Deciding on a price is going to depend on many things. First of all, how motivated are you? Are you willing to price lower than the competition to get the interest in your home? Are you able to position yourself in the market to be competitive with other homes in the area similar to yours? Buyers are typically looking for the best home they can get for the least amount of money. Are they going to find you?
Second, you will need to look at what you owe on your home. Unfortunately, there are many people in this country who are “underwater” or who owe more on their home than it is worth in today’s market. There are many resources out there currently to help owners who are struggling to make their home affordable. I encourage you to check out http://www.makinghomeaffordable.gov/Pages/default.aspx to see if there is anything you can do.
Once you determine that you can get out of your home, work with your Realtor to set the right price. Homes that are priced right sell quickly! I can help you! The following is an excerpt from an article from Move, Inc. I hope you find it helpful.
Jennifer
Pricing for Success
Pricing for Success
Every reasonable owner wants the best possible price and terms for his or her home. Several factors, including market conditions and interest rates, will determine how much you can get for your home. The idea is to get the maximum price and the best terms during the window of time when your home is being marketed.
In other words, home selling is part science, part marketing, part negotiation and part art.
What is your home worth?
All homes have a price, and sometimes more than one. There's the price owners would like to get, the value buyers would like to offer and a point of agreement which can result in a sale. In considering home values, several factors are important:
• The value of your home relates to local sale prices. The same home, located elsewhere, would likely have a different value.
• Sale prices are a product of supply and demand. If you live in a community with an expanding job base, a growing population and a limited housing supply, it's likely that prices will rise. Alternatively, it's important to be realistic. If the local community is losing jobs and people are moving out, then you'll likely have a buyer's market.
• Owner needs can impact sale values. If owner Smith "must" sell quickly, he will have less leverage in the marketplace. Buyers may think that Smith is willing to trade a quick closing for a lower price -- and they may be right. If Smith has no incentive to sell quickly, he may have more marketplace strength.
• Sale prices are not based on what owners "need." When an owner says, "I must sell for $300,000 because I need $100,000 in cash to buy my next home," buyers will quickly ask if $300,000 is a reasonable price for the property. If similar homes in the same community are selling for $250,000, the seller will not be successful.
• Sale prices are NOT the whole deal. Which would you rather have: A sale price of $200,000, or a sale price of $205,000 but where you agree to make a "seller contribution" of $5,000 to offset the buyer's closing costs, pay a $2,000 allowance for roof repairs, fund two mortgage points, re-paint the entire house and leave the washer and dryer?
How much is too much?
Because all transactions are unique there is flexibility in the marketplace. The amount of flexibility depends on local conditions.
For example, suppose you're selling a townhouse. Suppose also that there have been five recent sales of the model you own and that sale values have ranged between $200,000 and $210,000. You now have an idea of how your home might be priced. In a strong market perhaps you can ask for $210,000 or a little more. If the market has slowed, $210,000 may be a reasonable asking price, but perhaps more than the final sale price.
Who can help?
Experienced REALTORS® are active in the local marketplace and can provide assistance with pricing, marketing, negotiation and closing.
Because experienced REALTORS® have handled many transactions, they're familiar with the terms and conditions that went into individual sales, not just published sale prices which may not reflect various premiums, discounts and adjustments.
Copyright © by Move, Inc.
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