” The term ‘Priced to sell’ is easier said than done when it comes to a Victorian ranch home with acreage. As you know, our house had been on the market more than once. Your expertise and effort toward finding the true market (worth) proved invaluable. ”
– D. Huseby
Determining the Worth of a Property
We are not the ones who determine how much your home is worth. The market does. It tells us where to price your home to sell, and how to approach the marketing of your property. Here are the factors that will affect worth in the current market:
Location | The location is the single most important factor in determining the worth of your property.
Condition | The condition of the property affects the price and the speed of the sale. As prospective buyers often make purchases based on emotion, first impressions are critical. We will be able to help in optimizing the physical appearance of your home to maximize the buyer’s perception of the home’s worth.
Competition | Prospective buyers are going to compare your property – both the condition and the price – to other available listings in and around your neighborhood. Those buyers will determine worth based on properties that are listed or have recently sold in the area.
Timing | Properly worth is affected by the current real estate market. Because we cannot manipulate the market, we will collaborate on a pricing and marketing strategy that will take advantage of the first 30 days your property is listed. It’s the window of opportunity when buyers and their agents discover your property and are most likely to visit and make offers.
Price | Pricing your home properly from the outset is the deciding factor on how long it will take to sell it.
When determining price, it is very important to price your property competitively. Buyers make their pricing decision based on comparing your property to similar properties sold in your area.
Common Seller Questions
CAN WE LIST HIGH, AND JUST COME DOWN LATER?
This is the #1 mistake that traditional, old-fashioned agents make with sellers, and almost 50% of the listings end up NOT SELLING AT ALL. We certainly understand you would like to list high in order to leave room for negotiation. But have you considered the major problem that this creates for you as a seller?
Most people won’t bother to look at a property that is priced too high. Would you rather have us negotiate multiple offers to get a higher price or not have an opportunity to negotiate any offers at all? We find sellers drastically overestimate the amount of room needed to negotiate. Bottom line: Get it priced right up front, and you are rewarded with a higher list/sales price ratio and more money in your pocket at closing. Over-price your home, and you risk being rejected by the market and never selling.
ANOTHER AGENT SAID THEY COULD GET MORE MONEY.
We hear this almost every week. It is usually told to the seller by an inexperienced agent. Unfortunately, these agents are more excited about the prospect of taking a listing, rather than getting it sold. Most are afraid to tell the truth and risk upsetting the seller, and the rest are unable to figure out the right price for the property due to lack of experience and expertise.
The typical plan for a traditional old-fashioned real estate office is to take the listing – regardless of price – and then work on wearing the sellers down until they agree to lower the price. It’s a shame as this practice is the #1 reason that listings expire after being rejected by the market and never sell – leaving an extremely unhappy seller behind.
CAN’T I JUST SELL IT “AS IS”?
Of course you can, but you will have fewer showings and receive a lower sales price than if you had completed repairs. Buyers’ repair estimates are usually very high and sometimes double the actual cost of the repairs if done by the sellers. Buyers will deduct the inflated prices of those repairs, and update and subtract them from the offer price.
Its Effect on the Market
- A property generates the most interest when it first hits the market
- The number of showings is greatest during this time, if it is priced at a realistic market level
- Starting too high and dropping the price later misses the excitement, and fails to generate strong activity
- Many homes that start high end up selling below the average market price.
- Historically, the first offer is the best one.
Attract Buyers with the Right Price
Pricing your property competitively will generate the most activity from agents and buyers.
Pricing your property too high may make it necessary to drop the price below the market level to compete with new, well-priced listings.
Your Home’s Upgrades
When pricing your home, we want to take into account the investment you have made in improving your property. Please list all upgrades you have done, as well the approximate amount you spent and the approximate year of the upgrade. Of course, we will not keep this information all to ourselves. We will share it with prospective buyers so that they understand our pricing strategy.