Pricing your Home for Sale
Determining price is based on a number of factors and must be done with care and with the correct information in mind.
Understanding Market Conditions
When preparing to sell your home, the current market conditions will impact your selling strategy.
In a buyer's market, the number of homes offered for sale is higher than the number of people looking to purchase the type of property offered.
In this environment, there is a high inventory of homes and homes remain on the market longer. Prices tend to decline. Buyers have many options and feel they have more time to review properties. Buyers feel they have more negotiating power during a sale. Well priced homes will still sell. Sellers can expect more conditions on offers, renegotiations regarding inspection issues and higher buyer expectations.
In a seller's market, the number of homes offered for sale is less than the number of people looking to purchase the type of property offered.
In this environment there is a small inventory of homes and houses remain on the market a short time. Many buyers may be pursuing the same property. Prices usually increase in this market and sellers feel they have more negotiating power during a sale. There may be multiple offers on properties. Overpriced homes will not get the attention that market priced homes receive. Buyers have less options in this market and may feel pressure to act quickly and to propose less conditions on offers.
In a balanced market, the number of homes on the market is relatively equal to the number of people looking to purchase the property offered.
In a balanced environment houses sell within a reasonable amount of time and prices remain relatively stable. Price fluctuations between properties may be more to do with buyer/seller motivation than a market adjustment. Buyers have many options but well priced homes will always attract interest. Equal negotiating power exists between buyers and sellers.
Reviewing your Selling Position
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 they 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