So… the real question: Is it location… or is it price??? Make no mistake about it; pricing your home is the most critical part of selling. As sellers, we all want to get top dollar for our homes. However, overpricing may eliminate the very buyers who could eventually make the purchase. Even if a buyer decides to buy an overpriced home, if the lender’s appraiser is unable to justify the price, the buyer’s lender may not approve the loan based on that high price and the deal may fall apart. Then we’ll need to start the selling process all over again. What most sellers don’t truly understand is that a home must be sold three times to actually “get it sold.”
We’ve all heard that what’s most important in real estate is “location, location, location.” And while location is certainly important, if it a property is in a bad location, a good price can still get that property sold. So, price CAN overcome a bad location. So… it’s really “price, price, price”… especially in a “buyer’s market.”
So, how is a home priced for sale? Well, sellers really don’t determine what their home is worth; the MARKET does. In general, a home’s value is determined by what other comparable homes in the area have sold for, usually in the past six months. A comparable home is one similar in square footage, age, number of bedrooms & bathrooms, condition and amenities. In most markets, values are not only determined by what has recently sold, but ALSO by the current competition.
You can determine the best price at which to list your property by working closely with your Realtor and considering the recommendations made based on the recent market analysis. If your home is priced too high, it will sit on the market and not sell. Then it becomes “shopworn” and buyers may wonder “what’s wrong with the home?” since it has been on the market so long. Then, because it has been on the market a while, you may end up selling it for less than you could have if it was priced right in the first place.
It’s vital, especially in today’s market, to price a property well from the start. Work with your Realtor and be sure and “listen” to the market.
If you’d like to discuss the market or have questions about selling your home, give me a call today on my direct line at 916-508-5353. No pressure and no obligation… you have my word.