Pricing-The Risks You Face and How to Avoid Them
 The Role
of a Real Estate Agent in Pricing
- There is no "exact price" for real estate.
- We don't tell you what we think your home is "worth."
- The market determines value-together we determine price.
- We will show you a range of prices being paid for homes in your area.
- You determine the price based on the factors you control:
1. Market Time
2. Financing Alternatives Provided
3. Condition of the Property
4. Exposure Methods
The Real Value of Your Home Is Based on Facts
A good REALTORŪ will show you the facts regarding current market values. The most revealing fact is the prices buyers have
been willing to pay for homes similar to yours. These are called comparable sales and are available to every REALTORŪ in
our area.
Remember, the agent you choose isn't buying your home; the agent you choose is responsible for selling
your home. Don't select your agent based on the price they say your home will sell for.
Unfortunately, a homeowner will often select the agent who quotes the highest price. Sometimes, an agent
who understands this will tell a seller an inflated price to get the listing and then start working on you immediately
to get a series of deep price cuts..
The secret to getting the most money and the quickest sale with the fewest problems is to price your home
properly. The facts are available and they are clear and convincing. The best way to select a REALTORŪ is to find the person
with the best strategy for marketing your home.
Pricing-The Risks You Face and How to Avoid Them
Goal:
To select a price that is right on target and gets your home sold!
 Rules
of Thumb:
If you are getting showings but no one is writing an offer, it generally means that you are in the range
of four to six percent above market price.
If your number of showings is low and you're experiencing a lot of drive-ups but the buyers don't come
in to see the home, then your home is six to twelve percent overpriced.
If no showings are happening at all, then your house is likely priced twelve percent or more above what
the market will bear for your property!
Pricing -The Risks You Face and How to Avoid Them Pricing Your Home Advice From the Experts
When selling your home, one of the hardest things can be deciding on the price. You've called us in as
experts to sell your home and to help you price it so it will sell. We're truly dedicated to getting you the most money
you can receive from that sale. In addition, we recognize there are many reasons you may already have a certain price in
mind. You may be considering.
Your Original Purchase Price
Chances are you paid market value. However, markets change, and today we have to deal with the current
market conditions. If you inherited the property and paid nothing for it, would you sell it for next to nothing? Of course
not. You'd price it at fair market value and sell it for what the market will bear.
Improvements
Improvements should be made for enjoyment not resale. You cannot add an item to a home, select it to your
style, use it, then expect a buyer to pay the original cost. Likewise, maintenance preserves the value, but does not create
value. If you needed a new roof, it was needed as a maintenance requirement and cannot be added to the market price of
your home.
Your Need For Money
Your need for money or the fact that you are moving to a more expensive area where you will have to pay
more for a home has nothing to do with the home's current market value.
The Cost to Rebuild Your Home Today
Construction cost does not take into account market value either.
Your Personal Attachment to the Property
The factors above may influence the price in your mind; but as you can see, they really have nothing to
do with what your home is actually worth in today's market. Over the years, we have often heard these comments from sellers:
- "Another agent said it was worth more."
- "People always offer less than the asking price."
- "The buyers can always make an offer."
- "My
neighbour
was able to get his price."
- "My house is better than these other homes."
- "We paid more than that for our home."
- "We just painted and added new carpet."
- "I need this much money for our next house."
Although some of these comments may be true, they are not valid when deciding on the right price.
Pricing-The Risks You Face and How to Avoid Them
 What
Overpricing Can Do
to the Eventual Sale Price You Receive for Your Home
You will lose the excitement that a new listing generates. Agents are working with buyers who have seen
what is currently on the market and are waiting for something new to be listed. Therefore, most activity will take place
within the first thirty days of a listing. Your home will probably receive its best offers during this time. After this
initial period, the only people who come to look at your home will be new buyers in the marketplace.
You will lose the most qualified prospects. Potential buyers will not "make an offer" because they probably will never
see your property. They will view the properties that are priced within their purchase-power range, knowing that they cannot
afford anything above their price range.
Overpricing helps sell other more competitively priced homes first. Your home may become the example demonstrating
the good value of other properties. Your objective should be to enter the market in a position that will attract prospects
not drive them away.
If you do get an offer, the contract may fall through because of appraisal problems. The lender, through
the appraiser they send to your property, must justify the price to the market in order to approve a buyer's financing.
As you can see, pricing your home correctly will make a tremendous difference in how fast it sells and
for how much. We make it our business to know the market and price our clients' homes to sell for the most money in the
least amount of time-and we're good at it. Just ask our past clients. If we need to talk about price, we'll call you-or
don't hesitate to call us first.
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