When a homeowner decides, he wants to sell his home, shouldn’t his objective be, to get the best possible price, in the shortest possible period of time, in a way, where he minimizes stress and strain, throughout the entire process and period? When selecting one’s agent, he should opt for someone, who takes the time, and makes the effort, to thoroughly articulate his reasoning, approach, and how, he might work together, agent and client, to get the best possible results! Often, this begins, with a clear – cut, focused effort, on pricing the home, right, from the start, because, nearly every study and evaluations, indicates, most houses garner their best offers, in the first few weeks after they are listed on the real estate market. This article will attempt to briefly discuss 5 considerations for pricing one’s home, to sell.
1. Market conditions: There is no single way to price a house. Specific market conditions vary, periodically, and these should have an important impact, on how to proceed. Is there a buyers, or sellers market? It’s a Buyers Market, when there are more sellers than buyers, and a Sellers Market, when there are fewer homes listed, for sale.
2. Competitive Market Analysis: The best way to determine the listing price, should be, by using a Competitive Market Analysis, or C.M.A. This means, carefully, considering the price, similar houses, recently sold for, while taking into consideration, and adjusting upward and/ or downward, based on differences. When homes are priced right, from the start, they will generally attract the greatest number of qualified, potential buyers.
3. Economy: Economic considerations, are a major factor, in pricing. When the overall economy is strong, and there is strong consumer sentiment/ confidence, as well as a powerful job market, more people are seeking houses, which, based on the concept of supply and demand, raises prices. Conversely, when this is diminished, creates less interest, and the need to adjust pricing.
4. Mortgage rates: Most buyers purchase their house, taking advantage of using a mortgage. Therefore, they evaluate, their monthly expenses and costs, and when interest rise, and mortgage rates, do, also, fewer people are able to afford something, because it costs more to buy a specific – priced house. When this lowers demand, often, the house, sells for a lower price.
5. Specific strengths and weaknesses: Although homes may be similar, in terms of size, interior and exterior, etc, every property has specific strengths and weaknesses, which affect prices. The first is location, because certain areas might be more sought after, and, thus, buyers may be willing to pay a higher price, there. Upgrades, updates, condition (specific and overall), layout, curb appeal, etc, will either strengthen or weaken the potential selling price, of a particular house.
When you objectively, consider, these 5 considerations, and price the house accordingly, you enhance the potential selling price. Homeowners should identify, and select, the best agent, for their specific needs!