Who says what my home is worth?
When it comes to pricing your home, you’ll find lots of “experts.” The neighbors may want you to set a high price, thinking it will make their homes more valuable. Your company may encourage you to set a lower price so the home will sell quickly and you can move to your new assignment. You might be thinking in terms of what you paid for your home, how much you’ve spent on it, or how much profit you want from it.
But who sets the price? When you put your house on the market, you set the asking price. But it is the market that determines the selling price. If the asking price is set correctly, the house is likely to sell fairly quickly. If set too high, the house may languish on the market, unseen by the right buyers.
Pricing It Right
- A correct asking price is crucial to a timely sale. That’s where we come in. But how do we know how to advise you on price?
- As you noticed, neither how much you paid for your home nor how much money you wish to profit from the sale affect the market value of your home.
Avoid “Testing The Market”
- Many times, sellers are tempted to price their homes a little high in hopes of getting more money from the sale. But often the opposite happens, and they sell – after a long time on the market – at a price below what the home would have sold for if it had been priced correctly at first. This is because most buyers look only at homes they can afford.
For a personal pricing consultation, please give us a call or send an e-mail question of your own. We’d like to help you price your home right from the start.
Why is it dangerous to overprice my home?
Sometimes sellers are tempted to test a higher price at first to see if they’ll be lucky enough to find an uneducated buyer willing to pay. Unfortunately, experience shows this “Why not?” pricing strategy rarely pays off. Instead, asking the right price from the start avoids the many dangers of overpricing.
The right sales price is based on several factors: size of the house and its special features and amenities, recent home sales, demand for homes in your area and prices of similar homes currently on the market.
Although you may have decorated lovingly or renovated extensively, those improvements may have only a small effect on the market value of your home. In fact, personalized decorating can even slow a sale unless the style has wide appeal.
- Here are 8 proven reasons why it’s dangerous to overprice your home:
If you are thinking of selling your house, give us a call or send an e-mail. We’ll be happy to maximize your return by helping you set the right price.
What factors do NOT affect my price?
Ultimately, a house is worth what someone is willing to pay for it – the fair market value.
- Some of the items we do not consider include:
While these factors are important to you, they have no bearing on the fair market value a buyer will be willing to pay.
My house is one of a kind. How do you put a price on a unique property?
How do you decide what price to ask for your home when it’s one of a kind?