How to Price Your Home So it’s in The Market To Win It?
As a home seller, here is what it means to price your home so that you are in the market to win it!
Buyers usually look online first and pick about 10 homes that are similar to yours. They’ll choose 3-6 homes to view in person based on several factors such as; price range, photo appeal, neighborhood, and the emotional appeal. If your home is one of the 3-6 buyers choose to view, you are in the market! If it’s not (meaning not enough showings) then you are out of the market! If your home is out of the market you need to make changes/adjustments to bring it back into the market!
If your home is not getting showings or if it is getting showings but not getting any offers you need to adjust your price. A common mistake to avoid in this regard is the incremental price reductions. By doing that you will keep chasing the market down and end up always being behind the curve instead of ahead of it. When looking at similar competing homes you always want to be priced ahead of the market in order to win it.
Lastly, since the market keeps changing, sometimes within a months time, it is imperative that you keep getting automatic updates so that you have your pulse on the market at all times.
Below are some commonly asked questions regarding pricing, offers and preparing your home for sale.
Q: How is the price set?
A: It’s crucial to price your home appropriately based on current market conditions. Since the real estate market is continually changing, and market fluctuations have an effect on property values, it’s imperative to select your list price based on the most recent sales in your neighborhood.
Q: What are the two most important factors when selling a home?
A: Even in a down market, price and condition are the two most important factors in selling a home. So, the first step is to lower the price. Also, talk to your realtor and see if there are cosmetic improvements you should do
Q: How do you prepare a house to sell?
A: You always want to put your house’s best face forward in order to maximize its market value. Short of spending a lot of money, there are several steps we recommend take to make your house shine and the buyer to fall in love with it.
Q: What is the best time to put your house on the market for sale?
A: Because many buyers prefer to move in the spring or summer, the market starts to heat up as early as February. Families with children are anxious to buy so they can move before the new school year begins.
With the internet and social media though, buyers are now “in the market” year round and in fact, are shopping even during the winter time when there is less competition.
The market slows down in late summer and picks up again in the fall. November and December have traditionally been slower months, although some astute buyers look for bargains during this period.
Q: What is the difference between market value and appraised value?
A: Appraised value is a certified appraiser’s opinion of the worth of a home at a given point in time. Lenders require appraisals as part of the buyer’s loan application process;
Market value is what price the house will bring at a given point in time. A comparative market analysis is an informal estimate of market value, based on sales of comparable properties, performed by a real estate agent or broker.
Q: Is a low offer a good idea?
A: A low offer in a normal market will most likely be rejected immediately, in a buyer’s market a motivated seller will most likely counteroffer.
Full-price offers or above are more likely to be accepted by the seller. But there are other considerations involved:
* Is the offer contingent upon anything, such as the sale of the buyer’s current house? If so, a low offer, even a full price offer, may not be as attractive as an offer without that condition.
* Is the offer made on the house as is, or does the buyer want the seller to make some repairs or lower the price instead?
* Is the offer all cash, meaning the buyer has waived the financing contingency? If so, then an offer at less than the asking price may be more attractive to the seller than a full-price offer with a financing contingency.