Determining Your Property Value
We are not the ones who determine how much your home is worth. The market does. It tells us where to price your home to sell and how to approach the marketing of your property. Here are the factors that affect the value:
Location | The location is the single most important factor in determining the value of your property.
Condition | The condition of the property affects the price and the speed of the sale. As prospective buyers often make purchases based on emotion, first impressions are critical. We will be able to help in optimizing the physical appearance of your home to maximize the buyer’s perception of value.
Competition | Prospective buyers are going to compare your property - both the condition and the price - to other available listings in and around your neighborhood. Those buyers will determine value based on properties that are listed or have recently sold in the area.
Timing | Properly values are affected by the current real estate market. Because we cannot manipulate the market, we will collaborate on a pricing and marketing strategy that will take advantage of the first 30 days your property is listed. It’s the window of opportunity when buyers and their agents discover your property and are most likely to visit and make offers.
Price | Pricing your home properly from the outset is the deciding factor on how long it will take to sell it.
When determining a price, it is very important to price your property at a competitive market value. Buyers make their pricing decision based on comparing your property to similar properties sold in your area.
Common Seller Questions
ANOTHER AGENT SAID THEY COULD GET MORE MONEY.
We hear this almost every week.
It is usually told to the seller by an inexperienced agent. Unfortunately, these agents are more excited about the prospect of taking a listing, rather than getting it sold. Most are afraid to tell the truth and risk upsetting the seller, and the rest are unable to figure out the right price for the property due to lack of experience and expertise.
The typical plan for a traditional old-fashioned real estate office is to take the listing - regardless of price - then work on wearing the sellers down until they agree to lower the price. It’s a shame as this practice is the #1 reason that listings expire after being rejected by the market and never sell - leaving an extremely unhappy seller behind.
CAN WE LIST HIGH, AND JUST COME DOWN LATER?
This is the #1 mistake that traditional, old-fashioned agents make with sellers, and in almost 50% of the listings NOT SELLING AT ALL. We certainly understand you would like to list high in order to leave room for negotiation.
Have you considered the major problem that this creates for you as a seller?
Most people won’t bother to look at a property that is priced too high. Would you rather have us negotiate multiple offers to get a higher price or not have an opportunity to negotiate any offers at all?
We find sellers drastically overestimate the amount of room needed to negotiate. Bottom line: Get it priced right up- front, and you are rewarded with a higher list/sales price ratio and more money in your pocket at closing. Over-price your home, and you risk being rejected by the market and never selling.
CAN’T I JUST SELL IT “AS IS”?
Of course, you can, but you will have fewer showings and receive a lower sales price than if you had completed repairs. Buyers’ repair estimates are usually very high and sometimes double the actual cost of the repairs if done by the sellers. Buyers will deduct the inflated prices of those repairs and updates and subtract them from the offer price.
Its Effect on the Market
A property generates the most interest when it first hits the market. Most offers are made in the first few weeks
Time on Market
- The number of showings is greatest during this time if it is priced at a realistic market
- Starting too high and dropping the price later misses the excitement and fails to generate strong
- Many homes that start high-end up selling below market
- Historically, the first offer is the best one.
Attract Buyers with the Right Price
Pricing your property COMPETITIVELY will generate the MOST ACTIVITY from agents and buyers.
Pricing your property TOO HIGH may make it necessary to DROP THE PRICE below market value to compete with new, competitively priced listings.