I Priced to Sell?
Be realistic. Price is the
number one factor that most homebuyers use in determining which homes to
view. Although the price is set by you, the seller; the value of the
home is determined by the buyer. Don't allow your enthusiasm to warp
your judgment and lead to overpricing - a mistake you can't
afford to make.
Here are same factors to consider - recommended by experienced
residential specialists - to help you sell your home This information is
not all- inclusive and does not replace the expertise provided by a
Certified Residential Specialist.
What Factors Affect Your Asking
|Urgency. How quickly must you sell?
Are there just a few or many homes available in your price category
Does your home come with on assumable loan that is below today's rate?
What are the current home loan interest rates? What financing
alternatives are available for your home and area?
|Competitive Market -Analysis.|
Do you know what similar homes in the area sold for within the last
What are your selling costs?
What Factors Do Not Affect Your
Your price is determined by today's market.
|Investment in improvements|
Potential buyers will evaluate your home (i.e. wallpaper and
carpet) and may include the costs to remove or replace in their offer
|The cost to build your home today|
A replacement value is determined for insurance purposes only.
Prudent buyers purchase based on their emotions, not yours.
Don't listen to what your neighbors tell you is the fair market
value for your home. Other homes in your neighborhood may not be as
similar as you think. Also the terms accepted by both the buyer and
seller greatly affect the sale price
What Happens to an Overpriced
|You'll help sell the competition|
If your house is priced higher than similar houses in your market,
the buyer will shop the competition.
|Your home will stay on the market a long time|
Did you know that 80% of your potential buyers will see your house
in the first four to six weeks of the listing? If you don't sell then,
it takes approximately three months to replace them with an equal
number of newcomers.
|You'll lose market interest and qualified buyers|
Serious buyers use the value, quality and price of similar
properties as deciding factors.
|A negative impression is created|
People will wonder why your house is still on the market. They'll
believe something is wrong with your house.
|You (the seller) would lose money.|
You may have to make extra mortgage payments as well as incur taxes,
insurance and unplanned maintenance costs.
|You (the seller) may have to accept less money.|
Studies show that the longer a house is on the market, the greater
the discount off the list price. Often a seller will accept less than
fair market value in order to sell because of an approaching deadline.
|There is the potential for appraisal problems|
The appraiser from your buyer's lending institution must agree
that the home is worth the asking price. If the appraiser believes the
price is inflated, the loan may not be approved.
Look to a CRS When You Need
As you can see, there are a multitude of factors that
determine the asking price of your home. Finding this price yourself can
be a long and difficult task. That is why thousands of satisfied
homeowners, like yourself, turn to a residential specialist. A
residential specialist has all the tools necessary to compute the fair
market value of your house quickly and accurately while allowing for
personal considerations (such as the date by which you must sell). Your
residential specialist can also confidently answer your questions about
listing, pricing and showing.
A residential specialist's goals are the
same as yours:
- to get you the most money possible;
- to sell your home as quickly as you can;
- to make selling your home a pleasant and profitable experience for
©Copyright 1999 Residential Sales Council All rights