When listing a property, we consider price to be the most important factor! Yes, home staging is helpful, and updating certain items is helpful. Curb appeal is king! “Location, location, location.” You’ve heard about all of these things I am certain. However, when we price a home we take all of that into consideration. Of course, we advise our clients on the items and improvements they can make that will increase their value or cause their home to sell more quickly, but all of that aside, we should all be chanting: “price, price, price”.
If you are looking for the insider secret on how to sell a home, you have come to the right place. We here at Spoon Real Estate know the secret: price it right! Here is a simple break down of what happens when you price your home at different levels:
- 12+% overpriced: Not showing!
- 6-12% overpriced: Shows some, no offers!
- 4-6% overpriced: showing some, low offers.
- Right on Target: Showing a lot, good and oftentimes multiple offers!
Many people feel like they have to overprice their home to leave room for negotiating. We absolutely don’t believe that at all. If you price your home on target, you will ultimately net more than if you overpriced your home waiting for someone looking for a bargain. If you overprice it long enough, they will get a bargain because you will become desperate to sell your house!!!
In many parts of the country right now, the real estate market is suffering. There is an oversupply of homes and a high foreclosure rate. Our market in Columbus, Indiana is pretty balanced. If you stage your home nicely and PRICE IT RIGHT, you should be able to sell your home in a reasonable period of time.
When you take a well-priced home and market it efficiently, a sale in a reasonable period of time is the result most of the time. Add a seasoned professional to make sure you have indeed priced it right, and you are in great shape.
So, how do you know if your Realtor has done a good job coming up with a price for your home? They should be using homes that have sold in your geographic area or neighborhood within the last year (six months is best), that most resemble the qualities and amenities of your home. Simply averaging the sales prices won’t work. There are adjustments that need made to ensure that the homes have been compared properly. Pools, sun rooms and screened porches, extra bedrooms, finished basements, fences, fireplaces, garage size, and quality of construction are just a few of the items worth taking into consideration.
The final determination of price is usually a comparison of other active properties. In other words: what is your competition? Stay on top of what other homes around you are selling for and what they are listed for. The buyers in your market will certainly be checking out the other options!
For how, happy house selling!