Probably the most important aspect of pricing your home for sale is the ability, of the homeowner, to remain impartial. Yes, you carted two tons of satillo tile from Mexico on the roof of your Volvo and yes, that indoor botanical garden almost broke the bank, but unfortunately those intimate details of your home will not make a difference as to the correct listing price of your home. It's difficult for sellers to step back and take an attitude of detached interest in their home, but it’s essential to do so if you want to sell successfully in this market.
Data has shown that the length of time a house is on the market affects the price. If a house is overpriced initially, then it has a good chance of selling below market price. This means that by the time the price is reduced to a fair and reasonable selling price, it has become over exposed and has begun to raise questions in buyers' minds.
Interestingly enough, Homebuyers usually have a better grasp of current market value in the area where they're looking to buy than do sellers who own and live there. Buyers look at a lot of new listings. With internet tools and resources, buyers are doing their research. The bottom line is if your home is worth what a buyer will pay for it given current market conditions. This may not be the same as your opinion of what your home will sell for, or what you hope it's worth.
When suggesting a list price, it helps to understand how Dreamcatcher Realtors establish a target range for your home. We research our mls database for homes similar to yours, in your area, which have sold. The most recent sales give the best indication of the direction of the market. This is not to imply that pricing is simply a precise mathematical equation. It takes a working knowledge of our local real estate market and an awareness of the idiosyncrasies and desires of buyers drawn to this community. At Dreamcatcher Real Estate we recognize that your all-important listing price is part science and part art.
Here are a few suggestions to help you feel empowered and confident when pricing of your home:
- Do your homework - Study past sale statistics for homes in your area that your broker has provided. None will be identical, of course, but it will give you a clearer understanding of the market.
- Have confidence in your Dreamcatcher Realtor - We could share many a cautionary tale of sellers who wanted to list at a price much higher than recommended. We are professionals, and we know our business.
- Think like a buyer - What are the things that you value in a home? These are likely the same things that your buyer values as well. You want your home to be the standout of all the similar or “comparable” properties.
- React swiftly and decisively - If your home is on the market and is not being shown, or if you receive feedback that you are priced too aggressively, don't hesitate to adjust your price
Get an appraisal - If you are still unsure about pricing or if you have an unique property, get a professional appraisal done by a licensed appraiser.
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