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Pricing Your Home

Pricing your home is both an art and a science. Luckily we have an analytical background so we're never guessing.

When we price your home correctly:

Attract qualified buyers
Higher volume of showings (which leads to more offers)
Provides the highest potential of maximizing your sale
Less "tire kickers" or "time wasters"

Price will always be the number one factor that homebuyers use when determining which homes to view. Remember, although you set the price, the market decides what the home is worth.

We know we love your home, and all the joy it has brought you. It's important to remember homebuyers don't have an emotional connection...yet!

Although it might seem logical to overprice your home to get more money, however it tends to cost you more than you'd know.

The typical FIRST price reduction is $25,000 - $50,000 (sometimes more)

Why It's Important To Price Properly

Faster Sale with less inconvenience
Exposure to more buyers.
Realtors are your friends...You want them to tell all of their clients!
Generates more interest and competition (call volume, showings, etc)
Attracts higher priced offers
More money where it belongs...in your pocket!

Homebuyers will be sizing your property up to others that are currently offered for sale and homes recently sold in your neighborhood.

Buyers now have more resources readily than ever before!

Common Reasons Sellers List Too High

Spent too much on upgrades and comparables don't meet costs
Over leveraged, needing to recoup more than what the home is worth
Climbing up the property ladder or moving to a higher-priced area
Purchased the home for too much originally
Lack of understanding data and trends (improper advice)
Leaving "room to bargain"
Testing waters - waiting for the "right" price to sell
Opinion and influence from family members/neighbors
Not staying ahead of the market - instead they follow it

Overpricing - What's the Cost?

You get the most traction the first week of listing your home. A proper marketing strategy creates urgency and pent-up demand. Consider these tips to for getting your house ready to sell - creating urgency leading to a quicker sale.
Typically your first offer is your best offer. This is because buyers who have seen enough homes are ready to take action. If you overprice they will buy your neighbors home, not yours. I bet you've seen that before.
Don't start at too high of a price with the assumption you will get your "actual" price. Remember, the typical price reduction is $25,000 - $50,000.

Ever heard of appraisal risk? If not, the homebuyers likely have.
This occurs when the banks deem the purchase price to be over market value, and will only loan a percentage of the total purchase price. Hope you got extra cash!
Even if you have the nicest home on the street, if the price is too far from the "second best" you won't get picked for showings.
The longer your home sits on the market, the less buyers offer for your home.
In a downwards market, you can become overpriced very quickly.

If you want to Sell Your Home Fast, overpricing is one way to hinder that.

The Role of a Real Estate Agent in Pricing

You will receive a detailed CMA (Comparative Market Analysis) including recent sales, trends, market stats, your competition aka active listings.
We can't predict the future nor do we have crystal balls. We do have years of experience and can provide a low, medium and high estimate and explain the benefits of pricing at each tier.
We don't tell you what WE think your home is worth, we SHOW you.
The market determines the value, we determine the price
You determine the price based on the following factors:
-Total Marketing Time (do you prefer a quicker or longer sale)?
-Financing Alternatives (do you want bridge financing)?
-Conditional Offers (do you want to avoid conditional offers)?
-Exposure Methods
Markets change quickly. Your agent will keep you informed in real time
Receive a "Net Sheet" to get an estimate of the total cash you receive upon completion of the transaction.