ABC's of Home Selling III - Price Consideration

By
Mortgage and Lending with Ruoff Home Mortgage 234777

      C = Carefully consider the price of your home.agent selection
               This is the third installment in our series of the ABC's of selling your home.

   Our first article A = Appearance touch on getting your home ready for the market.
   The second was B =  Brokerage / Agent selection  which outline selecting your Realtor.

 Pricing is the most critical factor to get right if you want to be filling out those change of address cards and moving.


 Get the price wrong and you will  languish on the market. While you need to be warned that too low of a price can cost a lot of money. The reality is I have never had anyone think that their home was worth way less than it was. While I say that jokingly, it's the truth. We all see our castle as, well a" CASTLE."
  The price that is set, will be by itself the greatest positive or negative in the marketing of your home. Other agents who perceive it as greatly overpriced will not even both to show it to their buyer clients.

  • If  your on the market for 30 days and have had little or no showings, your price is probably off by 10% or more.
  • If  you have 5 showings and no offers, your price is probably off 5-10%

 Pricing Analysis
In previous years if your home went on the market and was say 10% overpriced and homes were appreciating at 10% a year. All you did was sit on the market for  12 -18 months until the market came up to your price through this appreciation and then it sold.

 Today in a declining market, overprice it and you will be left behind until you adjust your price to the current market. With a declining market as we are in now, that market price is continually dropping every month. So to be wrong and then don't realize it for 3- 6 months can easily cost you  5,10,20 % or more, because now you are, what we refer to as chasing the market.


  You will seem to always be adjusting the price and will look desperate. Every buyer client that looks at a home will ask, "How long has this home been on the market?" in their first two questions.
      So  in conclusion : The best way to price your home is to do your homework on B = Brokerage / Agent selection  and  listen to their analysis. Make sure they prepare and explain to your satisfaction.

  • Comparable Market Analysis  
  • Absorption rate
  • Average Days on Market for Solds
  • Local market pricing direction (Appreciation % / Depreciation %) with Data 

Hiring Agent
   Last remember that prospective buyers  are not sympathetic to how much you have invested in your home or how much you need to get out of your home.

  • Pick a good agent 
  • Listen to their recommendation
  • Get your forwarding address cards filled out

 

  If you are in the Kosciusko County Lakes area. We want to be your Realtor. Contact us anytime, for a no obligation Market Analysis of your home. Greg@wawaseerealestate.com

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Greg Miller   
Mortgage Loan Originator 
NMLS # 234777
www.Ruoff.com
gregm@ruoff.com

941-552-9989


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Rainer
18,005
Betty Fletcher
Fletcher Property Management Inc CRMC® * www.FletcherPM.com - Little Rock, AR
MPM, RMP - Little Rock Arkansas Property Manager

Sharon & Greg - EXCELLENT information!  Thanks for sharing.

Mar 15, 2009 11:34 PM #1
Rainmaker
1,081,635
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate

Sharon and Greg I have written many articles on this subject. Those wishing to sell their home better price it right and pick a darn good agent. The days of putting a sign in the yard and sitting back and waiting are over! It takes a concerted effort by a pro to get a home sold today.

Mar 16, 2009 11:27 AM #2
Rainmaker
171,688
Greg Miller
Ruoff Home Mortgage - Sarasota, FL
Florida Home Loans - Conventional,FHA,USDA,VA

Betty - Thanks for stopping by and commenting

Bill - Totally agree with your comments. It has never beenmore critical to pick a good agent and then accept their recommendations.Thanks for commenting

Mar 16, 2009 01:57 PM #3
Rainer
157,174
Tom Boos
Sine & Monaghan Realtors, Real Living - Grosse Pointe Farms, MI
Providing the very best of service to Sellers and

This is a great summary of the "Pricing issue" as I like to call it.  I'm going to use some of this in my next listing presentation.  Thanks

Mar 17, 2009 07:59 AM #4
Rainmaker
171,688
Greg Miller
Ruoff Home Mortgage - Sarasota, FL
Florida Home Loans - Conventional,FHA,USDA,VA

Thanks Tom - Your welcome, I hope it helps.

Mar 17, 2009 08:04 AM #5
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Rainmaker
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Greg Miller

Florida Home Loans - Conventional,FHA,USDA,VA
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