Three questions are crucial to helping determine how to price your home:
How does my home compare to similar homes that sold in the area?
This will help us identify the fair market value – the value an appraiser might give the home. You can price your home at whatever amount you want to, but if it won’t appraise for that price, there is a slim-to-none chance that someone will actually be willing to buy it!
How does my home compare to similar homes currently for sale in the area?
This establishes your “competition”- the homes potential home buyers will likely be viewing and comparing to your home.
How does my home compare to similar homes that didn’t sell in the area?
These are homes that sat on the market for some time and were withdrawn from the market. This lets us know what the market will not bear. This is the hardest to evaluate, but many times I have personally viewed these homes and can offer some suggestion as to why they didn’t sell. That is one advantage of using a knowledgeable, local realtor.
I will suggest a price range for you to list your home (for instance, between $1,199,900 and 1,209,900), and depending on your situation and our marketing strategy, we can narrow that down to a listing price.
Following are some important points to consider:
- Your home is only worth as much as someone is willing to pay for it. Although they are important to you, such factors as what you originally paid for the house or what amount of money you hope to make from the sale are irrelevant in determining a fair market value.
- Homes that start out overpriced just to “test out” the market lose valuable time and may not sell at all. First of all, the buzz that is created when a home first hits the market cannot be reproduced – agents get special email alerts, calls come in from the yard sign, and everyone rushes to schedule a showing! Secondly, buyers tend to think something is “wrong” with the home if it sits on the market a while or has significant price drops. Because of this stigma, these homes get shown infrequently.
Pricing is an art, not a science, and needs to be re-evaluated often as the market changes.
Staging is not a new concept, although such TV shows as Designed to Sell and Sell My House have brought to light the benefits of staging (doing small repairs or attractively arranging furniture to make a standout first impression and showcase a home’s attributes). I offer professional advice, based on my experience working with literally hundreds, if not thousands of sellers, on how to stage your home for the best results. The consultation may include suggestions on low-cost improvements that would significantly increase the value or marketability of your home, or it may be as simple as rearranging furniture to make a room appear larger.
It is ironic that it might cost you a few hours some Saturday afternoon and $20 for a gallon of paint and supplies to repaint that bright pink bedroom, yet a prospective home buyer would likely ask for a $500 paint allowance!
This form outlines the terms of the contract between the real estate Broker and you, the seller. It specifies such things as the listing term, listing price, and real estate sales commission. The listing agreement also explains how you will be represented.
This will give you an opportunity to disclose all that you know is wrong with/ or could negatively affect your property, as well as all improvements and updates you have made.
Showing Instructions Form
It is your house, and you are the boss. While it is in your best interest to make it as convenient as possible to show your home, it does not need to totally disrupt your life. We can discuss ways to strike an even balance, so you are not turning away potential buyers and at the same time you are not living on the edge of insanity trying to keep your house “show ready” at a moment’s notice.
I will provide you with an estimate of proceeds, so please have a quote of your mortgage payoff (s) handy, or the contact information and loan number(s) so that the Title officer can request the payoff amount for you.