Am I Priced To Sell?
As a seller, you have two goals:
- To get the most money possible.
- To sell as quickly as you can.
Price is the number one factor that most home buyers use in determining which homes to view. Although you as seller set the price, the value of the home is determined by the buyer. It is important to heed the advice of an experienced real estate professional, such as myself, so that you do not make the mistake of overpricing your home. This could lead to delays in obtaining offers and could even cause you to miss the selling season.
Here are some factors to consider as recommended by experienced residential specialists to help you sell your home. This information is not all-inclusive and does not replace the expertise provided by a qualified real estate professional.
What Affects Your Asking Price?
- Urgency. How quickly must you sell?
- Competition. Are there just a few or many homes available in your price category and area?
- Available Financing. Does your home come with an assumable loan that is below today's rate? What are the current home loan interest rates? What financing alternatives are available for your home and area?
- Competitive Market Analysis. Do you know what similar homes in the area sold for within the last six months?
- Expenses. What are your selling costs?
What Doesn't Affect Your Asking Price?
- Original Cost. Your price is determined by today's market.
- The Cost to Build Your Home Today. A replacement value is determined for insurance purposes only.
- Personal Attachment. Prudent buyers purchase based on their emotions, not yours.
- Neighbor's Claims. Don't listen to what your neighbors tell you is the fair market value for you home. Other homes in your neighborhood may not be as similar as you think. Also the terms accepted by both the buyer and seller greatly affect the sale price.
What Happens to an Overpriced House?
- You'll Help Sell the Competition. The "correctly priced" homes look even better if yours is overpriced. Most buyers are competitive shoppers.
- Your Home Might Stay on the Market a Long Time while buyers place offers on more realistically priced homes.
- You May Lose Market Interest and Qualified Buyers. Serious buyers use the value, quality and price of similar properties as deciding factors.
- A Negative Impression is Created. People will wonder why your house is still on the market. They might believe something is wrong with your home.
- You (The Seller) Could Lose Money in the Long Run. You may have to make extra mortgage payments as well as incur taxes, insurance and unplanned maintenance costs.
- You (The Seller) May Have to Accept Less Money. Oftentimes the longer a house is on the market, the greater the discount off the list price. Sometimes sellers will accept less than fair market value in order to sell because of an approaching deadline.
- There is the Potential for Appraisal Problems. The appraiser from your buyer's lending institution must agree that the home is worth the asking price. If the appraiser believes the price is inflated, the buyer's loan may not be approved.
Look To a Qualified Real Estate Professional When You Need Answers Fast!
As you can see, there are a multitude of factors that determine the asking price of your home. Finding this price yourself can be a long and difficult task. That is why thousands of satisfied homeowners, like yourself, turn to a residential specialist. A residential specialist has the tools necessary to compute the fair market value of your house quickly and accurately while allowing for personal considerations (such as the date by which you must sell). Your residential specialist can also confidently answer your questions about listing, pricing and showing.
A residential specialist's goals are the same as yours!
- To get you the most money possible.
- To sell your home as quickly as you can, call Jeff Green, a qualified Broker and REALTOR®.
Broker CalBRE Lic#01519105
Jeff Green - Allison James Estates & Homes
210 South Sierra Avenue Ste 6