Pricing your home

THE BENEFITS OF PROPER PRICING

There are several benefits of properly pricing your home.  They include:

1)  FASTER SALE:

• When your home sells faster, you save carrying costs which include mortgage payments, taxes, insurance, and maintenance.
• Proper pricing creates less demand on you.  A faster sale creates less inconvenience to you.  If you have moved before, you know the energy it takes to prepare for a showing: keeping the home clean, arranging for pets, children, and altering your lifestyle.
• Pricing at market value will gain your home more exposure to the prospects who can afford it.
• Sellers who list at above market value are looking for that one buyer who may be willing to overpay.  What isn't realized is that this practice discourages many potential buyers who could have afforded the home.
• Sellers often accept a much lower price at a much later date since that one buyer willing to overpay never comes along, costing you more of your time and more carrying costs.
• The 3 major things that affect a sale are location, condition, and price.  You cannot controt the location, but you do control the conditon and the price.

2)  INCREASED SALES AGENTS RESPONSE:

• When Realtors are excited about a home and it's fair price, they make special efforts to contact all of their potential buyers.  Knowing that it is priced properly for the current market, they expect it to sell soon and encourage their prospects to act quickly.  Their excitement is contagious!

3)  BETTER RESPONSE FROM ADVERTISING AND SIGN CALLS:

• Ad calls and sign calls to Realtors turn into showings when price is not a deterrent.
• Serious buyers are well educated about asking prices in the areas they want to live in.
• Serious prospects don't waste their time on a home they consider overpriced.

4)  HIGHER OFFERS:

• Buyers fear they might "lose out" on a nice home when it's priced right.
• Sellers are less likely to receive "low ball" offers.
• Better pricing attracts multiple offers which can lead to a bidding war.

5)  MEANS MORE MONEY TO SELLERS:

• Your asking price should be determined by recent sales of comparable homes in your immediate area.  Pricing a home right at the time you first put it on the market is important since that is when it will get the most attention from buyers.  You may think you want to start out higher and test the market but this usually results in you losing buyers that may have been interested from the 1st day on the market, not 6 weeks down the road.  Think of it this way, for every month that your home is not sold due to being priced too high, you have lost money due to another mortgage payment, taxes, utilities, possible association fees, insurance, and maintenance and by not being able to make the move you want to make.  A quicker sale can save you thousands so being priced right at the beginning is very important.