Pricing Your Home right is the most important factor when selling. In fact, incorrect pricing is the number one reason that homes don’t sell the first time on the market. These tips will show you how to price your home to sell the first time around, and in this market it’s especially important to set the right price right up front.
Pricing your home correctly right off the bat gives you a better chance of netting more at close of escrow. The fact is, a good chunk of your showings will probably happen withing the first 30-45 days after listing. It is really important not to miss out on the best opportunities to sell because of bad pricing.
We call this going stale on the market. When a home is on the market for months without any offers it’s a good indication that it’s overpriced… not always but often. It’s important to gauge where your selling motivation is before you list.
Market value myth. The price you should ask for your home is dependent on how much you owe on your home or how much you need to buy your next house.
Market value fact. The price you should ask for your home is dependent on the current real estate market conditions, how much comparable homes are selling for in your area, and what a buyer is willing to pay for it.
Pricing Your Home – Questions to ask yourself before listing:
- Would I rather have a quick sale or top dollar? They usually do not go together. To get the fastest sale we usually compensate on the price making it very compelling to a buyer.
- On a scale of 1-10 with 1 being super motivated to move and 10 being not motivated at all, where are you? If you rank yourself 7 or above, maybe you should rethink listing your home.
Did you know that half of the listings taken don’t sell the first time around? That always amazes me because it really shouldn’t be. It’s a very logical transaction when you think about it.
You will get a bulk of your home showings within the first 30-45 days of your listing!
Would you believe me if I told you I can guarantee the sale of your home? You might be thinking… “yeah right”, but the fact is it’s pretty simple to do. If a home seller really wants to sell their home and his/her actions match their motivation level, here’s the formula for a guaranteed sale:
- Price. This one is on you sellers. Again, pricing your home right it is the number 1 factor that will decide whether it sells or not.
- Product. The home should show well for the price range it’s in. Ask yourself how it stacks up to the competition in that price bracket.
- Promotion. Partner yourself with a proactive REALTOR who will promote your home with traditional offline marketing as well as online.
I, as your Roseburg real estate agent am in control of #2 and #3 and I or any real estate broker needs to take responsibility for our part. You, on the other hand, as the home seller are in total 100% control of where you price the home.
A good REALTOR will assist you with providing a list of recent listing, pending, and comparable sold’s, and educate you on current Roseburg real estate market trends, but the final pricing decision is on your shoulders.
Pricing Your Home Is Important
You might find interesting when pricing your home. This chart shows the four price factors and showing points and how each point impacts the success of the sale and final selling price.
- Overpriced But Showable – Generates low buyer acceptance and maybe a few showings.
- Priced Right But Not Showable – Generates some buyer acceptance, but you may need to compensate the price or upgrade the home to make it compete better in the market.
- Overpriced & Not Showable – Good luck selling.
- Priced Right & Showable – Generates maximum showings, faster sale, and top dollar for the market. Generally, buyers are excited about homes that are priced right and are showable (inside and out).
Only the last point creates excitement, showings, and Top Dollar Sale for your property!
If your home is priced too low, you could lose money. If it’s priced too high, you might lose lose your buyer… Even worse, your home may not sell at all. Troy-
A good agent who knows the market will know if the home is too far over or under priced and will try to offer suggestions to the home seller. Many top producing agents will not take a listing that they feel is prices more than 10% over the current home value.
Pricing your home in a different markets.
If you are listing your home for sale in a seller’s market, that means there are more buyers buying homes than the inventory will support. This is a good thing for sellers. Pricing your home in this type of market takes a different strategy than pricing a home in a buyer’s market.
In a seller’s market we expect home prices to continue rising. Because of this, we are okay listing the home a little above our normal comfort zone because the market is sure to catch up.
If you are listing your home in a buyer’s market, however, your home pricing strategy is drastically different. In a buyer’s market we expect home prices to continue falling, which makes it even more important to set the right price right away.
If you are priced too high, the market will simply fall farther and farther below where your home is priced, causing you to sell for much less than you could have if you were priced correctly from day 1, or your home just won’t sell, causing you to postpone your moving plans.
In a seller’s market we strive to list your home competitively with the comparable Roseburg homes on the market. In a buyer’s market, you’ll need a compelling price. In other words a buyer would have to be crazy to pass up the deal you’re offering.
Of course a compelling price is not a give away price but to sell in a strong buyer’s market you’ll need to be the best buy on the block or you’ll be the one waiting for all the other homes to sell before it’s your turn.
Seller’s who over price their home often times get frustrated with the listing process, time on the market, and their Realtor when in fact the price is still their responsibility and much of the success of a sale hinges on that one point.
Justifying your home price to the world….
When you hire me as your real estate professional, it is my job to convince all the buyers in that price range that they should pick your home over all the other listings on the market. A home that is priced correctly makes the job of marketing much more rewarding.
We have a saying in real estate; “To get a home sold once… it needs to sell twice…
1. Once to other MLS Realtors
2. Then to their buyers!
Therefore…to get the most money in the shortest amount of time with fewer hassles, RMLS agents need to be excited about your home. Pricing your home correctly, according to current market conditions and values will achieve this goal. Excitement breeds enthusiasm which generates showings!
If you choose to have me represent you, I can help you to determine the very best listing price for your Roseburg home. My goal is simple…to get you the highest possible price in a reasonable time frame and to sell 100% of the listings I take.
To realize this goal I’ll do my best to help you understand how to analyze the market and how it affects the current value of your home. Why is this important? Because no one controls market value…be it a Realtor®, a company, or even the Seller!
As my customer’s attest and you can read on my testimonials page, I am a committed and passionate Real estate broker and prides myself on putting my client’s needs and priorities above my own. My determination and attention to detail allows my clients to receive first class service.
Interested in selling but want to know how much your home is worth? Contact me direct at 541-643-1131 or by email me here. Pricing your home can be difficult for a home owner sometimes, and I would be happy to help you out free of charge. Happy House Selling!