Pricing strategies to sell your home fast
The first and most crucial step to sell your home fast is to price it right according to your local market. The market value of a home is, and only is, the price someone is willing to pay for it. The amount that was paid the last time it sold, the amount needed to retire the current mortgage, or the price we might want or even need to get is not relevant in determining current market value.
The visual to the left shows what percentage of the current buyers market you can expect to get depending on where you price it. Notice that overpricing even by 10% can result in only 30% of the buyers who might buy your property actually seeing it. Obviously, pricing below market value will attract the most attention. However, in order to sell your home fast it is always recommended to price your home at market value.
What is a “comp”?
Realtors use “comps” to assist in determining the value of your current home. This includes looking at recently sold homes nearby and similar to yours. Those prices are the most important factor in determining the value of your home. Other “comps” include currently for sale homes and homes that are under contract or pending. Under contract and pending are homes that were for sale and the buyer and seller have agreed on a price but have not yet closed. This normally means they are in the process of inspecting the home and having the lending bank conduct its’ due diligence prior to approving the loan.
You might also like: Home staging tips for sellers
In addition to reducing the number of buyers who see your home, overpricing a home to start with may actually lower the price you eventually receive. There can be a perception by buyers and their agents that a home that has been on the market for a long time must have something wrong with it. The assumption is that if a home were really a value, it would have sold already. Additionally, buyers may believe that the homeowner may be getting “desperate” and therefor will be more susceptible to accepting a low offer.
“The value of your home is determined by what the market is willing to bear, not what we might need or want to get.”
Time to price your home:
You and your Realtor should first agree on what the price is worth, based on the recently sold comps. The next step would be to determine the list price. You’re Realtor can tell you the market conditions in your area (declining – appreciating-stable) and would recommend a range based on that information. This is where other similar and nearby homes for sale come into play. This is your “competition”. Your list price should position your home as the top value when price and condition are taken into account.
For example, you don’t want to be priced the same as your neighbor whose home is very similar but has a swimming pool if your home does not. Buyers will perceive your neighbors’ home as the value. Your value propositions should be “more house for the same price” or “same house but a better price”. This will ensure that existing buyers in your market, as well as new buyers coming to your area, see your house and keep it on their “must see” list.
You’re local Realtor is an expert in your market, and is an invaluable source of information when it comes to pricing your home to sell quickly.Curious what your home might be worth? Find out in 15 seconds!