The most important step before listing any home is to take the time to discover the most realistic sales price range for your property. Today’s buyers are more educated than ever due to ease of access to information via the internet. The market will penalize incorrect pricing and demonstrate that it is much more efficient than sellers are aware of. Property sellers should not ignore any market driven facts! Even though many sellers think a marketing and listing discussion comes first when considering a property sale, the wrong price position in the market might negate even the greatest marketing efforts. Can buyers actually compare properties? Well, yes...
You Can Compare Apples To Oranges
The biggest challenge in real estate pricing is that residential property is not a single known commodity like a barrel of oil or a coffee bean. Because of the many differences from one property to the next, it’s difficult to find the right price even when properties share many of the same features. Therefore, the assumption is that they can’t easily be compared. Not True! In fact, it’s possible and necessary to compare properties of different styles to each other, because all final sale prices in any neighborhood have a measureable effect on each other. So how do you compare true values?
Simple Math Reveals Your True Market Position
Have you ever wondered how it’s possible for technology to deliver an instant home evaluation online? It’s because there’s more than enough public data available to predict the potential sale price range of your property. Simply put, all the public data regarding a particular property is run through a mathematical algorithm that then provides an estimate of value. It’s a good place to start and shouldn’t be ignored, but that information is only one component of a professional and thorough market price evaluation. In order to narrow the trading range you must arrange a property visit by a professional Real Estate Agent to assess condition, location and many other factors that will affect the final market sale price. In spite of this up front effort to determine the correct price range, many sellers will ask, “Why not just price my home at the highest end of the range or beyond?
Pricing Even Slightly Out Of Range Prevents Offers!
When a property is priced even a few percentage points outside the predicted trading range, it may cause low buyer traffic, increase days on the market and prohibit showings that eventually lead to offers. This is a price problem, not a market problem. One of the most painful and perhaps desperate positions to be in as a seller is when you end up frustrated saying “why can’t my agent bring me an offer”. Instead simply adjust the price into the range where multiple buyers have the incentive to view the property along with competing properties in the same price range.
We realize that discovering your true and accurate price range is a complex process, so please feel free to contact us to arrange for an in home consultation on how to establish your property’s current market position.
Understanding that you must start the property sale process by learning how to establish the right price range will set up course module #2 where you will learn how to improve the condition of your property in order to increase its value.