AM I PRICED TO SELL?
Attracting buyers is the name of the game. As a seller, you have two
- To get the most money possible
- To sell as quickly as you can.
Be realistic. Price is the number one factor that most home buyers use
in determining which homes to view. Although the price is set by you, the
seller, the value of the home is determined by the buyer. Don't allow your
enthusiasm to warp your judgment and lead to overpricing - a mistake you
can't afford to make.
Here are some factors to consider - recommended by experienced residential
specialists - to help you sell your home. This information is not all-inclusive
and does not replace the expertise provided by a Certified
Residential Specialist (CRS).
What Affects Your Asking Price?
- Urgency. How quickly must you sell?
- Competition. Are there just a few or many homes available in
your price category and area?
- Available Financing. Does your home come with an assumable loan
that is below today's rate? What are the current home loan interest rates?
What financing alternatives are available for your home and area?
- Competitive Market Analysis. Do you know what similar homes
in the area sold for within the last six months?
- Expenses. What are your selling costs?
What Doesn't Affect Your Asking Price?
- Original Cost. Your price is determined by today's market.
- Investment in Improvements. Potential buyers will evaluate you
home (i.e. wallpaper and carpet) and may include the costs to remove or
replace in their offer.
- The Cost to Build Your Home Today. A replacement value is determined
for insurance purposes only.
- Personal Attachment. Prudent buyers purchase based on their
emotions, not yours.
- Neighbor's Claims. Don't listen to what your neighbors tell
you is the fair market value for you home. Other homes in your neighborhood
may not be as similar as you think. Also the terms accepted by both the
buyer and seller greatly affect the sale price.
What Happens to an Overpriced House?
- You'll Help Sell the Competition. The "correctly priced"
homes look even better if your is overpriced. Most buyers are competitive
- Your Home Will Stay on the Market a Long Time. Did you know
that 80% of your potential buyers will see your house in the first four
to six weeks? If you don't sell them then, it takes approximately three
months to replace them with an equal number of newcomers.
- You'll Lose Market Interest and Qualified Buyers. Serious buyers
use the value, quality and price of similar properties as deciding factors.
- A Negative Impression is Created. People will wonder why your
house is still on the market - they'll believe something is wrong with
- You (The Seller) Would Lose Money. You may have to make extra
mortgage payments as well as incur taxes, insurance and unplanned maintenance
- You (The Seller) May Have to Accept Less Money. Studies show
that the longer a house is on the market, the greater the discount off
the list price. Often a seller will accept less than fair market value
in order to sell because of an approaching deadline.
- There is the Potential for Appraisal Problems. The appraiser
from your buyer's lending institution must agree that the home is worth
the asking price. If the appraiser believes the price is inflated, the
loan may not be approved.
Look To a CRS When You Need Answers Fast...
As you can see, there are a multitude of factors that determine the
asking price of your home. Finding this price yourself can be a long and
difficult task. That is why thousands of satisfied homeowners, like yourself,
turn to a residential specialist. A residential specialist has the tools
necessary to compute the fair market value of your house quickly and accurately
while allowing for personal considerations (such as the date by which you
must sell). Your residential specialist can also confidently answer your
questions about listing, pricing and showing.
A residential specialist's goals are the same as yours:
- To get you the most money possible;
- To sell your home as quickly as you can;
- To make selling your home a pleasant and profitable experience for
When You Want to Price Your Home to SELL FAST...
Turn to a CRS!