Get It Sold – Price It Right

 

 

  •  Real estate agents have no control over the market, only the marketing plan.

 

  • Never select an agent based on price.

 

  • Price it according to the market.
  • Overpricing in a rising market may be okay.  You must wait for the market to catch up, but the house may become “shop-worn” in the meantime.
  • Overpricing in a stable market is bad.  You are not competitive.
  • Overpricing in a falling market is disastrous.  You are already above the market, and the situation only gets worse.

 

  • Four numbers used to represent your house:
  • Cost – What was paid plus improvements.  What you paid is irrelevant in the market.     
  • Price – What you, the seller want
  • Value – What the buyer is willing to pay
  • Market value – What a willing buyer and seller will agree on

 

  • Reasons sellers give for overpricing
  • Over-improvement – you cannot upgrade, add to your lifestyle, enjoy the benefits and then expect a buyer to pay you 100% or more for your investment
  • Need – Your need for money does not increase the value of the house.
  • Buying in a higher priced area – That is not the buyer’s problem
  • Original purchase price was higher – Markets rise and fall.
  • Need bargaining room – It doesn’t help.  You’re still overpriced.
  • No factual comparables of sold properties – Not a problem with a  good real estate agent.
  • The move isn’t really necessary – wait until it is.

 

  • Benefits of proper pricing     
  • Faster sale, which saves money on payments, taxes, and insurance
  • Less inconvenience
  • Exposure to more prospects
  • Increased salesperson response
  • Better response from marketing and advertising
  • Attracts better offers
  • Means more money in the long run