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Priced to Sell
Written by radu
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It’s time to sell your home and of course you want to realize the best possible selling price. You may be tempted to set a list price that is at the very top end of what the market might bear. Essentially, you’re hoping that the climbing prices of today’s hot market will rise up to meet your asking price during the term of your listing. This is a flawed strategy that could actually end up costing you money.
When setting the price for your home, it’s important to remember that the vast majority of homes sell within a few percentage points of the list price. If you overprice your listing, you could be discouraging potential buyers from even coming to take a look. Before coming up with your list price, you and your sales representative should thoroughly research the market you’re competing against. First of all, you must determine what’s currently for sale in the same price range. If your property is the only home offered in your price range, or if it is clearly superior to similarly priced homes, you have more leverage to ask for a top end price. On the other hand, if there are several comparable homes available that a buyer might consider, then you need to price it competitively to attract viewers.
Your Coldwell Banker salesperson can help by first researching the list price of other homes in your area with similar features. Your representative may even decide to tour some of these homes to see how well they show in comparison to yours. Knowing your competition is half the battle.
The next step is equally important. After sizing up your competition, your salesperson can also show you past sales and expired listings. This will show you what prices the market will and will not bear. Also, take note of when this activity occurred. If your local market has changed dramatically in recent months, you may have to adjust these prices to suit current market conditions. Your salesperson is the expert here, and can help you evaluate your market.
Keep in mind that as a seller, you’re in competition with other comparable listings for potential buyers. Your ultimate goal is to attract as many inquiries and viewers to your property as possible. Remember too, that smartly priced properties that are in high demand may even generate a bidding war or fetch a sale price that exceeds your listing price. As the seller, you’re in control since you have the power to refuse any offer that isn’t acceptable to you, regardless of what price you’ve listed it for.
Listing your home for a price far above your competition just reduces your options. Leave it to your sales professional to work the best price and terms for you at negotiating time. Don’t discourage buyers before they even have a chance to view your property. Get some expert advice from Radu and do the numbers to price it right. The end result might just be better than you ever imagined!
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July 30th, 2006
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