Be Realistic About The Listing Price
Pricing your property is the most important aspect of selling your home. All homeowners believe their home is worth millions, but this is because it is home to you, but to potential buyers it is simply another property.
Obtaining the best price for your home requires that you be realistic about the position and condition of your property. The size plays a huge part as does the design of the property.
What Does Setting the Right Price Do?
Setting a realistic price for your property will:
• Attract more buyers
• Result in you selling your home quicker which means less inconvenience to you as the seller
• Stop your property listing from going stale as it has been advertised for too long
• Increase the response from real estate agents
By setting a realistic price your home will more than likely sell quickly, either close to or above the price you have set.
Overpriced Properties
Many homeowners do not want to overprice their homes, but they are caught in a situation where they have no choice. Some of the reasons for overpriced properties are:
• The property has been over-improved for its location. If you have a five bedroom house in a street with three bedroom homes that are worth much less than yours, you will not get the price for your large home
• The original purchase price paid for the property was too high
• The price is being set by adding in a ratio for negotiation
The Advantages of Correct Pricing
Most of the buyer activity will happen during those first few weeks your home is on the market. A property which is correctly priced creates a feeling of urgency among realtors and buyers. This prompts them to want to buy the property before someone else does.
The Disadvantages of Overpricing
Buyers in the market often reach a point where they have seen all the available properties in the price range they are after. After a while they simply sit back and wait for either new listings or homes where owners have dropped the price. If your house is overpriced, these eager buyers may not get a chance to view it.
A price reduction on your property may occur too late as realtors and buyers may have lost interest since the house has been on the market for too long.
Buyers often ask the realtors how long a property has been on the market. If it has been on the market for a long time, buyers often assume that there is some hidden problem with the property.
Your Real Estate Agent’s Role in Pricing
Your estate agent should provide you with a market analysis comparison to allow you to view the bigger picture. Your property is only worth what a buyer is willing to pay for it. The value of your property is determined by the property market, you and your estate agent can determine the most suitable asking price.
Your real estate agent has no say in what you eventually want for your property. All they can do is guide you with statistics and the feel of the market.
