Proper pricing is dependent on several
factors, the most important being recent comparable sales
in the neighborhood, what is currently on the market in competition
with your home, and the condition of your home. These factors
can change rapidly within months, so a current market analysis
(CMA) on your home is crucial to pricing your home correctly.
Price it too low, you lose some of your equity, price it
too high you lose potential buyers.
The most common mistake is over-pricing. Overpricing your home means
it sits on the market longer, and one of the first questions a buyer
usually asks is how long a property has been on the market. The longer
your home has been for sale, the more the buyers are inclined to
believe something is "wrong" with it, and the lower the
offer will be.
What Does NOT Affect a Home's Value
-
What you paid for
the home.
-
What you put into
your home in remodeling or decorating. These are features
which really only enhance a home's desirability and make
it sell faster.
-
The amount of cash
you need to buy your new home.
-
What you say your
home is worth.
-
What I say your
home is worth.
-
What another agent
says your home is worth.
-
What an appraiser
says your home is worth.
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What DOES Affect a Home's Value
-
Location of the home.
-
Major improvements
on the home (pools, covered patios, etc)
-
Recent comparable
sales within the last six months
-
Current competition
on the market
-
What a sophisticated
buyer is willing to pay based on his comparison of your home
with others currently on the market. Agents and sellers set
list prices, but buyers determine value!
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