Price to sell, don’t price to sit!The asking price you set for your home significantly affects whether how much you will profit and how long your home will sit on the market. The Carol Team’s knowledge of the overall market and what’s selling – or not selling – will be invaluable in helping you determine the price. The objective is to find the highest price that the market will bear. What you need to get, what you want to get, what the house across the street sold for, what Zillow thinks the house is worth . . . all have little bearing on the final sale price.The most important factor is what a buyer is willing to pay.
Here are some points to consider: Time is not on your side when it comes to real estate. Although many factors influence the outcome, perhaps time is the biggest determinant in whether or not you see a profit and how much profit you profit. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Therefore, if your goal is to make money, think about a price that will encourage buyer activity (read: fair market value) sooner rather than later. In 2016, homes that sold quickly averaged 98% of the original asking price whereas homes that sat for months sold for 92% of the reduced price.
Value vs. Cost. Pricing your home to sell in a timely fashion requires some objectivity. Buyers use the internet to find out everything about anything so they are very savvy when comparing features, benefits and prices.It’s very rare for a house to sell for more than it is worth.Starting high so you can negotiate down usually means the house will have little interest until the price is lowered to the price where it should have started in the first place.Just about any good improvement will help a home sell faster and we know the improvements will increase the value of your home by more than their cost.It is very easy to “over-improve”.
For as long as the house is on the market, you will be paying taxes, upkeep and probably a mortgage, too.Why drag these expenses out for needless months?Much easier on your wallet to just price appropriately in the first place.
Keep it simple. Because time is of the essence, make it easy for the buyers. Remain flexible on showing schedules. Avoid putting contingencies on the sale such as holding over after closing. These details can be negotiated when you receive an offer and lack of flexibility could cause you to lose the sale altogether.
If you’re not getting showings and offers, the public doesn’t think you are offering enough value to justify the price you are asking. And that’s just a fact.