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Pricing your home is an art -- not a science.
Achieving the optimal price is the result of both objective research
into similar properties and instinct in determining how much a buyer
will be willing to pay for your home. The right price will
attract showings, which will generate offers.
The unfortunate fact
is that price is the number one factor that most homebuyers use
to determine which homes they want to view. It’s also important to
remember that although you and your Realtor set the asking price, the
selling price is determined by the buyer.
The Correct Price Will:
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Result
in a quicker sale, with less inconvenience to the seller
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Expose
the property to more buyers
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Increase
Realtor response
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Generate
more ad calls
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Prevent
your listing from getting "stale" or "shop worn"
Typically homes that sell
more quickly, sell closer to or sometimes over asking price.
Some Common Reasons for
Overpricing
Overpricing Pitfalls
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Most of the activity
on your home will occur in the first few weeks. Pricing a home
properly creates immediate urgency in the minds of buyers and
agents.
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There is a pool of
buyers who have seen most available homes in their price
range and are now only waiting for new listings or price
reductions. A buyer that has been waiting, may fail to see your
home if it is priced too high.
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Sometimes, a price
reduction may be too late, as interest by both buyers and
Realtors, may have waned.
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Buyers and their
agents are very aware of the length of time on the market, the
most common question continues to be: “How long has it been
on the market?” Often buyers are reluctant to make an offer
on a home that has been on the market for “awhile” thinking
that there is something wrong with the home.
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Unfortunately,
overpriced listings frequently help you to sell your neighbor’s
reasonably priced home, making it appear that their home is
priced very well.
The Role of a Real
estate Agent in Pricing
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Provide you with a comparative
market analysis, which is a comparison of recent homes with
similar amenities that are available, in escrow and sold.
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There is no “exact price”; your home
is worth what a buyer is willing to pay.
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The market determines value;
together you and your agent determine asking price.
Realtors have no control
over the market, only the marketing plan. The seller determines the
asking price. Never select an agent based on price.
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