Establishing a Pricing Strategy
Understand Market Value
Pricing your home for the current market is important for maximum exposure and, ultimately, a satisfactory sale.
The existing pool of prospective buyers determines a property’s value, based on:
- Location, design, amenities, and condition.
- Availability of comparable (competing) properties.
- Economic conditions that affect real property transactions.
Factors that have little or no influence on the market value of a house include:
- The price the seller originally paid for the property.
- The seller’s expected net proceeds.
- The amount spent on improvements.
The impact of accurate pricing:
- Properties priced within the market range generate more showings and offers and sell in a shorter period of time.
- Properties priced too high have a difficult time selling.
Determine Your Home’s Market Value
An impartial evaluation of market activity is the most effective way to estimate a property’s potential selling price. We can provide a Comparative Market Analysis, which considers similar properties that:
- Have recently sold. This shows us what buyers in this market have paid for properties similar to yours.
- Are currently on the market. This shows us what kind of properties will be competing with yours for the attention of available buyers.
- Failed to sell. Understanding why these properties did not sell can help us avoid disappointment in the marketing of your property
Know The Dangers of Overpricing
An asking price that is beyond market range can adversely affect the marketing of a property.
- Marketing time is prolonged and initial marketing momentum is lost.
- Fewer buyers will be attracted and fewer offers received.
- The property attracts “lookers” and helps competing houses look better by comparison.
- If a property does sell above true market value, it may not appraise and the buyers may not be able to
secure a loan.
- The property may eventually sell below market value.
We can help you develop the right price for your property. Start by filling out our Home Valuation form and let us put together a pricing strategy that will work for you.