Price Your HomeTo Sell Faster
Pricing Your Home to Sell Faster
Price is always the main factor in determining how long it takes to sell a house. The houses that sell fastest are those that are priced closest to the current market value based upon their condition relative to the most similar recently sold homes.
Over 90% of buyers use the internet to search for their new home and they now have more information than ever right at their fingertips. Buyers can now view all the homes currently for sale (and previously sold) in your neighborhood, and they can get a very good feel for the current market values right from their living room. If they see a home that’s not priced appropriately, they will likely never even request a showing. Showing traffic typically drops off considerably after the first 2-3 weeks a home is listed, so it’s vital that you price your home correctly right from the start.
Pricing Too High
Our goal is to help you realize the most net profit from the sale of your house in the shortest amount of time. We do this by assisting you with enhancing the desirability of the house and proactively marketing to qualified buyers. The enhanced exposure will help your home sell much faster, if it’s priced right.
The most common mistake in pricing a house for sale is overpricing. It’s understandable that you want the most money possible from the sale of your house, but real estate is market based – sellers determine the asking price but the buyers ultimately determine the sales price. In other words, the market value of a house is what a buyer is currently willing to pay for it.
If you price your house well above what similar houses in similar condition are selling for, buyers typically won’t have much interest until you lower the price closer to market value. Even if a buyer thinks the price is acceptable, their agent will likely perform a CMA on the house and let them know it’s above market prior to making an offer. Since most buyers finance their purchase, the house will also have to appraise for the sales price for the mortgage to be approved.
The longer your house sits on the market, the more it will cost you in the end. In addition to your ongoing carrying costs (mortgage, taxes, insurance, HOA dues, utilities), a lingering listing is a red flag to buyers and agents. The longer your home is listed, the weaker the offers will be because even if the buyers love it, they will likely question why it hasn’t sold and scrutinize the house in more detail.
Why has the house been on the market so long? What’s wrong with the house? Will it appraise?
Pricing Too Low
If you price your home well below market value, many buyers will be interested and you will likely have multiple offers very quickly. This is the quickest way to sell a house but you don’t want to leave any money on the table. If the house is below market by mistake then you don’t have to accept any of the lower offers – you can counter them with a higher price and/or adjust the sales price.
Pricing the house correctly, as close to market value as possible, will result in the strongest offers in the shortest time. Buyers may still want to negotiate, but if your home is already priced right (and pre-inspected) you can easily justify the price without negotiating any lower. Buyers will know it’s at market value and ask the questions you want to hear.
Can we make an offer today? When can we close? Where should we put our sofa?