Just like on the famous game show, setting the right price on your home can be worth thousands.
In this sellers’ market, it can be tempting to price your home for more than market value in hopes that you get lucky. If it doesn’t sell, you can always lower the price to market value later and all you’ve lost is a little time, right?
WRONG.
- Potential buyers who can’t afford the price don’t bother to look–or to make offers.
- Potential buyers may decide to not look at your home because there are similar homes priced lower.
- If you do find a buyer that is interested they’ll likely try to negotiate the price which can extend the length of the sale by a week or more.
- Even if a buyer is willing to pay an over market price, they may not be able to get financing. Lenders often don’t approve a loan if the appraisal is lower than the contract price.
- When the house doesn’t sell, you may have to lower the price below competing houses in order to move it.
Therefore, it’s best to avoid the temptation to overprice as timing is extremely important in the real estate market. You’ll receive the majority of your buyer interest in the first few days and weeks after you place your home up for sale; therefore, it has the highest chance of sale when it is new on the market. The longer it is on the market the more likely potential buyers will gain a negative perception of the house (i.e. there must be something wrong with the house.) This often results in a sale at less than market value.
On the flip side, if you are in a hurry to sell you may be tempted to underprice your home. While you’ll likely receive a high number of offers very quickly, you’ll end up leaving some of your home equity on the table – equity that you could easily have realized as buyers would have been willing to pay the difference.
If your house is priced right from the beginning, you are in the best position to attract the maximum number of buyers able to pay the price your home is worth – and to sell your home within your timetable.
How do you ensure the Price is Right?
Arriving at an accurate asking price involves statistical analysis, market awareness, and intuition backed by experience. Every home is unique. Only a professional market analysis can give you the accurate, reliable foundation you need to price your home right. When I conduct a fair-market analysis, I:
- Compare your home with similar area properties currently for sale or recently sold. Only a licensed REALTOR® like me has access to the Multiple Listing Service (MLS), which provides all the information needed to accurately and thoroughly compare your home to similar area properties.
- Inspect the condition and appearances of your home’s exterior and interior and note any repairs, painting or staging that will help sell your home at its best price.
- Consider current vs. historic real estate market conditions and trends in the area and in your neighborhood, combined with firsthand experience, and insights gained from being active in the community.
- Review current interest rates and lenders’ criteria.
- Evaluate location and lot size; age, size and condition of your house; number of bedrooms, baths, total rooms; and any extras you have (such as improvements, extra rooms, outbuildings, acreage).
- Review the assessed value of your home, its previous sale prices, your maintenance and utility costs and your local taxes.
Are you considering selling your Northwest Georgia home? Contact me and I’ll be happy to answer any questions you may have. Or get an instant price estimate with a free comparable market analysis.
