When an owner decides to sell their home, shouldn’t their goal be to get the best possible price, in the shortest possible time, in a way that minimizes stress and strain throughout the process and period? When selecting your agent, you should choose someone who will take the time and effort to thoroughly articulate your reasoning, approach, and how you might work together, agent and client, for the best possible results. This often starts with a clear and focused effort to price the home up front, because almost all studies and assessments indicate that most homes get their best deals in the first few weeks after that they are listed on the real estate market. This article will attempt to briefly discuss 5 considerations in pricing a home to sell.
1. Market conditions: There is no single way to price a house. Specific market conditions vary, periodically, and should have a significant impact on how to proceed. Is there a buyers or sellers market? It is a Buyers Market, when there are more sellers than buyers, and a Sellers Market, when there are fewer houses for sale.
2. Competitive Market Analysis: The best way to determine the listing price should be by using a competitive market analysis, or CMA. based on differences. When homes are priced right from the start, they will generally attract the most qualified potential buyers.
3. Economy: Economic considerations are an important factor in pricing. When the overall economy is strong and there is strong consumer sentiment/confidence, as well as a strong job market, more people are looking for homes, which, based on the concept of supply and demand, drives up prices. On the contrary, when it decreases, it generates less interest and the need to adjust prices.
4. Mortgage Rates: Most buyers buy their home by taking advantage of a mortgage. So they look at their monthly expenses and costs, and when interest and mortgage rates go up, too, fewer people can afford something, because it costs more to buy a house at a specific price. When this reduces demand, the house often sells for a lower price.
5. Specific strengths and weaknesses: Although houses may be similar in terms of size, interior and exterior, etc., each property has specific strengths and weaknesses that affect prices. The first is location, because certain areas may be more sought after and therefore buyers may be willing to pay a higher price there. Improvements, updates, condition (specific and general), design, curb appeal, etc., will make or break the potential sale price of a particular home.
When you objectively consider these 5 considerations and price the home accordingly, you improve the potential sales price. Owners must identify and select the best agent for their specific needs!
