| In a competitive market with fewer
| |
| | price based on how the other homes faired
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| buyers, more homes for sale and longer
| |
| | in the market. The key to this method is
|
| market times, you want to do everything
| |
| | location: all of the homes considered
|
| you can to be sure your home doesn't
| |
| | must be in fairly close proximity to the
|
| linger on the market. An explanation
| |
| | subject house. Including homes outside
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| about why listings expire without selling
| |
| | the general neighborhood decreases the
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| and often without a single offer become
| |
| | accuracy of your comparison.
|
| harder to sell at the best price.
| |
| | Point 2 - The second step is to compare
|
| In a competitive market with fewer
| |
| | price per square foot. This works well
|
| buyers, more homes for sale and longer
| |
| | if the comparables are pretty much the
|
| market times, you want to do everything
| |
| | same with the amount of finishing,
|
| you can to be sure your home doesn't
| |
| | garages, etc. The result gives a range
|
| linger on the market. Listings which
| |
| | of consideration. The subject home's
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| expire without selling and often without
| |
| | condition influences whether the
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| a single offer become harder to sell at
| |
| | appropriate target price is at the higher
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| the best price.
| |
| | or lower end of this range.
|
| While you can't control the market or the
| |
| | Point 3 - An Area Market Survey (AMS)
|
| buyer pool, there are things you can
| |
| | considers the overall current market
|
| control when trying to sell your home.
| |
| | conditions. By comparing the number of
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| We've already addressed how home
| |
| | homes currently available with the number
|
| condition, staging, and aggressive
| |
| | sold over the past year, we estimate the
|
| marketing can improve the odds that your
| |
| | absorption rate or how long it would take
|
| home will fare well against the
| |
| | to sell out of all the current homes for
|
| competition. The final element is
| |
| | sale. A high absorption rate generally
|
| setting the right price.
| |
| | reflects higher inventories and longer
|
| The key here is "the right price." A
| |
| | market times with the implication of
|
| home in perfect condition, staged well,
| |
| | softer prices in the future. A low
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| and aggressively marketed will sell for
| |
| | absorption rate is usually a sign that
|
| top value when the price is appropriate
| |
| | prices are on the rise. Knowing how
|
| given market conditions. The price will
| |
| | market conditions are trending can help
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| suffer if any of the three elements is
| |
| | you decide how aggressive or conservative
|
| inadequately addressed. However, if a
| |
| | you should be with your pricing.
|
| home is overpriced it won't sell, even if
| |
| | Point 4 - Finally, the current
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| it is in pristine condition, shows well
| |
| | competition in the targeted price range
|
| and is marketed appropriately.
| |
| | needs to be considered. Analyzing the
|
| A home's asking price is the final
| |
| | pros and cons of those homes with respect
|
| determinant in how quickly it sells and
| |
| | to yours can help you fine-tune your
|
| whether the sale price approaches the
| |
| | pricing strategy. Potential buyers will
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| home's value.
| |
| | compare your home to the competition so
|
| A quick word about "the home's value."
| |
| | it is very important that you do so as
|
| Basically, a home's value is what two
| |
| | well before setting the price. If your
|
| parties agree on as a selling price. It
| |
| | home is the nicest in the price range you
|
| doesn't matter what you paid for it, how
| |
| | should be in good shape. However, if
|
| much you have spent for maintenance or
| |
| | there are other homes just as nice or
|
| improvements, how much you need to get
| |
| | nicer in the same price range, you need
|
| out of it, or what the county's
| |
| | to adjust accordingly. Remember that
|
| assessment says. Market conditions are
| |
| | these homes have not sold yet and they
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| much more important in determining your
| |
| | may need to come down in price before
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| home's worth at that moment in time. The
| |
| | they do. You are better off pricing
|
| bottom line is determining at what price
| |
| | slightly below ALL of the competition to
|
| range you will find a buyer who is
| |
| | insure a profitable sale. A lower
|
| willing to pay that amount for your home.
| |
| | initial asking price and a quick sale are
|
| So how do you determine an asking price?
| |
| | more likely to put more money in your
|
| Appraisal, county's assessed value,
| |
| | pocket than a higher asking price that
|
| replacement cost, and current competition
| |
| | needs to be lowered several times over a
|
| are some of the ways a home's value can
| |
| | longer amount of time.
|
| be determined. The best way involves a
| |
| | Once you have studied all 4 indicators
|
| combination of all of these. Several
| |
| | look for a convergence of value. That
|
| years ago I developed a very accurate
| |
| | price is usually the right price!
|
| pricing method that I call "4 Point
| |
| | Ultimately, the decisions you make will
|
| Pricing."
| |
| | influence how quickly your home sells.
|
| 4 Point Pricing
| |
| | If you are willing to take the time to
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| Point 1 - The appraisal method (often
| |
| | prepare your home for sale, select a
|
| referred to as a comparative market
| |
| | realtor who will aggressively market your
|
| analysis) considers three other homes in
| |
| | home, and carefully assess market
|
| the immediate area making adjustments for
| |
| | conditions when setting your asking
|
| quantifiable differences such as a
| |
| | price, you can increase the likelihood
|
| finished basement, more or less square
| |
| | that your home will sell quickly and for
|
| feet, garage stall count, or walkout
| |
| | top dollar, regardless of the market
|
| lower level. This initial consideration
| |
| | conditions.
|
| gives an indication of the subject's
| |
| | Copyright © Shawn Buryska.
|
