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| Pricing Your Property |
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| The single most important decision you will make with your realtor is determining the right asking price for your property. |
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| Once you've achieved a realistic sale price, you can look forward to your property being professionally marketed which will allow you to sell your home for the best possible price in the least amount of time. |
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| The Benefits of Pricing Right |
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| The closer you are to market value in your pricing, the higher the volume of offers will be. Your property doesn't lose its 'marketability' and sells faster when it is exposed to more qualified buyers. A well-priced property can generate competing offers because Real Estate professionals will be enthusiastic about presenting your property to their buyers. |
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| Determining the Value of Your Home |
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| The market ultimately determines the true value of your property. |
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| Before you compare your home to similar properties and establish a competitive list price, the following points should be considered: |
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| Location Size Options Financing Supply |
| Condition Style Community Amenities Buyer |
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| Getting to Know Your Market |
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| A comparative market analysis is an indicator of what today's buyers are willing to pay for a home. It compares the market activity of homes similar to yours in the neighbourhood. Selling prices for homes recently sold represent what buyers are prepared to pay. Asking prices for homes currently listed for sale represent the price sellers hope to obtain and your current competition. Expired listings are generally an indication of overpriced, stigmatized or poorly marketed homes. |
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| Your realtor will prepare a comparative market analysis for your home based on the most current market information. Together you and your Real Estate Professional will establish the proper list price for your home. |
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| Understanding the Factors that Influence Overpricing |
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| Extensive renovations/hidden costs. |
| A desire to purchase in a higher-priced area. |
| Original cost of the home was too high. |
| Lack of real market information. |
| Building in "bargaining room". |
| Perceived emotional value. |
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| The Result of Overpricing |
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| Many sellers believe that if they price their home high initially, they can lower it later. |
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| Often, when a home is priced too high, it experiences little activity. Gradually the price will come down to market value, but by that time it's been on the market too long and many buyers will be wary and reject the property. |
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| On occasion, the price is dropped below market value because the seller runs out of time. The property sells for less than it's worth. |
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| Missing the Right Buyer |
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| You may think that interested buyers "can always make an offer", but if the home is overpriced, potential buyers looking in a lower price range will never see it. |
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| Those who can afford a home at your asking price will soon recognize that they can receive better value elsewhere. |
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| The Importance of Early Activity |
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| As soon as a home comes on the market, there is a flurry of activity surrounding it. This is the crucial time when Real Estate Professionals and potential buyers sit up and take notice. |
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| If the home is overpriced, it dosn't take long for interested parties to lose interest. By the time the price drops, a majority of buyers are lost. |
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