- More than 4 million homes are listed for sale in the US each year.
- Over one third don’t sell…many would sell if they were priced correctly.
- No matter what real estate market conditions exist, every property has a top dollar value relative to the market.
- No matter what the market is, people are looking for a way to position their house in order for it to sell at the highest price possible and in the shortest time.
- There are many houses in competition with yours in the local multiple listing service. Depending on the market, that could be hundreds or even thousands each month.
- Buyers today will be comparing your house with others on-line and seeing many of them in person.
- Remember, the consumer always wants the best product, at the best price, that meets their needs. Isn’t that what you want when you buy your next home?
- A good Real Estate Agent will create a Comparative Market Analysis (CMA) that will tell you what houses similar to yours sold for and how long they were on the market. There will also be information about homes that did not sell. Pay close attention to why they didn’t sell. You don’t want one of those reasons to be the reason your house doesn’t sell. There will also be information about homes that are on the market now…your direct competition.
Four ingredients that make up a price…
- Style and/or Condition
- The market. The # of houses you are competing with; interest rates & the economy. The market affects value and average selling time
- Price…the number one factor
- In order for a house to sell the list price must be in direct relationship to the other 3 ingredients
- If just one of those ingredients is out of balance the property will take longer to sell and the $$$ amount will be less.
- Two things happen when the list price is too high…fewer people will look and the selling time will be longer.
- The more competitive the price the more likely you are to sell quickly.
- The most critical time to sell the house is in the first 30 days, because there is more showing activity in the 1st two weeks when it’s first on the market. You want your property to be positioned competitively so you don’t miss out on that first initial surge of interested buyers.
- Two crucial elements for you to get top….$$ PRICE & TIME
- If a home is overpriced it can become “shop worn” and people may think there is something wrong with it. Buyers might look but they don’t buy.
- You may have had an appraisal done, but that doesn’t necessarily mean that amount is the fair market value of the house. When you decide to sell, its what any given buyer is willing to pay that counts.
“What kind of experience do you want to have 30 days from now?”
Do you want to be in your new home enjoying its benefits, or remain in the house you are living in right now?
Buyers don’t like the lived in look. They need to mentally move their things in… “Buyers only know what they see, not the way it’s going to be”.
Houses that are priced right sell for more $$
NATIONAL ASSOCATION OF REALTORS: survey of selling price vs. asking price based on length of time on the market:
Homes that sold in the first 4 weeks averaged 1% more than the listed price
4-12 wks averaged 5% less
13-24 wks averaged 6.4% less than list price
24 wks or more averaged 10% less than list price
The longer you are on the market, the less a home will sell for.
Overpricing disappoints buyers. They are expecting more, and you can’t negotiate without an offer. Like the stock market, you can only sell for what the market will bare.
THE MARKET DICTATES PRICE
There is always a buyer for your home. When your home is overpriced that buyer is YOU. If your house isn’t selling it’s because buyers aren’t willing to pay the price it is listed for.
What kind of experience do you want 30 days from now?
Blair Taylor | Real Estate Consultant Prosper TX