The Proper Pricing of Your Home

Statements from sellers that really have nothing to do with a home’s value

• Another agent said it was worth more
• People always offer less than asking price
• The buyers can always make an offer

Other factors that do not affect a home’s value

• The original purchase price
• Over improvement (enjoyment)
• The cost to rebuild in the current market
• Personal attachment to the property
• The owners need for equity

Dangers of overpricing your home

• Discourages qualified buyers
• Better positions competitive homes
• Reduces advertising response
• Impacts appraisal valuations
• Creates doubt & uncertainty
• Attracts owner financing & bargain hunters
• Results in your home becoming stale on the market

A proactive pricing strategy

• Overall objective is to sell your home
• The market is the common adversary (Supply & Demand)
• Past sales are not always indicative of current performance
• Proper pricing should yield one offer for every 10 showings*
• We must integrate pricing with a balanced marketing plan
• Factors affecting the sale: Location, Condition, Price, Terms, Realtor

Some thoughts on the condition that affect price

• Think like a buyer
• Start making a list
• Complete repairs before putting your home on the market