Some sellers believe it’s smart to price their homes high, yet, through the years we have learned that it is a fallacy to price a home for any reason other than what a qualified buyer is willing to pay, given market conditions and other sales. A home is worth what a buyer is willing to pay for it and what it will appraise for. That’s the bottom line.
Often sellers think …“Buyers want to negotiate, so we need room for negotiations.” Sellers tend to think that no one will pay the asking price for a home. In reality, if the home is priced properly, and the expectation is set with the buyers/buyer’s agent that there is no negotiating room … buyers will pay the asking price! In today’s market with low inventory and so many competitive bid situations, buyers are often willing to pay more than the asking price.
“We need to get a certain amount of money out of our home…what we paid, plus what we have spent on improvements.” The buyers don’t care about what was actually spent on improvements when looking at market value. However, we always make a list of improvements with associated costs that buyers can pick up along with the brochures we provide. Those improvements help the buyers with a perception of value. Improvements also matter to the appraisers if done within the past 5 years. That being said, a seller does not typically get dollar for dollar out for what they have spent.
“My neighbor’s home sold for a certain amount and I think my home is nicer, so my price should be higher.” That home must be compared to yours … ie, features and benefits, square footage, age, improvements and updates and more. An experienced agent can give you a picture of the entire market and then narrow it down to your subdivision or to the homes most like yours. The analysis will determine if your price should be higher or lower than your neighbors. In addition, buying a house is an emotional decision, so emotions factor in.
“The market is much better, therefore, my home should sell for a lot more than it was worth last year.” Your real estate agent will need to determine what homes are selling for in your specific area. Often one part of town appreciates much more than another and the stats need to be analyzed carefully.
Proper pricing is the most important part of the selling process. In order to obtain the highest possible price, it’s important for every seller to have professional and honest advice from an experienced Realtor who has knowledge in your specific area. Sometimes a house will sit on the market and it is hard for a potential seller to determine why. Typically, the answer is that the price is too high, or the condition of the home is not up to standard. There are other conditions that will affect the price … backing to a busy road, steep uphill or downhill driveway, synthetic stucco, little or no yard, mold, water in the basement, very dated inside (not up to standard,) among others.
If you want to get top dollar for your home, call us at 770-993-9572 to make an appointment. We’ll be able to tell you what your home should sell for, about how long it will take, and what it is we’re doing to get all of these homes sold. From there, you can decide what’s best for you!
The Lund Group
Top 1% Worldwide
Resource: excerpts from Talking Real Estate, Berkshire Hathaway Home Services