Pricing Your Home
When it comes to pricing your home, it should be done with accurate market conditions and the most recent sales information (within the last 6 months) for your neighborhood or community. It shouldn’t be left to a gut feeling, a hunch or because my uncle said it can sell for more.
The simple fact is that price is one of the most important factors when it comes to selling your home quickly. It is one of the higher priorities that buyers look at for the homes they want to view. Now it’s important to keep in mind, that although price is set by you the home owner, you have to make buyers want to look at your property in the first place. Try to avoid the trap of letting your enthusiasm and emotion cloud your judgement…Remember overpricing is a mistake that can cost you dearly in the end.
The Importance of Pricing Your Home Properly
- Greater exposure to more buyers.
- Faster sale and less inconvenience to you and your family.
- Helps to prevent your home from becoming stagnant on the market.
- Helps generate more calls from advertising and increases sign calls from drive-by house hunters.
- Helps increase the interest and the possibility of higher offers or even multiple offers.
- Higher offers mean more money in your pocket.
Keep in mind that what is really important is how your home stacks up to or compares to other homes that are currently active listings or have recently sold in your neighbourhood. Remember that buyers will be doing comparisons with other homes.
Most Common Reasons for Overpricing Your Home
- You have modernized and renovated your home to a higher level.
- Your need to use the funds to pay off some debt, or move into a larger home and have a larger down payment.
- You purchased this home during higher market conditions (a Seller’s market) and you stand to lose money by selling it in a lower market.
- You don’t have the correct market sales figures, or had the wrong information.
- You are listening to advice from family or your neighbours.
- Thinking that by having a higher price, that you will have more bargaining or wiggle room for negotiations.
- You really don’t have to move, but want to test the market to see what you can get for your home.
- The city has assessed your home at a higher value for property tax purposes.
- There is a great deal of emotional attachment to the home.
The Dangers of Overpricing Your Home
Keep in mind that the highest amount of activity and buyer interest on your home will be in the first 3-4 weeks. So, it is imperative that we price your home properly which will help me in creating a sense or immediate urgency in the minds of both the REALTORS® and their clients. And this is absolutely crucial!
Most buyers and already seen most of the available homes in their price range that are currently on the market, either online or by viewing the home personally. They are always thinking in the back of their minds that there will be the “perfect home” that will that will come onto the market and they will jump on it. That is why the with the right pricing it will capture more eyes and interest in your home. The buyers are waiting…so don’t miss your chance! Don’t fall into the misconception that starting with a higher price is normal, and then assume that you can reduce it later and increase the interest and activity on your home. By the time you decide it’s time to drop your price, you will have passed that all important period and it may be too late as interest in your home has passed.
Another major cause for concern is that it can create problems with the appraisal of your home. Keep in mind that over pricing your home may lead to mortgage loans being rejected because the home they want to buy is overpriced. Even if you have done a great deal of renovating, and your home is nicer than other homes in your area, your home will be overlooked by online searches. For example, if you priced your home at $355,000, the cut-off on most real estate websites is $350,000. So, if a buyer’s top budget is $350,000 you just lost out on being seen by that potential buyer. However, by pricing your home at $349,900, yes you will loss a little over $5,000 in profit but you will be seen by more buyers in their searches.
Remember that agents and their clients will be fully aware if a house is on the market for too long. It will create hesitation in their minds in putting in an offer because they think that there might be something wrong with the home, or they will put in a lower offer because the home has become stagnant.
Over Pricing Your Home Can:
- It attracts the wrong type of buyer.
- You will reduce the number of qualified buyers that will be interested in your home.
- You may in turn help sell other similar properties that are priced lower than your home.
- You could lose even more money in the way of extra mortgage payments, property tax payments, home insurance costs and possible maintenance costs that might arise without you expecting it.
My Role as Your Real Estate Agent
I provide many services to sellers, including making sure the home is priced correctly in the current marketplace by performing a Comparative Market Analysis and looking at the properties listed and sold for the last 6 months. Comprehensively marketing your home online is a big priority for me, and I make sure your home is visible to as many people as possible.
A major advantage of working with me is the exposure your home will get through my website, my brokerage and the MLS® system. This is the network that REALTORS® use to search for properties for their clients. By listing you home on the MLS® it ensures that the maximum amount of people in Edmonton will be able to view your home and assess whether it matches their criteria. The more eyes that see your home, the more it will sell for.Overall, selling a property is not as simple as it may seem sometimes. It does involve large amounts of money, strict legal guidelines and the potential for costly errors. I can make sure that when you sell your home it meets all the requirements needed and you leave the transaction with the largest amount of profit possible.