Real Estate Pricing Misconceptions
Setting a value on something we care about can be painful. This is especially true when the thing we care about is our HOME. Many of us work hard to turn a house into a home, and when it becomes time to move on, to put the home we've loved out in the marketplace for all the world to see, we are hard pressed to price it to sell.
No matter what we would rather believe, the plain truth is that when pricing to sell, only four things matter: LOCATION, CONDITION, MARKETING and PRICE. It does NOT matter:
1. What you paid for your home - okay, it may matter to you but it does NOT matter to your buyer.
2. What you invested in updating your home - those updates affect MARKETABILITY but not price.
3. What you want or need to buy a new home - sorry, irrelevant to the buyer.
4. What you want or need to rebuild the home you have - again, you care but it means NOTHING to the buyer.
5. What your neighbor says he sold his home for - hey - if your neighbor wants to buy your home, let's talk!
6. What another realtor says he can sell your home for - because when it's all said and done, housing prices are just like stock market prices. Value equals what somebody will pay.
If you are getting ready to price your home for sale, how about giving me a chance to help. Just let me know.
Showing posts with label location. Show all posts
Showing posts with label location. Show all posts
Sunday, August 3, 2008
Real Estate Pricing Factors
Real Estate Pricing Factors
When you're ready to price your house for sale, you have tons of stuff to think about. When you need to move. What you're going to do when the house sells. How a sale affects family, work, etc. It's good business to talk with an agent about pricing, specifically about:
1. Availability - it doesn't make a lot of sense to put your house up for sale and make prospective buyers jump through hoops if they want to look at it. They won't buy if they can't look. So let your agent put a lockbox on and be ready to show your house at the drop of a hat.
2. The competition - know what else is for sale. Not just in your immediate neighborhood but in the greater community. Buyers have choices and a smart seller knows what they are.
3. Timing – how quickly you need to sell your home makes a big difference. If you need to be in another part of the country in 30 days, then price it accordingly.
4. The condition of your home - beautiful, move-in ready homes are very appealing, particularly to buyers who have been looking at trashed properties.
5. Terms - Are you flexible with closing date? If somebody is looking for a home that is move-in ready that they can purchase quickly, that may be a selling feature for you. If you are willing to offer a lease-purchase, that may be attractive to a buyer who wants your house but either has some credit issues to clean up or a down payment to beef up.
6. Warranty - Buyers often ask for seller to pay for a home warranty. Offer it. It's a good idea to have a home warranty on the home at the time it's listed - the warranty will transfer once a sale happens.
7. Amenities - What's particularly cool about your place may be appealing to a prospective buyer too. Maybe it is your floorplan, your spa, your neighborhood, your greenbelt. Amenities affect marketibility.
8. Lot size, trees, views, privacy, etc. - Location, location, location. Did I mention location? If you are fortunate enough to have a great location going for you, market it for all its worth.
Summing it up: Four things affect the sale of a house. They are price, marketing, condition and location. There's an art to this stuff. Want to talk about it?
When you're ready to price your house for sale, you have tons of stuff to think about. When you need to move. What you're going to do when the house sells. How a sale affects family, work, etc. It's good business to talk with an agent about pricing, specifically about:
1. Availability - it doesn't make a lot of sense to put your house up for sale and make prospective buyers jump through hoops if they want to look at it. They won't buy if they can't look. So let your agent put a lockbox on and be ready to show your house at the drop of a hat.
2. The competition - know what else is for sale. Not just in your immediate neighborhood but in the greater community. Buyers have choices and a smart seller knows what they are.
3. Timing – how quickly you need to sell your home makes a big difference. If you need to be in another part of the country in 30 days, then price it accordingly.
4. The condition of your home - beautiful, move-in ready homes are very appealing, particularly to buyers who have been looking at trashed properties.
5. Terms - Are you flexible with closing date? If somebody is looking for a home that is move-in ready that they can purchase quickly, that may be a selling feature for you. If you are willing to offer a lease-purchase, that may be attractive to a buyer who wants your house but either has some credit issues to clean up or a down payment to beef up.
6. Warranty - Buyers often ask for seller to pay for a home warranty. Offer it. It's a good idea to have a home warranty on the home at the time it's listed - the warranty will transfer once a sale happens.
7. Amenities - What's particularly cool about your place may be appealing to a prospective buyer too. Maybe it is your floorplan, your spa, your neighborhood, your greenbelt. Amenities affect marketibility.
8. Lot size, trees, views, privacy, etc. - Location, location, location. Did I mention location? If you are fortunate enough to have a great location going for you, market it for all its worth.
Summing it up: Four things affect the sale of a house. They are price, marketing, condition and location. There's an art to this stuff. Want to talk about it?
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