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Proper pricing is dependent on several
factors, the most important being recent comparable sales in
the neighborhood, what is currently on the market in
competition with your home, and the condition of your home.
These factors can change rapidly within weeks or months, so a current
market analysis on your home is crucial to pricing your home
correctly. Price it too low, you lose some of your equity,
price it too high you lose potential buyers.
The most common mistake is over-pricing.
Overpricing your home means it sits on the market longer,
and one of the first questions a buyer usually asks is how
long a property has been on the market. The longer your home
has been for sale, the more the buyers are inclined to
believe something is "wrong" with it, and the lower the
offer will be.
What Does
Not Affect a Home's Value
-
What you paid for
the home.
-
What you put into
your home in remodeling or decorating. These are
features which really only enhance a home's desirability
and make it sell faster.
-
The amount of cash you need to buy your
new home.
-
What you say your home is worth.
-
What I say your home is worth.
-
What another agent says your home is
worth.
-
What an appraiser says your home is
worth.
What Does
Affect a Home's Value
-
Location of the
home.
-
Major improvements
on the home (pools, covered patios, etc)
-
Recent comparable
sales within the last six months
-
Current
competition on the market
-
What a
sophisticated buyer is willing to pay based on his
comparison of your home with others currently on the
market. Agents and sellers set list prices, but
buyers determine value!
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