Pricing Your Home
Understanding How The Marketplace Works Will Help You Get Your Home Sold Quickly
A correctly priced home will attract the greatest number of qualified buyers
Getting the best possible price from your home, in a reasonable timeframe, has a lot to do with pricing the home right.
To price right, you want to:
-Use price to help maximize the number of potential buyers who will view and consider your property
-Position your home well against the competition (all the other homes each home buyer might look at, based on their particular needs)
-To some extent, price your home comparably to recent similar sales (more important when your buyers are obtaining a mortgage, and the appraisal value needs to be in line with the purchase price for the bank to approve the loan)
Dangers Of Overpricing
If your home is priced too high, fewer buyers will look at it. They will be examining lists of suitable properties… if you’ve overpriced, buyers at that price range may find that other properties with more rooms, square footage, or amenities, in the same general area but possibly in other communities, are more attractive in comparison.
Buyers who are looking at homes with similar amenities to yours, in your neighborhood or in the surrounding area, may feel that the alternative properties are a better deal (priced lower).
If you reduce your asking price later, many buyers and their agents may not notice – they may be focused on new properties becoming available, rather than homes that have been on the market for a while. There may be some stigma attached to a property that has not sold for a while, and busy buyers may simply choose to pass it by.
Getting Attention
A home priced comparably to recent sales will usually get a reasonable reception by the market… in fact, some homes in lower price ranges get quick attention and numerous showings the first week on the market. Why? Because the agents who have buyers in that price range know what the homes should go for, and are quick to show their clients homes that are suitable before they are “snapped up”.
Pricing Right
The best way to get a good price for your home is to price right – at or slightly (1-2%) above the market – and have many agents and buyers look at the property. From that activity, you should expect to receive offers from buyers to whom your home has the right combination of affordability and suitability. Simply put yourself in the buyers’ shoes – if there are a lot of other people looking at the same property, and they want it, a ready, willing, and able buyer will not hesitate too long.
Pricing right is a very important part of marketing your home… I can assist you in understanding the market and setting a suitable price for your home.
Generating Interest
Your real estate professional should customize, for your property and needs, a marketing promotions plan that contains some of the following elements:
- Entry into the local Multiple Listing Service (MLS) - Real estate professionals who are members of the MLS can then find your home when locating suitable properties for their customers.
- Promotion to local real estate offices, and their top selling agents. By sending flyers to their offices, hosting a “broker’s open house” for real estate licensees only, and networking, your agent will make sure the top buyers agents in the area know about your property, so that when they are approached by a new client, their familiarity with your home will help get it on the buyer’s list for viewing.
- Promotion within the listing firm’s offices. We communicate new listings to fellow agents so they can be among the first to bring their customers to your home.
- Advertising to buyers, in newspapers such as the Asbury Park Press, free real estate magazines, postcards to targeted neighborhoods, and other forms of advertising promotion. The advertising needs will be determined by the type of buyers who are most likely to be looking for a property similar to yours.
- Internet advertising on public web sites such as Realtor.com, newspaper web sites, and company sites such as Illustrated Properties’ website.
- Public Open Houses, when appropriate to the home and market situation.
- A yard sign, when permitted by your community.
Suitability of each of the above activities depends on the property, the price range, the timeframe desired, and a number of other factors. The objective is to bring ready and willing buyers into your home. Your agent should discuss with you a plan that is appropriate to your home.
