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How To Price Your Home To Sell...
You don’t need to be 'Guru' to know when the price just isn’t right.
Just ask Roger Hall from Hallmark Realty.
“Sellers have to keep in mind the location. Who are going to be the likely buyers?”
Some sellers will list their home for more than market value but eventually have to accept the market reality and chop $$$ off the price.
“I do not accept the old adage: location, location, location is everything,” says Roger, “People buy and sell everywhere. Although the location is important, so is the condition and price.”
Home pricing is more of a science than an art, but many homeowners price with their heartstrings instead of cold, hard data. Here’s why crunching the numbers is always the better route to an accurate home price.
The Pitfalls of Overpricing
Homeowners often think that it’s OK to overprice at first, because — who knows? — maybe you’ll just get what you’re asking for. Although you can certainly lower an inflated price later, you’ll sacrifice a lot in the process. The most obvious damage: A house that remains on the market for months can prevent you from moving. Already purchased that next home? You might saddle yourself with two mortgages.
The Pricing Traps
It’s easy for homeowners to stumble into two common traps:
1. Confusing actual value with sentimental value — how much they assume their home’s worth because they lived there and loved the time they spent there.
2. Assuming renovations should result in a dollar-for-dollar increase in the selling price. Be careful with upgrades – most of the time all you need is new carpet and paint.
The Right Stats for the Right Price
The best pricing strategy? Consult a real estate agent, who will use something called comps. (also known as “comparable sales”) to determine the appropriate listing price. Hallmark Realty will seek out near-identical homes with similar floor plans, square footage, and amenities that sold in the last few months.
Once we’ve assembled a list of similar homes (and the real prices buyers paid), we will give you an accurate estimate of what you can expect to receive for your home. After crunching the data, we will work with you to determine a fair price that will entice buyers.
Knowing When the Price is Too High
Once your home is on the market, we will start accumulating another set of data that will serve as the ultimate price test: how buyers react. There’s an easy way to tell if you’ve priced too high: if we have no showings, it’s way too high.
There are many other incentives to help produce a sale, for example, with a $5,000 seller’s assist, applied directly to closing costs, or the seller offers to pay for all closing costs...
When it comes to finding a buyer, pricing your home according to data — and the right data, at that — is crucial to making the sale.