://www.thekahlerteam.com.
Jeremy Kahler
The Kahler Team
Email: jeremy@thekahlerteam.com
Web: http://www.thekahlerteam.com
Cell: (605) 381-7500
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