Pricing Real Estate – It’s More Than a Guessing Game

What is the most important factor controlling the sale of real estate? If you think its location, you might be wrong.

Location may have the most effect on value but price is without question the most important factor controlling the sale of real estate.  Anything will sell anytime, how long will it take depends on the price. – Keeping Current Matters

Priced Too High

Why do some homes stay on the market longer than other homes that are comparable? The short answer is that many homes are over-priced. This leaves the buyer with the impression that the seller is difficult, doesn’t really want to sell the property, or is out of touch with current market values.

Perhaps the seller thinks that they’re allowing room for negotiation when they price their home higher than the competition, but it works against them. Today’s buyers will only pay fair market value, and most buyers in today’s market are informed buyers. This means that they know the value of your home and will not pay more than it is worth.

Price It Right

There are several things you can do to make sure that your home is priced right in the current market. These include:

1. Ask an experienced agent to explain the local real estate market. The same home in a different area will be priced differently.

2. Know your home’s worth. This can easily be done by a licensed real estate professional. They can analyze what homes in your area have sold for and provide you with these reports.

3. Improvements don’t always equal a higher selling price. Sometimes, improvements are only maintenance.

4. Resist underpricing. While some have used this to invite bidding wars, it can work against you, and the buyer might think there is something wrong with the property.

The right real estate agent can help you to choose a price that you’re comfortable with and that gives you a competitive edge. Contact us, and we can sit down together to realistically take a look at your home’s value.