Am I priced to sell
Attracting buyers is the name of the game
As a seller, you have two goals
1. To get the most money possible
2. To sell as quickly as you can.
Be realistic. Price is the number one factor that most home buyers use in determining which homes to view. Although the price is set by the seller, the value of the home is determined by the buyer. If you over price your home it may not sell, a mistake you can't afford to make. A buyer will compare your homes to all of the other homes offered for sale. They will expect more from your home if it is priced higher. If it does not measure up to the competition, the buyer will be disappointed and will not see the value in your home. Price it right and it will sell!
Here are some factors to consider
What Affects Your Asking Price?
Urgency. How quickly must you sell? - Competition. How many homes are you competing with and does your price fall in line with your competition.
- Competitive Market Analysis. Do you know what similar homes in the area sold for within the last six months?
What does not affect your Asking price?
- Original Cost. Your price is determined by today's market.
- Investment in Improvements. You may not get the total cost of your improvements back when you sell. Buyers may not place the same value on them as you do. For instance, a pool or hot tub may not be a desirable feature for some. A basement finished by the home owner may take value away from the home if it is not done properly. Décor will vary with every buyer. Refer to the pamphlet Smart Reno’s payback.
- 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.
- Neighbour's Claims. Don't listen to what your neighbours tell you the fair market value for your home is. They are not trained realtors and aren't likely privy to relevant market information. Other homes in your neighbourhood may not be as similar as you think.
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. They will compare your home to the others in a similar price range. If you are priced higher than your competition, they will expect your home has more to offer.
- Your Home Will Stay on the Market a Long Time. Did you know that 80% of your potential buyers will see your house in the first two to four weeks? If you don't sell during this time frame, it takes approximately three months to replace them with an equal number of newcomers. The buyer that has viewed all of the competition and then sees your home is the best prospect. They know the market and are ready to make a decision.
- A Negative Impression is Created. People will wonder why your house is still on the market. Often they believe something is wrong with your home.
- You Lose Money. If your home takes longer than expected to sell, you may have to make extra mortgage payments as well as incur taxes, insurance and unplanned maintenance costs.
- You May Have to Accept Less Money. Studies show that the longer a house is on the market, the greater the discount off the list price. Often a seller will accept less than fair market value in order to sell because of an approaching deadline.
- There is the Potential for Appraisal Problems. If you were lucky enough to sell at an inflated price, 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 loan may not be approved.
152 Bayfield St.
Barrie ON L4M-3B5
(705)722-7100
