Attracting buyers is the name of the game. As a seller, you have two main objectives:
- To get the most money possible
- To sell as quickly as possible
Be realistic. Price is the number one factor that most home buyers use in determing which homes to view. Although the price is set by you, the seller, the value of your home is determined by the buyer. Don't allow your enthusiasm to warp your judgement and lead to overpricing, a mistake you cannot afford to make.
Here are some factors to consider, recommeded by your experienced designated agent, to help you sell your home.
What Affects Your Asking Price?
- Urgency. How quickly must you sell?
- Competition. Are there just a few or many homes available in your price catagory?
- Available Financing. What are the current home loan interest rates? What financing alternatives are aviliable for your home and area?
- Competitive Market Analysis. Do you know what similar homes in the area sold for within the last six months?
- Expenses. What are your selling costs?
What Doesn't Affect Your Asking Price?
- Original Cost. Your price is determined by todays market, not past market.
- Improvements. Potential buyers will evaluate your home (i.e. wallpaper, carpet etc) and may include the costs to remove or replace in their offer.
- The cost to build your home today. A replacement value is determined for insurance purposes only.
- Personal attachment. Shrewd buyers purchase based on their emotions, not yours.
- Neighbors, friends and family. Don't listen to what your neighbors, friends and family tell you is the fair market value for your home. Other homes in your neighborhood may not be as similar as you think. Also, the terms accepted by both the buyer and seller greatly affect the sale price, we are not privvy to the terms within those contracts.
What Happens To An Overpriced House?
- You'll help sell the competition. The "correctly priced" homes look even better if yours is overpriced. Most buyers are competitive shoppers.
- Your home will stay on the market a long time. Did you know that 80% of your potential buyers will see your house in the first four to six weeks? If you don't sell within that time frame, it takes approximately three months to replace them with an equal number of newcomers.
- You'll lose market interest and qualified buyers. Serious buyers use the value, quality and price of similar properties as deciding factors.
- A negative impression is created. People will wonder why your house is still on the market. They'll believe something is wrong with your home.
- You (the seller) would lose money. You may have to make extra mortgage payments as well as incur bills for power, water, gas, lawn maintenance, taxes, insurance and unplanned maintenance costs etc…
- You (the seller) may have to accept less money. Studies show that the longer a house is on the market, the greater the discount off the list price. Often a seller will accept less than fair market value in order to sell because of an approaching deadline.
- There is the potential for appraisal problems. The appraiser from your buyers lending institution must agree that the home is worth the selling price. If the appraiser believes the price is inflated, the loan may not be approved.
As you can see, there are a multitude of factors that determine the asking price of your home. Finding this price yourself can be a long and difficult task. That is why thousands of satisfied homeowners, like yourself, turn to a designated REALTOR®. A designated REALTOR® has the tools necessary to compute the FAIR MARKET VALUE of your home quickly and accurately while allowing for personal considerations (such as the date by which you must sell). Your residential can also confidently answer your questions about listing, pricing and showing.
A designated REALTORS® goals are the same as yours:
- To get you the most money possible;
- To sell your home as quickly as you can;
To make selling your home a pleasant and profitable experience for you.
|Contact us at (217) 398-3100 or email by clicking our logo|