How to set the List Price for your Home?
How to set the list price for your home…..Your homes first price should be its best price. If you are thinking of putting your home on the market in an area like Delray Beach Florida, where property values are going up and buyers are competing for homes. One may be tempted to try listing at a higher price “just to see if i can get it”. Well don’t do it!
When I meet with potential home sellers, I am confronted with this situation all the time. I always advise potential clients that pricing a home appropriately is critical to getting it sold quickly and for the best price. Statistics show that overpricing your home and then dropping the price several times while it languishes on the market usually leads to selling it for a much lower price than what you originally should have listed it for. Plus the longer a home sits on the market, the deeper the discount is likely to be off the original price.
Coming up with a price
When coming up with a price most homeowners consider what they paid for their home, the balance of their mortgage or the profit they want to make. However in the marketplace the reality is your home is only worth what the buyer is willing to pay for it. If you price your home to high potential buyers and their realtors wont want to look at and others will simply walk away without making an offer.
Many homeowners interview several Realtors to choose a listing agent. And many of these homeowners are tempted to pick the agent who suggests the highest price for their property. But Sellers, like buyers should beware. Homeowners must first consider the Realtor who provides the best Home Evaluation and explanation of how your home should be priced. That Realtor will be more likely to sell your home quicker and for a higher price than someone who simply tells you what you want to hear.
When I meet with a homeowner to discuss selling their home I include in my presentation concrete information about market conditions, comparative properties along with important information that affect pricing and the sale of their home. We go over recent sales in the neighborhood for similar homes during the past few months. The difference between the ask prices and the actual closed price of those homes. We also talk about homes that are currently on the market, that will be our competition in the marketplace. And we discuss homes that have been taken off the market because they didn’t sell. I also like to give potential sellers insight to what potential buyers are looking for and what they might be willing to pay for their home.
The home in which you live in is often the largest asset you own. It is very important to make an informed decision when pricing your home for sale and when choosing a Realtor to represent your home for sale. If you are considering selling your home, and would like a no obligation valuation of your home, feel free to contact me anytime. If you would like to get an idea of your homes value now, click here for my home-valuation tool.
Michael Weiss is a top producing Realtor Broker Associate with Fite Shavell & Associates in Delray Beach FL www.delraymike.com