Pricing and Selling Your Home in Today’s Environment:
An educated consumer is your best customer in Real Estate Today.
Written by: Toni Chrystal, Licensed Associate RE Broker, ABR, Trainer and Coach
Sellers have a dream…Most sellers dream of getting multiple bids on their property. There is nothing more rewarding than being able to say we received our asking price or higher. When it comes to pricing and receiving multiple bids the idea is to price the house at market value or just below what the comps show as market value. Let’s be clear, market value is what the home is worth at that time in the marketplace… not 5 years ago! Keep in mind you can never underprice a house because the buyer’s in the marketplace won’t let that happen. Hence, an educated consumer is your best consumer in Real Estate today.
Market Value...It is virtually impossible to pinpoint the exact selling price or exact market value of a home, but you should be able to justify a listing price range with a low and a high recommended price. Keep in mind you have to sell the house three times; first to the agents, second to the potential buyers and third to the bank appraiser. The marketplace provides an enormous amount of information for the buyers to digest and today’s buyer is fully focused on the job of buying a home. They come to the table fully educated on price values. Hence, an educated consumer is your best customer in Real Estate today.
Pricing…A clear indication of pricing the home to sell in order to gain a multiple bidding environment is a good amount of showings that result in offers presented quickly for very close or at asking price. The early offers are the best offers, and you may not see them again; therefore, owners should seriously think about those that come in first. These buyers are generally ready to make the move and have already shopped the marketplace enough to feel comfortable making an offer. Hence, your educated consumer is your best customer in Real Estate today.
Reductions not favorable...If a house is priced over the market value you will see fewer showings, and no offers, not even low offers in most instances. The feedback will keep coming back the same, of course, the favorite is “it needs work” this will result in adjustments to the price. The longer a home sits on the market at the wrong price, the less likely you will receive asking price. Think of it like this… when shopping for any retail item, the item starts out at full price and if the value is clear to the consumer they will purchase it no matter the cost, they have to have it and the value is clearly obvious for them. If the value is not clear to the consumer, they will just wait until it the item hits the sale rack. The question owners need to ask themselves, do you want your home on the 25% rack the 50% rack or the 75% rack?
Getting the home ready for a successful sale…Well priced homes that also show well sell quickly. If you want a quick sale, you need to invest some serious time in getting the house ready for a successful sale. This means prepping the home to sell and show well. Some suggestions and easy inexpensive fixes would be to remove large pieces of furniture and personal items, painting with neutral colors, replacing carpets, finishing floors and even doing some minor renovations such as updating bathrooms and kitchens. Focus on kitchens and bathrooms, decluttering and cleaning, when in doubt throw it out. Fix obviously issues. A well maintained home will indicate to the buyer that this house was well cared for. Hence, an educated consumer is your best customer in Real Estate Today.
Disclose and Inspect…Disclose and inspect upfront consider having a pre inspection to find out any hidden problems that might come up on an inspection and fix them before you list the home. By presenting disclosures upfront, and even providing buyers with a copy of a recent inspection report, you can help them get more comfortable with the home. If you price the home to account for whatever work needs to be completed or for disclosure red flags, buyers will feel more confident, and may make an offer much more quickly. There is little risk in disclosing and inspecting. If you try to hide something and the buyer discovers it later, you can expect the deal to fall apart or be asked to make concessions. Hence, an educated consumer is your best customer in Real Estate Today.
Internet Appeal vs. Curb Appeal…The new norm is how will your property look online. The first point of exposure is the Internet. Let’s face it, we are now at a place where the majority of buyers look online first. Think about it, if the presentation online doesn’t have any appeal to the viewer, they never make it to the curb, therefore, never view the property. Hire the real estate professional that understands the value of the Internet and how important it is to have professional photos and enhanced write ups that tell the story of your home and draw the buyer to want to see more.
Selling your home is a major undertaking...Spend time strategizing and preparing the home for the market. Keep in mind pricing, staging, presentation and disclosure go hand in hand. Getting the most out of your investment is essential for your future. If you want a quick sale, price it right, present it in its best possible light, and go out of your way to make buyers feel comfortable with all aspects of the home. Hence, an educated consumer is your best customer in Real Estate Today.