Noel Crider, Realtor®
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Pricing your home to sell
Price it right out of the gate!
Pricing your home correctly is the single most important key to getting it sold. Of course location and condition come in a close second. Even if you do find an eager buyer who is willing to overpay for your home, the deal will screech to a halt when the lender’s appraisal comes in under the value of the contracted price.
There is a magic ”window of opportunity” when a property first hits the market. This is when it attracts the most attention from buyers and real estate agents who represent motivated buyers. If your home is priced too high, both buyer and agent will discard it from the prospect list, and probably won’t revisit it. They will assume they are dealing with an unrealistic seller.
Factors that affect the price of a home
Location: You can’t get away from this one. If your house is located in a desirable area that is in demand, you will be able to get a higher price than you can for the same house in a less desirable area. Freeway or road noise, busy corners, train proximity will detract from a home’s desirability, while good schools and convenience to shopping & commuting will add to desirability.
Condition: A house that has been better maintained and shows better will always sell for more than one that has had deferred (neglected) maintenance and needs work. A home that has been properly prepared for sale home will always show better! A house that has been updated with modern amenities will also command a higher price.
How to set the price
CMA (Comparable Market Analysis): A comparison of similar properties in the same general area that compares actual sold prices. A Real Estate Agent can generate a CMA for you at no charge. A current popular consumer CMA tool is Zillow.com. Do not put too much confidence in the accuracy of this tool as it does not take into effect condition or other amenities of a property.
Current Active & Pending Properties: In our current “Buyer’s Market,” it’s important to analyze the competition. Price your home below the competition (Active properties) to generate an offer. Note at what price point Pending properties received an offer. Don’t try and test the market by starting out with a higher price in hopes that you will get an offer.. You will end up lowering your price, and can often end up chasing the market downward, and getting a lower price than if you had priced it right in the first place.
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