A correct asking price is crucial to a timely sale
. That's where we come in. But how do we know how to advise you on price?
First, look at the prices brought by similar homes recently sold in the area, and compare their features to those in your home.
Then survey the competition, seeing what homes are currently on the market, how they compare to yours and how long they have been up for sale.
Next look at how the number of buyers compares to the supply of homes for sale.
Take stock of the direction of the market. Are prices rising or falling? Are homes selling quickly for the asking price?
Finally, we look at the incentives other sellers are offering, such as paying some closing costs, and what conveys with the property, like draperies or washer and dryer.
As you noticed, neither
how much you paid for your home
nor how much money you want
to profit from the sale affect the market value
of your home.
Avoid "Testing The Market"
Many times, sellers are tempted to price their homes a little high in hopes of getting more money from the sale. But often the opposite happens, and they sell – after a long time on the market – at a price below what the home would have sold for if it had been priced correctly at first. This is because most buyers look only at homes they can afford.
If a home is overpriced, many potential buyers don't bother to consider it because the asking price is above what they can buy a similar property for.
Buyers who do tour the overpriced home see that it doesn't measure up to others in the same price range.
By pricing the home close to market value, on the other hand, the sellers make the most of their best opportunity to sell to the home's true market during the highest traffic period – the first weeks after the new listing comes out. That's when real estate agents call in the buyers they have been working with to see what's new on the market.