Pricing a home is not rocket science.
The biggest fear for most sellers is.
“Am I leaving money on the table?”
Deciding on the best price for your home is one of the most important and most challenging steps in the selling process. Unfortunately, amongst the sea of Realtors, it is difficult to find an agent who will give you the honest analysis of the price of you home. Now! I am not saying that an agent who prices your home poorly is being dishonest, it is just true that there are agents who are more interested in listing a house at a price the seller is comfortable with rather than giving the correct advice to price the home to sell.
We are interested in helping you sell your home. We look at 3 things, first is the CMA (Comparative Market Analysis), a look at the Recent sales of comparable homes, which gives us an indication of what a buyer would be willing to pay in today’s market (The Market Value). Nowadays every buyer has this information at their fingertips so, if your price is not right, buyers can move on to the next home without ever seeing your home for themselves. If they do ignore the marketed price they will make you an offer in line with Market Value that you might be offended by.
The second thing to look at is Influencing Factors, such as consumer confidence, the state of the economy, Interest rates, all being important considerations outside of our control.
And lastly, your motivation and the impact of a comprehensive marketing plan. This brings us to pricing strategy, and they are not all created equal…
Which strategy is right?
Let’s take a look at how Price also works together with marketing, and find the perfect strategy to sell your home.
LETS JUST TEST THE WATERS…
You may think that it is a good idea to start by pricing your home for a premium price; usually slightly above market value, to see if a buyer is interested in paying top dollar. This seems like a good idea on the face of it, but reality is, a home attracts the most attention, excitement, and interest when it is first placed on the market. A home that is priced right, and well marketed, when first listed is positioned to generate the level of interest needed to sell the home for the highest amount possible. Improper pricing at that critical initial stage misses out on the peak interest period (about 3-4 weeks) and can result in the home staying on the market for a longer period and getting lower than market value offers.
PERSONAL SENSE OF VALUE
How about if you just feel your home should sell for more than the market indicates. You may have done some upgrades, or you built the home, and you are convinced your home is worth more than all the houses around you. You could be right; we would take a deeper look at the data to confirm or have a certified appraiser do a full appraisal. Just remember that it’s not personal, it’s not an attack on your home or sense of style, it is simply an analysis of the data to develop an educated opinion of what a buyer would pay for the home in today’s market.
PRICING IN NO-MAN’S LAND
One more thing to look at is, is your home move in ready, needs no updating, everything is in top condition, and well maintained, or are there some things that are potential projects for the buyer to do. A lot of buyers do not want to take on a project, they would rather find a home that is move in ready. And many sellers want to avoid costly repairs, and still want top dollar for their home. It is not possible to have it both ways, it comes down to your motivation as to which is going to be the best way to price as a home that has a few projects or bring your furniture and move in. Obviously the turn key option will bring a higher price, but you could end up spending the additional profit to get that price.
GET HONEST WITH YOURSELF.
CREATE A PRICE STRATEGY…
THE EASY WAY OUT?
Price is probably the most contentious subject realtors and sellers discuss. A common sentiment, one that several of us used to hold, is that dropping the price of a home is the easy (ie. lazy) way to sell a home. In some cases this is the correct sentiment. The case in which this sentiment is correct is when the home is not presented well to the market whether it is photos, presentation, or the remarks on the home. If a realtor is not willing to exert the necessary effort to present your home well to the market place you should not drop the price. However, if a realtor bends over backwards to present your home well to the marketplace then we can know that the only variable remaining that is keeping your home from selling is the price. Presenting your home well is the only way to know for sure you are not leaving money on the table.
LISTEN TO THE MARKET
Pricing a home is not a guessing game. The market gives clear directions on what a home should be priced at most of the time. It can be an extremely emotional process that often feels like groping in the dark. We don’t want you to leave money on the table, but we also don’t want to give you wrong expectations because that typically only leads to frustration and the fracturing of the seller-realtor relationship. We can provide you with the data necessary to determine the proper price of your home and we will do everything in our power to present your home to the market in the best light possible. Honesty and transparency on the data is the key to pricing right and getting your home sold.
DON’T FIGHT THE MARKET,
LISTEN TO IT
AND GET YOUR HOME SOLD.
Lastly, it’s not always the PRICE, contrary to what a lot of Realtors will tell you, that causes your home not to sell. In some instances, it is just that the home was not marketed correctly, it had poor photo’s, or inadequate advice was given on presenting the home. If a Realtor has done all there is to do to present your home to the buyers, through effective marketing and great photo’s, then we must look to the price as the reason for the home not selling. When in doubt listen to the market as it will let you know if you have the home priced correctly.
We will provide you with all of the information available to help you arrive at an educated market value for your home. Then we will do everything in our power to present your home to prospective buyers in the most receptive manner, and work with you toward the goal of selling your home.
If you still want, or need, to sell your home all is not lost. Make sure you don’t rush into relisting your home the same way as before. Remember, the first 90 days are crucial so make sure the photos, presentation, and pricing are optimal. If possible try to wait 30 days before getting the home back on the market as this gives ample time to fully evaluate what happened last time and allows the days on the market counter to reset.
On a more personal level we understand you are going through a lot of emotions. Anger, fear, doubt, and confusion which can lead us to make bad decisions based solely on how we feel at the time. Give yourself time to breathe, remain calm and levelheaded, then find the information to give you the knowledge to make the best decision moving forward.
Keep a level head.
The last thing you need to do is allow your current emotions to dictate your next decision. Don’t just put your head in the sand. Making a decision solely based on the anger and frustration of the moment can lead to greater frustration in the future.
Knowledge is key! With the right information you can successfully move forward and sell your home. Study the photos that should be taken as this is the first showing of your home. Study the presentation, both how and when your agent should market your home, the staging of your home, and know the price strategy to make sure you do not leave money on the table enabling you to quickly and successfully sell your home
Evaluate your previous listing.
Taking the information at hand here, look at your previous listing and ask “Would I be interested in this home?” based on what you read and see.
Fixed what was wrong.
Don’t give up! You can attain your goal. We hope you find the information on this site useful and hope it empowers you to make the best decisions for you and your family. Contact us, a team that specializes in getting you back on track and successfully selling your home
ARE YOU READY TO GET YOUR LISTING FIXED?
I’m John Bradshaw, REALTOR
Part of the Brit Brothers Team
From NextHome Advisors.
Allow me to re-list your home
correctly and get you results!
This is the information I will need to start re-listing your home properly.
The Brit Brothers Team want to partner with you to help sell your home. To talk with us about what we think went wrong, and what we can do to assist you, in selling your home. Send us a message using the form below and we will contact you no later than next business day. Or call 239-224-0901 to speak with us directly.