Once the decision is made to sell your home, and you’re ready to choose a real estate agent to represent you, one of the elements of the interview process will involve establishing what your asking price should be. This is a key step in marketing your home because the wrong price attracts the wrong buyers and will negatively impact the marketing potential of your property. Right pricing encourages maximum exposure, buyer excitement, and positive offers. At Sloane Realty you can count on us to price your home right the first time!
Establishing the Asking Price
As you meet with agents each will probably present you with a Comparative Market Analysis (CMA) to explain how they reached their recommended listing price. You may find some experienced agents recommending prices that are lower than you may have expected or wanted. They will most likely support their recommendations with recent real estate market sales data of comparable homes in the Sunset Beach area that have sold for similar price points.
Then enter another agent’s figures: they are much more in line with your own anticipated value, or maybe even higher. When you are convinced your house is worth more than what other agents suggested, this agent’s figures make you eager to sign on the dotted line and start counting your earnings.
The Risks of Wrong Pricing
During the first couple of weeks your home should be busy with buyers’ agents coming to preview your home so they can sell it to their clients. But this only will happen if it is priced right. If your home is overpriced, the other agents, who know the Sunset Beach real estate values, will realize it is overpriced and will not waste their clients’ time showing it. The end result is a stalled sale or at the very least, a sluggish start:
• Fewer buyers are attracted to overpriced homes
• People may look but offers don’t follow
• Marketing time is prolonged
• Property attracts lookers and makes competing listings look better by comparison
• If property does go under contract above true market value, the lender’s appraisal may fall short and buyers may lose their financing
• Property may eventually sell below market value as bargain hunting buyers look for “stale” listings
Do Your Own Research First
It pays to research your home’s value yourself when you’re still considering selling your home. By looking at similar homes for sale around Sunset Beach using the Multiple Listing Service, and homes that have sold in Sunset Beach that are similar to yours, you’ll have a better understanding of what to expect. It pays to go with an agent like Sloane Realty who will honestly tell you, with data to back it up, what your home is worth in today’s market.
Remember the Benefits of Right Pricing:
• More buyer showings in the first 3 weeks of highest activity
• Greater potential for multiple offers
• Marketing time is shorter
• The home is a “hot” listing when it’s new
• Property attracts serious buyers already actively comparison shopping in your price range
• Transaction dates and mortgage contingencies proceed smoothly when the lender’s appraisal can validate the sales price
Give us a call at Sloane Realty if you’d like to meet to discuss how to price your home for sale in today’s market.