If you're thinking of selling your home during this buyer's market, there are a few good points you should keep in mind when determining your price. I talk to clients all the time who are either trying to sell, or thinking of selling. I wanted to share some good information with all potential sellers, not just my clients.
- Determine if the sale of your home is necessary. Some homeowners want to put their home on the market "to see what happens". In most cases, these sellers really don't need to sell, so they overprice their home. If you really don't need to sell,, wait until the market rebounds.
- Seek the help of a real estate professional when trying to determine the price of your home. Selling is not about what you "need to get", how much you owe on your mortgage (or mortgages in some cases), or how much money you have put into the home. It is based on the most recent solds, the market, the neighborhood's outlook & what a buyer is willing to pay for you home.
- Price your home right the first time. The interest you will receive on your property comes in the first 2-3 weeks it is on the market. Not pricing correctly eliminates good, qualified buyers who may not even look at your home because it is "out of their price range." Frequent price reductions may do two things: You will end up receiving less that you would have if you priced correctly the first time, and potential buyers may question the value of your home because it has been on the market too long.
- This is one I'm sure you've heard before, but still important. Eliminate any unnecessary knick-knacks and personal items from your home. Less is best in my opinion.
- Clean, clean, clean. Potential buyers do not want to walk into your home and see the "dust bunnys" on the floor, or the ring around the tub. Make your home sparkle! This shows you have cared for your home and have taken pride in it's appearance.
In the 3rd quarter of this year for York, Chester and Lancaster counties of South Carolina, out of every 100 finalized listings, 55 failed to sell and 45 sold. Of the 45 sold listings, 20 (that's 45%) needed a price reduction before a buyer was found.
This means that if 55 failed due to overpricing and another 20 required a reduction in order to sell, 75 out of every 100 listings were overpriced in the 3rd quarter of 2008. This resulted in either no sale, or a sale at a much-reduced price after a much-longer listing period.
KEEP IN MIND THAT PRICE REDUCED PROPERTIES USUALL BRING A MEDIAN OF 5-6% LESS OF THE ORIGINAL LISTING PRICE, THAN NON-PRICE REDUCED PROPERTIES.
While all of this information may not be what we want to hear, keep in mind that your real estate agent did not create this market. I like to help my clients by being honest and up-front with them from the very beginning. As always, you are welcome to contact me for information and advice.
You can also browse my website for area information at www.kellyacahill.com.