Three factors come into play when selling your home: Presentation, Price and Marketing. 

 

Determining price is based on a number of factors and must be done with care and with the correct information in mind.

 

1. What are the market conditions? Is it a seller's market, a buyer's market or a balanced market? Are there unique market conditions for the home style or neighbourhood of the home?

 

2. What is the sale price of comparable homes in the very recent past?

 

3. What competition exists with other active homes on the market?

 

 

Market Condition	What It Looks Like	The Impact on You the Seller
Buyer's Market: The supply of homes on the market exceeds the demand.	High inventory of homes. Few buyers compared to available inventory. Homes remain on the market longer. Prices tend to decline in this market.	Your home may take longer to sell. You will have to be priced 'in the market' to be noticed. Less negotating power during a sale.
Seller's Market: The number of buyers wanting to buy exceeds the supply of homes on the market.	Smaller inventory of homes. Many buyers. Homes sell quickly. Prices usually increase in this market. You will see multiple offers on one property.	You have more negotiating power to gain a higher price for your home. However, it is important to remain priced 'in the market' to attract buyers.
Balanced Market: The number of homes on the market is equal to the number of buyers wanting to buy.	Homes sell within a reasonable amount of time. Prices are generally stable. Homes with better overall features, location, finishings, etc will attract more attention.	Buyers have many options however well priced homes will attract interest. Equal negotiating power between buyers and sellers.

What does it mean to be 'in the market'?

Pricing based on the recent area sales and evaluating what people are actually purchasing in preparing your list price.

 

Evaluating recent comparable sales is very important. Often folks see the list price of homes but may not be aware of price reductions, final sale price figures or expired listings. This can create a false sense of home value. Carefully evaluating comparables sold homes is crucial. Also important is to carefully consider the time frame of the review. Depending on the volatility of market conditions it may or may not be appropriate to compare properties sold six months ago to today.

 

Once you understand what other homes have sold for, it is also important to review the competition. Are there 2 other properties like yours on the market? Are there 30 comparables? Review their features and understand where your listing comes into the mix. It can all change tomorrow when more listings come on the market so keep up to date on the market in your area and continue to evaluate your position.

 

Lastly, have a look at comparable expired listings, those that just didn't sell and were taken off market. Review why the didn't sell and what can be learned.

 

At the end of the day, the value of your property is determined by what a buyer is willing to pay in today's market based on comparing your property to others sold in your area. The buyer always determines value. Unfortunately, what you paid, what you need, what you want, rebuild cost, what the neighbours said or even what various Realtors may give as an opinion do not affect the value. It is up to the buyer. To that end, show off your house!

 

A home that is priced right and shows very well creates excitement and activity. Now to make sure everyone knows your home is on the market. That's where the marketing campaign comes in.

 

For a free comparative market evaluations, contact me today.