Wednesday, February 13, 2013
Pricing your Home
When it comes to pricing your home there are many factors you should consider. You may be tempted to price your home high and call it a day, but that will not likely result in a true reflection of your home's market value. Here are a few tips when pricing your home:
1. Put Aside your Personal Point of View- This is probably the toughest one to swallow, but looking at the scenario as a detached participant will allow you to be honest and realistic. Ask yourself "How much would a qualified, ready Buyer be willing to pay for my home?" Remember that Buyers do not care how much you paid for the home, how many memories you have shared there, or how much cash you need for the down payment on your next home.
2. Get Multiple Opinions- Try inviting 3 agents to visit your home and give their opinion on what would be it's likely selling price. Ask for a "CMA" (Comparative Market Analysis) which will compare your home to similar homes that have sold, are under agreement, and are actively listed in the same market. BEWARE: Some agents may tease you with a high number just to snag the listing, only to suggest a price reduction a few weeks later. In the end you want your home priced right from the beginning to attract Buyers and, of course, to SELL your home!
3. Consider Market Conditions- Are home prices in your area on the rise or moving downwards? Are homes selling quickly or sitting on the market? What are the current interest rates? Will you be selling in a Buyer's market or Seller's market? These are all questions worth asking and are important in how you price your home.
In the end, if the goal truly is to SELL your home, pricing is everything. Competition and price will either drive Buyers away from your home or push them toward it. With a little research and the help of a Realtor you should be on your way to "SOLD!"
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