PRICE is the MOST IMPORTANT FACTOR in the Sale of Your Home…
The consequences of making the wrong decisions are painful. If you price your home too low, you will literally give away thousands of dollars that could have been in your pocket.
Price it too high, and your home will sit unsold for months, possibly developing the reputation of a problem property and buyers will think there is something wrong with your home… agents call a home that has been on the market for an extended period of time “Stale”.
FAILURE to understand market conditions and pricing your home incorrectly could cost you thousands of dollars. This can also cause your home not to sell and NOT allow you to go through with your plans.
Setting the proper asking price for your home is the single biggest factor that will determine the success or failure of your home sale.
You simply cannot afford any “Guesswork” in this critical step!
A Special Report Prepared By:
Evan Greene
[email protected]
www.ReMaxEvan.com
(631) 724-5100 office
(631) 848-8000 cell
There are 5 Essential Ingredients That Comprise the Formula for Determining the Value of Your Home
1. Location
The location of your home is the single greatest determination of how much your home will be worth. The better the location – the higher the price. School districts, high or low traffic, accessibility to major roads and shopping – all must be considered. Your land value has the greatest effect on value.
2. Size of the Home
The square footage of your home plays a significant role in determining its value. If there are similar homes with comparable locations and in similar condition, the larger home usually has greater value. Layout is also important — such as master bedrooms with private baths or kitchen views into the den. Bedrooms, bathrooms, garages, lot size, and basement all play a role.
3. Condition
The general upkeep and presentation of your home are critical to obtaining top value. Homes with updated kitchens, bathrooms, roof, windows, siding, and landscaping will bring higher value. Décor matters, too — if buyers feel they must invest a lot post-purchase, it reduces your home’s appeal and price.
4. Market Conditions
Recession, inflation, interest rates, mortgage availability, competition, and the public’s perception of the economy all impact your home’s value. Recognizing these conditions is essential to pricing correctly.
5. Asking Price
Only after considering location, size, condition, and market conditions should you arrive at a price. The right price attracts the right buyers and brings the highest possible offer. A correct price means a quicker sale and more money in your pocket.
Benefits To Proper Pricing…
Faster Sale
Proper pricing results in a faster sale, saving on mortgage payments, real estate taxes, insurance, and carrying costs.
Less Inconvenience
Showing a home takes time and effort. Proper pricing reduces the number of showings needed to sell.
Increased Sales Agent Response
Agents are more motivated to show well-priced homes to their buyers.
Exposure To More Prospects
Pricing properly expands your pool of potential buyers who can afford your home.
Better Response From Advertising
Buyer inquiry calls turn into showings when the price is attractive.
Higher Offers
When a property is priced right, buyers are less likely to make lowball offers.
More Money To Sellers
Correct pricing leads to higher selling prices and less time on the market—putting more money in your pocket.
Drawbacks To Overpricing…
Reduces Activity
Agents avoid showing homes priced too high.
Lower Advertising Response
Buyers focus on better-priced homes.
Loss of Interested Buyers
Other homes in the same price range will seem like a better value.
Attracts The Wrong Prospects
Buyers expect more and will be disappointed.
Helps The Competition
Overpricing makes competing homes look like better deals.
Eliminates Offers
Some buyers won’t make an offer at all if they feel it would insult the seller.
Cause Appraisal Problems
Appraisals are based on recent comparable sales. If your price is too high, it may not appraise—and deals can fall through.
Less Money Goes In Your Pocket
Overpriced homes usually sell for less after sitting on the market too long — plus added carrying costs.
Pricing Guidelines
- What you paid for the property does not affect its value.
- The amount of money you need to get out of the sale does not affect its value.
- What you think it should be worth does not affect its value.
The value of your property is determined by what a READY, ABLE & WILLING BUYER will pay for it on the open market — based on comparable recent sales.
BUYERS DETERMINE VALUE!
DO NOT automatically list with the agent that gives you the highest price…
As Consumer Reports stated:
“Expect the Real Estate agent to suggest a price range, but don’t let that frame you in. Be aware that some agents will, at first, suggest a very handsome price. Then, after they have the listing and the house hasn’t sold, they’ll come back with a pitch to lower the price.”
FACT
On average, buyers inspect 12 homes before making an offer. That means 11 other homes are competing with yours. In today’s market, buyers are more informed, and competition is fierce.
- We will work together to make sure your home stands out.
- Your job: Make your home bright, shiny, and clean — as close to a “model” home as possible.
- My job: Market your home to the world for maximum exposure.