When the Price is Right – Pricing Your Home to Increase Your Chances of Selling

Barker-Group_pricing

The real estate market is very sensitive to the prices of homes.  A few percentage points in price can be the difference between selling immediately or waiting another year to re-list your unsold property. When pricing your home, I conduct in-depth research on other homes in your area and properties with similar features to ensure your home is being priced to maximize efficiency and profitability. Because each seller’s circumstances and goals are different, there are a few thoughtful questions I like my clients to consider:


How Desirable is Your Home to Buyers?:  The housing market is forever changing. As a result, the home you lived in for years is often not worth as much as your nostalgia would have you believe. Even if a home is not “old”, out of date appliances can depreciate its value. Without up to date features such as granite counter tops, wood flooring, and newer mechanicals and appliances, pricing your home too high above its eventual selling price will discourage buyers from making offers. Before listing your home, invest a little time and money into it, adding noteworthy features prior to listing. In most cases, these investments return additional profit.

Is this Price Realistic?: Pricing directly affects how long your home is on the market before receiving an offer to buy. A home priced 5% too high will get a lot of showings, but no offers. This cycle can go on for months if no price adjustment is made. The longer your home is on the market the lower the eventual sales price will be. It is never encouraged to price your home based on past debts that need to be paid, retirement income or anything not directly related to the value of the home. We will avoid long market times by conducting comprehensive research of the market before we list your home, ensuring we sell quickly for the highest price possible.


Does the Appraisal Match your Price?: During attorney review, your lender will have an appraiser determine the value of the home. There are circumstances when appraisal reports will return lower than the proposed contract price; in turn, a low appraisal can affect the selling price of your home. If you are a seller and the appraisal and price are dramatically different, I would request a second appraisal for the property. Appraisers that typically serve in different areas, suburban vs. cities, tend to appraise homes to slightly different criteria depending on the home’s location; having an appraiser that regularly values homes in the area you are buyer or selling can increase the likelihood your home’s estimated value will better match the selling price.