Price Your Home Realistically If You Want It To Sell
February 28, 2017 | Posted by: Mortgage InGenuity
Setting a price for the home you are selling requires serious thought and research. Homebuyers have choices in today's market, and that means you should not list your home at an unreasonably high price. If a comparable home in your neighbourhood is selling for $25,000 less than your listing, why should a buyer pay your price? It doesn't matter if you feel your house is worth more, if you have large payments, or if you are underwater. Price is the deciding factor.
The Three Prices Of A Home
Every home has three selling prices, and it's important to understand how the final one is determined. The three prices are as follows:
The owner's asking price
The seller's price offer
The final agreed upon price
How close either of the first two prices will be to the third depends on several factors, including the seller's motivation and what the buyer is willing to pay. If you are selling because of financial problems, you must realize that your money issues can't be transferred to the buyer. You're home will sell for what it is worth in today's market, and overpricing it will delay the sale. Homes that are priced right will usually sell quickly.
Your real estate agent can show you comparable homes that have recently sold in your neighborhood. Look at the price range for homes that are similar to yours. Looking at comparables will help you list your home at a reasonable price that will attract buyers. If local neighbourhood homes are selling for $325,000, don't ask for $375,000 and expect to get it.
There can be a sizable difference in home prices based on the location. Supply and demand has a great influence on determining the value of a home. If you live in a thriving business community where jobs are plentiful and housing is limited, it's a sellers market and prices increase. In a community that has job losses and residents moving away, the price of homes will drop. It will become a buyer's market.
How Much Is Too Much?
Every home is unique, and that allows for some flexibility in the housing market. Local conditions dictate what you can expect. An older neighbourhood of vintage homes may have sales of vastly different values. This can happen because some of the older homes have been maintained and modernized while others have not. In new neighborhoods you can expect prices to be closer to the same value. If homes similar to yours are selling for $325,000 in your neighborhood, listing your home for $400,000 will not result in a sale. The selling price of your home can be increased, if you have added a swimming pool, patio, or other highly-valued amenities.
List your home at a realistic price for the area where you live. Homebuyers will check similar homes and compare prices. Your home will sell much sooner if the price is in line with comparable properties in your neighborhood.