This is a price sensitive market. Real Estate is NOT a product. It is a commodity. The buyer determines value. Like stock, the buying public push the price up or down. It is not a question of what the seller wants or has to get, it's the buyers perception of value that determines what your home sells for.
There is one big difference between real estate and other commodities. Real Estate is an emotional purchase.
In today's market you generate more activity if you price your property competitively from the start. There are 3 strategies:
This is price determined through a Comparative Market analysis (CMA)of your home with your Realtor.
*Competitive price encourages quicker sale
*Generates positive Market exposure
Low Asking Price
Attracts more potential buyers as excitement for the home is spread to agents and buyers
*More likely to attract higher offers, even multiple offers and a quicker sale
*Maximizes the early weeks of peak interest and activity
Most people love their home and feel that their home showed be priced at the top of the market without considering the consequences.
* Showings decrease after the property is perceived at being priced out of the market.
*Lengthens the market time wish usually results in a lower selling price.
*Exposure is reduced as today's home buyers are educated and won't even look at over priced properties.
*Finally, and most importantly the home will not be able to appraise for financing if an offer is made. Appraisers only go back 3-6 months in today's market for comparables and are very tight.
In conclusion, Price, condition along with a unsurpassed marketing plan and internet exposure PLUS an Agent you can count on make a difference whether your home sells or not in today's market.
Statistics consistently show that homes priced properly and agressively out of the gate sell for more than those who believe a higher list price leads to a higher sale price. As the days on market grow for any property, so does the gap between the original list price and final sale price. Ask any buyer which home they feel they have more bargaining power on…the one that has been on the market for 200 days or the one that has been on for 2 weeks or less.
Remember fair market value is what other similar homes have SOLD for. Solds, not actives. Solds include those SOLD in the past 9 months or less. Not what you need or want to sell your property for. Buyers could care less what the sellers needs are. All they care about is paying the right price.
My goal is to get the maximum amount of dollars for your home in the shortest time. Understanding how the pricing is determined and pricing right is just the beginning.
Then there are the Real Estate agents that always tell sellers what they want to hear in order to get the home listed, especially when the agent knows they are in competition with other Realtors. Buying a listing in this industry has been going on since the beginning of time.Tell your clients what they want to hear, get a signature, then work on the price reductions. All the time they are doing this the home is losing value and you are chasing the market to sell your home.
As your agent I am up front and honest when discussing your homes value. I will do everything to get the most out of your home at the same time I am realistic about today's market.
My Marketing Plan will make the difference and bring you more money. There are so many factors to consider. In todays market Appraisal guidelines are TOUGH and your home must appraise for what the buyer is willing to pay or they will not get a loan. Guidelines are strict and you need to know upfront exactly how much your home will sell for .
Daily on the Multiple Listing Service (MLS) you see countless homes that come up “expired”. For those that are not familiar with this term, an expired listing is a home that did not sell. When looking over the possible common reasons of why some homes do not sell the reason is usually one reason.
In most cases the reason is very simple. The home was improperly priced. In a very competitive Real Estate environment, the price that is set on a home can be more than 65% of the marketing!
If you list on the market at the wrong price, the best Realtor in the world with the most sophisticated marketing will not be able to get a home sold.
Now with that being said, never choose a Realtor based on price. Choose your Realtor based on someone who listens and knows the market, full time, full service, the backing of powerful respected Company, a strong proven powerful marketing plan centered around the internet, excellent communications skills, someone willing to go up and beyond in today's market with brutal honesty.