Pricing Misconceptions My truthful advice serves you best.
Factors that don't affect the value of your property.
WHAT YOU WANT
WHAT ANOTHER AGENTS SAY
COST TO REBUILD TODAY
WHAT YOU PAID
WHAT YOU NEED
It is very important to price your property competitively when you first put it on the market. Historically, your first offer is usually your best offer.
Pricing your home right is the most important decision you can make when we list your home. Pricing yourself outside the market when you are trying to test the current market response can be detrimental to your bottom line. Over pricing your home for the current market can be the difference of receiving market value and over, or having to sell it at that "get rid of it price," way below market value.
Understand before you respond.
Buyers Determine Value.The value of your property is determined by what a BUYER is willing to pay in today's market. Buyers make their pricing decision based on comparing your property to other properties that have SOLD in your area.
Why you CAN'T afford to overprice your home.
Timing is extremely important in the real estate market.
It has the greatest opportunity to sell when it is new on the market.
A property attracts the MOST activity from the real estate community and potential buyers when it is first listed.
Don't price yourself OUT of the market! To get your home sold for the most money in the least amount of time, we have to price it "in the market."
Your BEST offer...
There’s an old real estate rule of thumb that the first offer you receive is usually the best one. I’ve run into this with several listings where the seller received an offer early on, made a stiff counteroffer back to the buyer and the buyer headed for the hills. In some cases, as much as 12 months and several price reductions later, another offer finally came in only to be significantly lower than the first buyers’ offer. While your first offer may not be what you were hoping for, it is a good idea to consider several things when choosing how to respond to that offer. Length of time on the market, time of year, initial asking price compared to the price recommended by your agent, and current competition should all be taken into account when determining whether to accept, reject or counter the first offer you receive. It may be tempting to hold out for a better price, especially in the first few weeks that your home is on the market when there is a high volume of showing activity. However, that activity typically slows down after about three weeks, at which point the buyers who have been waiting for "just the right house" will have already considered your property. Buyers rush to see new listings, and if it’s the best thing they have seen they will probably make an offer. Most of these buyers have been at it for a long time and know the market very well including your competition. Therefore, an offer received in the first few weeks on the market is probably appropriate to current conditions and worth serious consideration. Comparing the offer to your realtor’s initial price recommendations can help you decide what action to take. After the first several weeks, the activity that remains is buyers just entering the market. Since they are at the beginning of their house hunting, they generally have more time to look and are less motivated to act quickly. They are less educated about the market than those who have been shopping for a long time and they tend to err on the side of caution when making their offers, especially in a buyer’s market. Time on the market erodes value as well. The longer a house is listed for sale, the less interested buyers and Realtors are in the property. People will begin to wonder what is wrong with the property, and even if they like it will offer a lower price so they won’t lose money if they end up having to sell. While your first offer may be lower than you had hoped, every month you keep the property on the market is another month you must pay mortgage, taxes, utilities, and insurance for a home you are hoping to leave. These costs can add up quickly and end up costing you more in the long run. Time of year is another factor that can affect the offer. Your offer in March or April will most likely be much higher than in September or October. Sellers who were optimistic in the spring will be lowering their prices quickly to try and sell. The bottom line is that you are never in a better position to get the best price for your home than when it is fresh on the market. Even if the offer and subsequent negotiations are less than you are hoping for, don’t kick yourself months or even years later wishing you had taken the offer. That real estate rule of thumb stays true: your first offer is usually your best.