C = Carefully consider the price of your home.
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%
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
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