We sit with sellers all of the time. We explain our processes, systems and marketing plan. But, inevitably everything comes down to price. How do you price your property for sale?
At what price will they list their home? Of course, we all want to maximize our investment when we sell. We all want to get top dollar so that we can move on to the next step in our life. To that end you should price your property for sale.
We complete an extensive Comparative Market Analysis, or CMA to establish a probably price range. We review all of the similar properties that have sold in the recent past. That gives us in idea of what people have been willing to pay for properties like theirs.
We look at homes that did not sell and contemplate the potential reasons.
Finally, we look at the current product available to compare what new buyers will see.
Almost always, a seller gravitates to the top of the spectrum in pricing. That’s great.….
Except,
It doesn’t matter what you want to sell for.
It doesn’t matter what you paid for it.
It doesn’t matter how much you need out of it for your next step.
What matters, is what someone is willing to pay for it. And what a lender is willing to underwrite it for, since most people don’t pay cash for houses.
…any lender ever…
When we look at the competition as a seller, we have to be able to compete.
What is compete?
That means one of three things.
1 – Be the best in the market – In any given area, if your home is the nicest with the most amenities, you should be able to price a bit higher. Having a home that is the cleanest and in the best condition will go a long way. But remember, the amenities MUST be what people are looking for. A bidet in the main bath may be a luxury, but are people actually willing to pay more for it?
2 –Be different from the market – Having a unique interior design or features that the average home does not have may afford you a better price. A massive oversize garage may get you more in the long run. But, remember… Not everyone wants that, so you may have to be very patient and be willing to list a long time to wait for that special buyer who will pay more for that feature.
3 – Be the cheapest in the market – Let’s face it. If our home is like every other one in the area, how can we expect a buyer to pay more? If your house is pretty much average to the others and you want it to sell, you have to price it to do so. That means you may have to price it as an average home for the condition and not at the top of the scale.
The choice is yours, not your Realtor’s®.
What the agent determines, is whether or not they can actually sell the property at the price you choose.