Sellers-You Choose How to Price Your Home

Dated: 08/20/2018

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Sellers-Pricing Your Home is Up to You

By Karel Murray, Our Branch, Inc. 

As a Seller, you determine the asking price for your property. But, pricing your home doesn't have to be difficult ifyou address it realistically. Realtors and Appraisers are excellent resources for guidance on how best to price your proeprty so it will sell. Teh greatest difficulty you have as an owner lies in viewing your property: seeing it not as the home in which you have raised your family, but as a marketable commodity. 

To Move or Not to Move 

If your decision to move is not final in your mind, receptiveness to create offers is limited. Often, Buyers will submit offers waiting to see how you, the Seller, will respond. If your commitment to sell is 100%, you'll be more opent to accepting the value the market places on your property. 

Market value is established by determining the specifics of the home such as square footage, style, location, age, amentities, and condition. A real estate agent will use current market data, asssessed values, and comparable proeprties to evaluate and determine a pricing range. An appraiser (at sale) will set the price based on technical uniform pracitices. In addition, the location of your proerty will have a large impact on pricing. 

You Invested in Major Improvements and Now You Want Your Money Back

You laid new carpet throughtoutthe house, insalled a new roof, and vinyl-sided the home as well as expanded the deck. But the price your Realtor is suggesting won't get you your money back. Unfortunatley, the types of improvements mentioned above are considered maintenance items and do not necessarily increase the value. However, it does increase the likeliehood that your home will be more desirable than others in the same price range that have not had the updates. A Buyer is not necessarily going to be willing to pay for changes you made that, A: he feels would be necessary in any home or B: are not to his liking. It's a fact of the Buyers mindset. 

You Overpaid When You Bought the Property

When you purchased your home initially, it was a sellers market and you wanted the house, so you offered what it would take to get it. Now you are ready to move into something else and the nightmare begins. Your home may no longer be worth what you paid for it or you will break even. What happened to the great real estate investment strategy? Now you are without a profit to invest in the next property. It stings, but all I can say is "Sorry". The economy, world market, and other financial factors still heavily impact the market. Even though you want to make a profit, your home won't sell if you ask more than it is worth. 

 You Need to Make More Money To Afford Your New Home

This is always a difficult scenario: in order to get the home of your dreams, you have to sell your current property at a certain price. If this doesn't happen, you will have to rethink what your dream home really is, and you aren't willing to do that. Well, this is the tough love section... although itis a very difficult thing to face, the reality is that you can't make your house worth more than it is just by wishing it to be so. 

 You Want to Allow Room for Negotiations

If you have ever taken a negotiations course, you will learn that thete are soft and hard negotiatiors in the world. The soft negotiators aremore interested in maintaining relationships and eliminating stress. They want to make sure the dealis done and everyone is happy. However, thehard negotiators ar einit, at least in part,for the challenge. they will work competitively to get the propertya the the right price and terms, regardless of what it does to the exiting relationships. The majority of the population fallys intothe soft negotiator category. 

Quite simply, soft negotiators hate the process. They may ask "Why won't they take my offer?" or they will refuse to go back and forth in an offer/counter-offer process. It just gets too confusing and increases the tension and stress. Some people may even walk away from the transaction and start again with someone else who will be reasonable. This is more likely to happen when a home is really over-priced. 

For example, a house with a market value of at $115,000 listed at $122,000 is workable. The same house with an asking price of  $130, 000 is a headache waiting to happen, because that's what you will do, wait. And the Buyers will wait and wait. And keep passing you by as new houses come on the market. Houses that are realistically priced, that have an attached value, based on solid, supportive data.

It's About Price Versus Value

Often, Sellers will start at a higher price thinking. "We can always come down!" This is a huge mistake. The proeprty could be priced at a level which the Buyer's evaluation of other competitive properties and how each property best fits their home requirements. 

Value and price must be in alignment or Buyers will simply move on to another property, that is priced correctly. In addition, you lose the intial impact of the excitement that is generated for a new listing on the market. If your home has not received an offer withing 60 days or after 20 showings, there may be a problem with the price of your house. The ultimate selling price is determined by the prospective buyers whom we are able to reach through advertising, word of mouth, and networking. Itis cirtical that your home be priced competitively, with other options Buyers may be considering. 

If a property requires " work" or clean-up and it is priced the same as another home that is in immaculate condiditon, all things being equal, the Buyer will most likely purchase the proerty that requires little or no alteration. The optimal showcasing of a property is critical for a quick sale. 

A sound listing price will immediately attract attention and generate activity. When a property first comes on the market, the Buyers immediately evaluate how your offering compares to others. And if it competes favorably, it gains the Buyers' attention and spurs them on to ask questions or set up a showing. If comparable properties are attracting more attention than yours, you then know that your price does not compete in the marketplace, regardless of location, ecomonic conditions, or other external condiditons. 

 Creating the Right Marketing Program

Lack of an effective, aggressive marketing plan, whether For Sale By Owner or listed with a real estate agent can result in an overall lack of exposure and cause a property to languish on the market. As a Seller, choose an agent with a track record you can trust and whose objectivity assures that they have your best interests in mind. 

It is likely that no matter how great a value your home is, timing, marketing conditions and economic factors will all impact how long it takes to find the perfect Buyer. Regardless of how long a property has been on the market, if Buyers really love the home and everything points to it being a great deal for them, they will make an offer. 

Ultimately, it's up to you. 

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