Pricing Real Estate to Sell Quickly
Some home owners need to sell for financial reasons. Perhaps they need as much cash as possible to put down on another house or to pay college tuition or pay off debt. Many reasons exist for needing the most from a house sale and each one impacting the pricing strategy. In this scenario the condition of the house significantly impacts the ability to get a maximum price. Buyers are willing to pay a premium for updated kitchens and baths, well maintained and upgraded systems such as roof, heating, plumbing and electric as well as newly painted interior/exterior or newly finished hardwood floors. Home owners who want maximum price need to be objective regarding the condition of their house and be prepared to make improvements or lower the price. In any market, comparable properties that have recently sold or are on the market establish the price range to expect for a house. Within that price range the condition of your house can make the difference between getting the high end of the range versus the lower end of the range.
Establishing the right price for a home to sell must take into account the reasons for selling. When there are life-events that create a short timeline for the sale, home owners need to understand how significantly price will impact their ability to meeting that timeline. In cases where getting the best return on investment is the top priority, home owners can be flexibility on how long the property stays on the market. However, getting the maximum return also means that the house is in excellent condition. A house that needs work cannot be premium priced. Ultimately the market place will let you know your home value and if you have priced it to sell. Knowing your motivations and priorities for selling your home is critical to set realistic expectations for price.
The Right Selling Price Affects Your Bottom Line
When you’re selling your home, the price you set is a critical factor in the return you’ll receive. That’s why you need a professional evaluation from an experienced realtor. This person can provide you with an honest assessment of your home, based on several factors including:
- Market conditions
- Condition of your home
- Repairs or improvements
- Time frame
In real estate terms, market value is the price at which a particular house, in its current condition, will sell within 30 to 90 days.
If the price of your home is too high, several things could happen:
- Limits buyers. Potential buyers may not view your home, because it would be out of their buying range.
- Limits showings. Other salespeople may be less reluctant to view your home.
- Used as leverage. Other realtors may use this home to sell against homes that are better priced.
- Extended stay on the market. When a home is on the market too long, it may be perceived as defective. Buyers may wonder, “what’s wrong,” or “why hasn’t this sold?”
- Lower price. An overpriced home, still on the market beyond the average selling time, could lead a lower selling price. To sell it, you will have to reduce the price, sometimes, several times. In the end, you’ll probably get less than if it had been properly priced at the start.
- Wasted time and energy. A bank appraisal is most often required to finance a home.
Agents have known it for years – Well-kept homes, properly priced in the beginning always get you the fast sale for the best price! And that’s why you need a professional to assist you in the selling of your home.