How do I determine the best price
for my house?
Review the Comparative Market Analysis provided by your Realtor. Ask a lot of questions.
Is there one major factor that
determines price?
Recent solds are the true determining factor for market value.
Should I price my home similar to
those homes listed close by?
If these similar homes have been listed for quite some time and not sold, it shows that
buyers are not yet willing to pay that price. The actual solds are more accurate.
Should I price my house high and
test the market?
Pricing your home high loses the six important advantages when the listing is new and the
existing buyers in the market are waiting for market-priced properties. Those advantages
are: sign, MLS update, open house, office tour, advertising and MLS book.
How can overpricing my house
actually help the buyer?
Overpricing leads to the house being on the market for a long time. That leads to buyers
believing that the sellers are now desperate or that something is wrong with the house.
Either conclusion leads to offers lower than market value.
What is computer shunning?
If buyers want a home between $245,000 and $250,000, and your home is worth that amount
but you have overpriced it at $269,000, then the buyer never sees it because the computer
search only retrieves homes that are in the $245,000 to $250,000 price range.
Why not list high and hope for a
buyer who doesn't know prices?
Buyers buy by comparisons. They get to know values in one quick day. Even if a buyer did
not look at other homes and bought an overpriced home, the appraisal would be less and the
home sale would be discontinued because financing could not be obtained.
What if I need a certain amount of
money to be able to sell?
The market is just that — the market. If the market indicates houses in a specific
area are worth $150,000 to $155,000, that is all someone will pay. You need to then
determine where the balance of the money will come from if you need a certain amount.
Does the cost of my improvements
equal what I can get for them now?
Yes, if the improvements are similar to other homes around you. However, if you have
overimproved the house beyond the features offered in other homes in the area, the answer
is no.
Does time on the market affect
selling price?
There is a direct correlation between time on the market and price. Houses over 24 weeks
on the market may receive a full 10% below price.
How do I justify my price to the
buyer?
Allow the Realtor to justify price to potential buyers based on the Market Analysis of
sold properties.
What if the house sells in the
first weekend — Did I ask too little?
If the Realtor prices the home at market value, there are already buyers in the market
place who have looked at other properties and are waiting for market value homes. They
usually buy as soon as a good property becomes available.
I have some expensive improvements
to the house — Should I include them in the listing?
If you really want an improvement like an expensive chandelier — then take it down
now and don't even let the buyers see it. If you feel these improvements can help sell the
home quicker — include them.
Is selling my house an emotional
decision?
Yes. 78% of a decision to buy or sell anything is emotional. That is why Realtors can act
as third party unemotional negotiators.
Should I invest any money in the
house before I sell it?
Invest money in the home if the costs of materials are low, such as paint, and if you can
do the work yourself. Sometimes a small investment can mean a quick sale.
Do I really need to keep the house
clean for every showing?
Yes, make it as close to a model home as possible. Everyone wants to look at a home in as
perfect condition as possible and then imagine how they can make it their own.
Does advertising my house help it
to sell?
Advertising sells 8 to 11% of all homes. The important ad by the Realtor is not
necessarily your home advertised but rather similar prices and locations to "pull
in" calls. Only 4% of callers actually buy the home they call on.
What happens after we list the
house?
Here is an entire marketing plan to let you know exactly what happens at each step of the
home sale.
