Pricing Your Home
PRICING YOUR HOME IS BOTH AN ART AND A SCIENCE
Price is the number one factor that most homebuyers use to determine which homes they want to view. It's important to remember that, although the price is ultimately set by you, the value of the home is determined by the buyer. Try to avoid allowing your enthusiasm and emotions impact your better judgment - overpricing is a common mistake that can cost time, energy, and money in the end. Achieving the optimal price is the result of both objective research into comparable properties and a gut feeling about your property and the current market.
DANGERS OF OVERPRICING
- Most of the activity on your home will occur in the first few weeks. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical.
- Buyers who have seen most available homes in their price range are waiting for the "right house" to come on the market. That's why if a house is priced right, it will sell quickly.
- Don't start with a high price and the assumption that you can reduce it later. By the time you decide to lower the price, it may be too late, as interest will have already waned.
- A major cause for concern is appraisal problems; overpricing can lead to loan rejections and lost time.
- Buyers and agents become aware of the long exposure period and often are hesitant to make an offer because they fear something is wrong with the property.
- You might help sell similar homes that are priced low.
- Timelines for your next property may be delayed.
- You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.
PROPER PRICING IS YOUR KEY TO SUCCESS | THE IGNITE TEAM CAN HELP WITH THAT!
- Provide you with a comparative market analysis (CMA), a comparison of the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMA is performed by comparing previously sold homes in the area, and currently active homes to know your competition.
- Help you stay up to date with market trends and market activity of comparable homes in your area. If you recieve a CMA and do not go live on the market for a few months then we will reevaluate the CMA to ensure we are listing your home at the most appropriate price possible. Remember, the market determines value and together we determine the price.
- Estimate your net proceeds. We will factor in your mortgage payoff (if any), title fees, real estate fees/commissions, and any other applicable fees to show you what we estimate your net proceeds to be on closing day.
- Not ready to list your home yet or just want to stay on top of your homes value? We can set you up on a Neighborhood Market Report so you can stay up to date on the homes selling in your neighborhood on a weekly or monthly basis. Check out our "Free Markey Analysis" tab to learn more!