realistic asking price will help to sell your home quickly and for top dollar.
By properly pricing your home you ensure that the gap between the asking and
selling price is small and that there will be a greater likelihood of competing
offers. Your home will also maintain its 'marketability' for a longer period
of time before people start to say... "That home has been for sale forever. What's
wrong with it?"
A house that is priced 10% over its actual market value is many times
less likely to sell in the initial 30 days of marketing than one priced within
5% of its true value. Not only will an over-priced home take longer to sell,
it is also likely to sell for less than its actual value. This is due to the "discount" often
associated with properties that have been on the market for a longer than average
It should be pointed out that recommended listing prices are based on historical
sales and current market conditions. It is always difficult to walk the fine
line between getting the most for a property while at the same time ensuring
your asking price is competitive enough to attract serious offers.
How you feel about testing the market will determine how much higher than
the current selling prices of similar properties you'll wish to ask for your
home. You can always start at a higher price than the market is currently bearing
and then, if necessary, reduce your price at a future date. The drawback to this
is that it could take longer than normal to sell and you could end up helping
to sell other similar homes as they may look comparably less expensive than yours.
This is where the experience and knowledge of a good REALTOR is invaluable.
REALTORS spend a lot of time and energy making sure they know their local market
inside and out. They keep their finger on the pulse of the market and have the
resources, connections and ability to keep you up-to-date with its constant changes.
They know all of the properties currently for sale in your area and are literally
your best resource for determining and getting the highest price possible.
Main Factors That Affect Market Value Are...
availability of community amenities, such as public transportation, parks,
stores, churches and schools
quality and consistency of neighborhood planning
future development plans and local zoning
style, layout, size, age and quality of construction of the building
size, shape, privacy and landscaping of the yard
Condition of the Home:
quality and appearance of fixtures
general overall condition of main systems (such as roof, furnace, electrical
system, central air, etc.)
the asking and selling prices of comparable neighboring homes
The best way of establishing an accurate range of value for your property
is to have your REALTOR prepare a Comparative Market Analysis (CMA). This will
give you a detailed and accurate overview of the current market.
Market Conditions and the Economy:
number of homes currently on the market
number of people looking to buy
the state of the local and national economy
current mortgage rates
Conditions and the Value of Your Home
No matter the condition or
desirability of your home, its value will be affected by current market conditions.
Here are the various conditions you may encounter and how they will affect you:
The number of homes on the market is equal to the number of buyers (supply equals
demand). In this market, prices are stable and homes sell within a reasonable
period of time. It is a calm atmosphere with buyers having a satisfactory number
of homes from which to choose.
The number of buyers exceeds the number of homes on the market (demand greater
than supply). In this market prices are increasing and homes sell quickly. As
a seller you will probably have more negotiating power and obtain a higher selling
price for your property. Unfortunately you will be on the other side of the fence
when purchasing your next home.
The supply of homes exceeds the number of buyers (supply greater than demand).
In this market prices tend to drop and the homes stay on the market longer. Thus
your home may take longer to sell and you will have less negotiating power in
terms of the selling price. Fortunately you will be in the driver's seat when
making an offer on your next home.
When you understand current market conditions, you are better able to position
yourself as a Seller. It helps to know if you are in a Seller's, Buyer's or Balanced
market when setting your asking price. In a Seller's market, there is little
competition and you may ask for and achieve a slightly higher price than you
anticipated. In a Buyer's market there is a lot more competition and Buyers have
plenty of choices and room to negotiate, forcing you to be very competitive when
setting your price. In a Balanced market you will have a fair number of showings
and sell in a reasonable amount of time if properly priced.
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