“You want how much for this house?”
Okay, it’s not the reaction you were hoping for when you put your home on the market. But if the price of your home is set too high, then you’re probably turning off buyers (probably before they even walk through the door). Plus, you’re increasing the time on the market and may still need to reduce the price.
The price, location and photos are the most important factors buyers consider before they ever call for more information. For now, I’ll focus on the price.
Several factors should be considered when trying to set your price.
CMA – A comparative market analysis report will help establish the relative value of your home. It reflects the asking and selling prices of houses in your area with similar characteristics along with the current inventory of homes and compares the features of each home.
Appraisal – Appraisers research the current market value of similar homes in the area as well as fluctuations in the market and previous sales and tax records of the home. In addition, they compare census data for local home sales.
Buyers – Ultimately, all of the above does not matter, if a buyer is not willing to pay the price. The buyer holds the cards. The above tips are just meant to help guide you on setting a price, but since most homes are not exactly like the one next door, there are no guarantees they will both sell for the same price.
Avoid picking a price based on what you think it’s worth or how much you want or need to make on the sale. Buyers don’t care.
I’d advise you to contact a Realtor to give you a CMA and really listen to their recommendations. In a buyers market, it can be detrimental to your bottom line if you don’t price it correctly out the gate.
Realtors – What advice do you offer clients when setting the price? How do you overcome objections?