How to Price Your Home

 

 

Pricing your home to sell, and also make a profit

The asking price affects whether you will make a profit, how much profit you will make, and how long your home will be on the market. Your real estate agent’s knowledge of the overall market, the local market, and what is and is not selling is invaluable in helping determine the price. The goal is to find a price that the market will bear but won’t leave money on the table.

Time is not always on your side when it comes to real estate. Time is probably the biggest determinant in whether or not you see a profit, and how much you will profit.  It has been shown that the longer a house remains on the market, the less likely it is to sell for the original asking price. If your main goal is to make money, think about a price that encourages buyer activity, which equates to a fair market value.

Value vs. Cost.  It is very important that you do not confuse value with cost; that is, how much you value your home versus what buyers are willing to pay for it (cost).  Pricing your home to sell in a timely fashion requires some objectivity.  You can’t place too much emphasis on your home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.  And although it makes sense to include the amount of money you have spent on updates in figuring the price of your home, buyers not willing to pay for this will mean that your home value doesn’t equal the cost, especially if the value you have placed on your home doesn’t equal the market value for your area.

Keep things simple.  Make things easy for the buyers. Remain flexible with showings whenever possible.  Your agent can only schedule showings on buyers’ schedules.  Make every effort to comply with showing requests, if possible.  Also, avoid adding contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.

tmcqueen@mainedge.com
 Call Terri (405) 250-9343