Wednesday, September 23, 2009
Helpful Hints from Heather and Top 5
Pricing Your Home to Sell
Most homeowners have an emotional connection to their home and, understandably, feel it deserves top dollar when sold. But even though everyone wants to get the most money for their home, especially in today’s challenging economic times, decisions made regarding the listing price cannot be made in haste. All too often, listing your home at a price that is too high can cause it to languish on the market and wind up selling at a lower price than would have been realized had it been priced properly in the first place.
To help foster maximum profits for your home, here are several suggestions for establishing a fair, competitive and marketable sale price:
- Square footage - Total square footage is an important consideration when establishing a home's sale price, but this is usually just a starting point for buyers who will use it to narrow down the field, but make an actual purchase decision based on many other factors.
- Location within the community - Quiet cul-de sacs, golf or water frontage, lots that offer privacy, etc. are value-adds that can justify a higher sale price over other homes in a community…or be leveraged as an advantage against competing listings.
- Views ... or lack thereof - Whether it is the ocean, a downtown skyline, the mountains, water or some other desirable landscape, buyers are willing to pay a premium for views and a home should be priced accordingly. Just be realistic - views that can only be seen from the second-story bathroom window don't count.
- Upgrades and features - For a home to sell quickly at the desired price, it must be "finished" with as many structural and interior design upgrades as possible. Any functional or beautification enhancement to a home are key considerations in establishing a home's true value and strategic sale price.
- Community amenities - Guard-gated communities or those with amenities such as a clubhouse, swimming pool or fitness center are elements that raise a home's price per square foot. When pricing a home without these benefits, know whether you are competing against other homes that do offer such value-adds so that you can price your home as aggressively and competitively as possible.
- Comparable sales - Don't price your home based on price per square footage of other home sales in your community six or more months ago, as these don't offer a realistic portrayal of current market conditions. Focus on prices of active listings to hone a competitive pricing strategy.
- Professional appraisal - Want to sell the home quickly? Price it at or below the appraised value as buyers are educated, are shopping deals, and will recognize your fair price and be more apt to pay it with less haggling.
- Current mortgage conditions - Lenders now require higher credit scores and higher down payments, which can cash-strap buyers holding out for the best deal possible. Savvy sellers will understand the mortgage industry's impact on the buyer and will price accordingly.
There are several other factors involved in choosing the right listing price for your property. Top 5 in Real Estate Members are experienced in reviewing the specifics of a home in order to arrive at the best possible price…a price that maximizes profits and moves your home off the market before price reductions become necessary. Please email Heather @ firstname.lastname@example.org for further details and feel free to forward this article to members of your social network who may also benefit from this information.