|
The right price is the key to selling your home.
Listing your home above the rest of the market helps everyone else but you.
David Fletcher from Inman
News points out the "Good News and Bad News" of not pricing your home to sell.
Fletcher lays out this scenario:
-
Similar homes in your neighborhood sell for $200,000
-
You just spent $5,000 upgrading your home.
-
You need $10,000 for a down payment on another home
-
And you'd like to add in the realtor's commission of $10,000.
-
And then we all know that the buyers agent will counsel them to "make an
offer" so you need to add another $10,000 to the price
-
Total asking price.....
$235,000
The Good News says Fletcher, is that you will get a lot of showings BUT the Bad
News is that "they will be
showing it as what is called "sell against" -- to help build a value
story for the homes down the street, which their prospects will actually
purchase for around $200,000."
Most agents will not even show the home to customers in the $200,000 price range,
which means your house might be on the market longer than you want and "the
longer the home is on the market in an overpriced condition, the harder it will
be to sell." says Fletcher.
"Here's where this gets a little sticky
when it comes to price," says Fletcher, "Usually, when the agent suggests a
price the seller becomes
flabbergasted and insulted, wondering how the agent could dare mention such a
low price."
"It is the same
feeling the buyer gets when the
agent mentions the asking price of the same home -- except they feel insulted
by the seller, not the agent."
A Comparative Market Analysis (CMA) can help in this
situation. This report tells you what
similar homes are selling for, as well as what they are listed for and how long
they have been on the market. It's a good way to find out what buyers are
actually willing to pay for your home.
Everyone knows that eventually the
price will be lowered.
"The seller and the agent know it is only a matter of time before the price is
lowered," says Fletcher, "whether that's if it doesn't sell in two weeks, or
thereafter. This is an OK approach in a market that is moving up, but in
today's market ... not so good."
Your goal is to get the best price for your home but what you need is to
attract qualified home buyers to your home by setting a realistic price.
Read the full article at Inman News.
 photo credit: woodleywonderworks
Posted on June 08, 2011 10:38:58 by  Scott.Shields
View my profile
This post has no comments awaiting moderation. |
Posted in