Price it RIGHT and get the MOST out of your home
 
Getting the offering price right for your home right at the start of your listing is essential to getting the highest possible returns. 
 
There are many ways to define "The Best Deal" but, for most homeowners getting the most money out of their investment is very high on the list.  One of the most common questions I hear from homeowners is how much can I sell my home for?

 
   
As an experienced real estate broker, I know that the answer to the question is subjective and depends on several factors.  However, being objective about the market, property condition and a variety of other factors that may influence the sale are keys to success. To get the highest possible returns, it is critical for the offering price to be competitive and justifiable in the marketplace.  When just the right balance between pricing and desirability of the property are found it is certain to get the Seller maximum returns. 

Getting to the right starting price for your home begins with market research, investigation, and understanding the actual Buyer demand for homes similar to your own. 
  
The condition of a property plays an important role.  Of course, there are many other factors involved.  Location, terms of sale and timing are also critically important to determining value.  To illustrate the discussion about the role of property condition and timing in a home sale. 
 
 
Let's consider the hypothetical question, how much is a dollar worth? 
 
 
The "value of a dollar" question leads us to a discussion that I think will help you see CLEARLY how we can achieve an OBJECTIVE and ACCURATE picture of your property value.

Many factors control the value of your home and it is very important to consider all of the factors that make a home salable if you want to know the right price to start. Let's continue starting with property condition. 

Consider a scenario where our cartoon friend pictured was asked to take a dollar bill down to a local shopping mall or gathering place with the task of "selling" the dollar bill. If he took the bill to the local mall and asked enough people to give him a dollar for his dollar, he would find someone willing to "buy" your dollar. To make the analogy work, let's add some other variables to the task.

Suppose that the bill happens to be soiled, torn and crumpled looking. If it were in bad enough shape maybe the prospects would be so skeptical he would not find a buyer at all!  Conversely, imagine that the dollar was "rare" and very unique.  Let's pretend the bill had never been circulated and it had been graded by an EXPERT who had it FRAMED in a sealed PRESENTATION VALET!

What are the odds, depending on the new scenario above, that he might even get more than a dollar in return for your dollar?  Obviously, there are limits to this example much the same as the market has limits when selling your home.    
 
Since the determination of "VALUE" is a subjective process it is easy to understand how personal opinion and variables like timing and terms may also affect the "SALE" and the returns in our example. 

Selling a home should start with a thorough investigation of the marketplace. We achieve this by doing an in-depth analysis of the market taking into consideration any factor that may influence the price and saleability of the home.


To help you find the best starting price for your home, we will need precise sales and Buyer activity data that includes Active Listings, Pending Sales, Failed Sales, and most importantly all the details on homes that have SOLD in your market area and are the most similar to your own. The most important sales being homes that are closest to you in proximity and have sold the most recently. As much as the condition is a dominant factor in determining price and saleability, it is not the only factor.  In fact, depending on your immediate competition, the TERMS, SALES  TRENDS, MARKET TIMING, LOCATION OF THE PROPERTY can be just as important when seeking an accurate price point.  
 
 TO MAXIMIZE RESULTS DETERMINE A JUSTIFIABLE LISTING PRICE EARLY ON!  

 
   
Getting the PRICE RIGHT requires more than multiplying the square footage by the average asking price per foot of comparable homes.  
 
AN ABSORPTION RATE TREND ANALYSIS on the property will help determine right away which DIRECTION that MARKET DEMAND for the home is heading. 

Having this information is the first step in determining a logical price point for your property.  Knowing the market direction and whether SUPPLY of homes is  INCREASING, DECLINING or STABLE helps to give you a CONSIDERABLE ADVANTAGE.  This will help your confidence greatly by knowing if you can STRETCH your numbers or if you need to be CONSERVATIVE.

The next step in price determination should be to IDENTIFY the most likely BUYER PROFILE for your home and MATCH it with the PROPERTY PROFILE for the home you are trying to SELL. (See detailed information about this in case studies tab marketing sections here.  

TARGET the RIGHT Buyer to get the MOST from your SALE! (See our Case Studies for detailed discussion on how tageting the Buyer makes all the difference) 


The reason finding the RIGHT BUYER TARGET is so important is that SELLING the property usually depends upon the financing programs and the TERMS available for the BUYER that MATCH the property.  

In Addition, to marketing to the RIGHT AUDIENCE, there are other VARIABLES that should come into the PRICING DISCUSSION. 

This includes anything unique to the property that may affect the value or the ability of the home to be financed through conventional means. For instance: What is the Location of the property?  Are there any External Influences that may resonate adversely with Buyers or is there ANYTHING about the home that makes it SPECIAL enough that most Buyers would agree to pay MORE?

The answer to each of these questions should be given careful consideration because they will play an important role in the ultimate success of the sale.  DON'T FALL INTO A TRAP by neglecting to consider how each of these concerns will effect PRICING BEFORE YOU LIST YOUR HOME. 

"Conventional Wisdom" may have you believing that you can "TRY IT HIGHER" and "ALWAYS LOWER THE PRICE LATER" is flawed!  This strategy has little accounting for the REAL COST of MISSING the price point. (See numerous detailed accounts of how this plays out in our case studies section here)

Pricing mistakes mean more time on the market and lost money for the Seller.  

Homes that FAIL to gain early market interest because of PRICING or other ISSUES, tend to become stigmatized by the
market place quickly.

When this happens, the home only gets shown for the WRONG reasons, and eventually MUST be reduced further than may have been necessary originally, to accomplish the sale.

This is problematic for all the obvious reasons, the longer it takes to sell the more it can cost.

WIN BIG BY MARKETING WISELY and PRICING RIGHT EARLY in the process

To WIN THE PRICING GAME be sure to take a COMPREHENSIVE LOOK at all the different ELEMENTS that make up a MARKET WORTHY PRICE for your home.

EVERYTHING that has an effect on the property should be taken into account. The condition, the paint colors, the age of appliances, roof etc.  How well does the home show?  Has it been properly staged?  Are there optional items NOT shown in the comparable sales and even YOUR PERSONAL MOTIVATION for selling.  

We will help you sort all of these things out OBJECTIVELY with CERTAINTY and CONFIDENCE.

Your success will depend largely on how well your Broker is able to help you set the LISTING PRICE CORRECTLY and MARKET your home.  So, be sure to choose REPRESENTATION CAREFULLY and review the track record and results they have obtained with previous clients, before entering into a listing agreement for your home. 

As a final note, getting things RIGHT the FIRST TIME is ALWAYS the best way to go, but DO NOT despair. If you have had your home listed already and it FAILED to SELL please consider having a  PROFESSIONAL RE-EVALUATION done for you. We have had GREAT SUCCESS by following the basic principles I have outlined above and we can DO THE SAME FOR YOU.

For more information on PRICE and MARKETING and to learn more about how we were able to achieve DYNAMIC RESULTS where so many others have FAILED, please be sure to visit our detailed CASE STUDIES and Marketing Matters sections of this site.
 
Comments or Questions let me know ... We are here to make it EASY for you. 

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