With your
"Ideal Sale" in mind, you will probably still consider price
to be the most important aspect of the sale. Here is where I can provide
expert advice. Price is a very individual thing - in fact, it is more
than that, because your home is absolutely unique. Your home isn't
like a car, which has thousands of indentical duplicates. In fact,
it's the only home of its kind, on its lot ANYWHERE in the WORLD.
There may be similar homes, there may be similar locations. But nothing
duplicates your property completely.
That's
why pricing a home is such a difficult thing. You can research the
selling prices of other homes near yours, or similar to yours in style
or size. (Call me - I have computerized access to all past sales and
can construct a Broker's Price Opinion to guide you) And you can adjust
for time of year, features, size, style, condition, etc. But YOUR
opinion of what your home is worth isn't as important as what the
MARKET's opinion of the worth of your home. After all, it's someone
out there in the market that will actually buy it (not you!). That's
why it's best to let a skilled professional active in the real estate
market advise you on the proper price.
There are
times when a home seller will consult with 2 or 3 Realtors to get
varied opinions on the proper selling price. Although these sellers
may say they're looking for the right price, far too often they settle
for the highest price. It's tempting to do - so tempting, in fact,
that some desperate Realtors prey upon your expectations to get you
to list your house with them, and suggest an unrealistically high
selling price.
Somewhat
less often, Realtors will take advantage of your inexperience and
suggest a price that is too low for the market. Your home may sell
quickly, but in the process, you may squander much of the value of
your home.
Listen
to the expert that advises you on the price of your home. Don't let
yourself set unrealistic expectations, based on overly optimistic
appraisals. Remember when you are selling your home, it is only worth
what someone else is willing to pay, and it's their judgment of value
that counts, not yours.
If you
set your price too low. . .
. . . the
consequences are obvious: You won't make as much on the sale as you
could have. One of your family's most important assets has not been
properly managed, and you have less money going forward, whether you're
shopping for another home or making other lifestyle changes.
If you
set you price too high . . .
. . . the
consequences are less obvious, but perhaps even more damaging. Here
are some of the pitfalls:
-
Your
home can sit on the market far longer than necessary. Homes that
have been on the market a long time are automatically discounted
in value in the minds of prospects. Their reasoning is simple
enough: "There must be something wrong with this place if
it hasn't sold yet..."
-
When
your sale is delayed unnecessarily by a too-high price, you will
probably still have to make mortgage payments. These payments
eat deeply into any potential gain you make if and when your house
sells at an inflated price.
-
Your
home may not appraise for its selling price. Banks have their
own opinion of value, and if their opinion is substantially lower
than yours (or your buyer's), there won't be enough mortgage money
offered to complete the transaction. YOU may end up kicking in
the difference!
-
Homebuyers
DON'T have to settle for an overpriced home. Even interested,
serious prospects for your home will realize there are other homes
on the market at fairer prices. Buyers become good judges of value
as they go through the home-shopping process, and they can and
will change their plans to get their goal of the best possible
deal.
-
While
your home sits unsold, it may be impossible for you to take advantage
of the right opportunity for your next home. The dream home you've
been waiting for may disappear at a fair price, while your home
sits unsold at an unrealistically high price.
I've seen
it happen many times: someone sets a price that is too high for a
home, and it sits unsold for far too long. Eventually, out of desperation,
the owners (and the misguided Realtor) lower the price, and often
settle for a price that is at or below the price that would have been
right at the start. In the meantime, the owners have paid another
year's worth of interest (and principal) on their mortgage, and have
been unable to take advantage of buying opportunities that arose during
that year.
Luckily,
there is a simple answer to the question of pricing your home right,
so you get a fair offer in a reasonable time. You probably know what
the simple answer is, but if you're wondering.... Call ME, Barb. I
have the experience to price your home right, and I have the active
market of buyers to get you top dollar.
A bit about
negotiation: We're in an era where people negotiate over virtually
everything they buy and sell, and negotiation is an accepted part
of real estate transactions. You should take your Realtor's advice
on the asking price, using his/her experience to account for the kind
of vigorous negotiation that can be expected.
With the
right price set for your home, it's time for Step #4: Putting your
home in "Showroom Condition."
