Setting the Right Price
All sellers would like to sell their house for as much as
possible, while all buyers would like to pay as little as possible.
Market conditions, the desirability of the house, as well as
now quickly you want it to sell. Most of the time, buyers and
sellers find a middle ground, but there are always ways to
pull the situation in your favor.
- Get the facts.
It's not necessary to spend money on a formal market appraisal, Realtors
specializing in your area have enough information to do an accurate
comparative market analysis. Agents take data from recent home sales,
your home's attributes and the neighborhood to determine a fair value
of your house.
Click here for a free comparative market analysis.
- Set your price judiciously.
It is prudent to set your price 5 to 10 percent above the market price
in order to end up with your home's actual value when you sell it.
You can also figure out a price per square foot by looking at the
prices of other homes on the market already - you can do this by
diving the list price by the square footage. Of course, more desirable
qualities and features allows you to set a higher price. One more
thought, follow the retail hook by setting the price just above a
whole numbe, ie. $189,000 instead of $190,00, there's a reason why
this practice is popular.
 Don't
waste time.
People look for the new listings when buying a house, so the longer
your house is on the market, the less likely you are to be satisfied
by agreed price. List your house in the spring or fall, when more buyers
are looking. avoid slow periods in mid summer or mid winter.
- Have your house inspected.
Be ahead of the game, getting your home inspected at the beginning
of the process allows you to address issues and make repairs before
you sell your house. This also reduces surprises, and reduces any
price reductions you would have to make in order to make last minute
repairs that can be costly.
- Make your home a model home.
After you've made repairs, you want to dazzle potential buyers who
are willing to pay for a home in perfect condition. A little paint,
floor polish, new fixtures, and new plants inside and out can make
your home that much more appealing, and therefore more profitable.
- Simplify the Contract
In the purchase contract, avoid expensive terms such as paying a buyer's
closing costs, and watch out for contingencies that could cost you
time off the market. If a buyer wants to close the sale contingent
on selling his or her current house, include a kick-out clause that
allows you to back out of the deal within 72 hours if you receive
an offer that does not contain contingencies.
So, you're accepting an offer, is it possible you are missing
out on a better one by doing this? If the price is in your
range, consider market conditions and how quickly you want
or need to sell. In a seller's market with few listings, you
may get other offers right away. But in a buyer's market with
many listings, you risk offending the buyer who may then withdraw
the offer. If local practice and custom is to entertain all
offers as they are received, follow convention and counter
at a higher price. If custom dictates that no offers will be
accepted until after the first open house, you have a reprieve.
Nothing to Lose
In a buyer's market with many listings, you may be presented with a low
offer. Such offers can be annoying, but consider testing the buyer's
interest by countering the offer. (The buyer could be testing you,
too.) If your home is in a desirable location and in excellent condition,
and the buyer is genuinely interested in purchasing a home, you have
a golden opportunity to sell. Find out what the buyer really wants
and shape the counteroffer accordingly. Signal your flexibility on
contract terms or, if you can, offer seller financing in exchange for
a higher price. |
