Price it Right and They will Buy
Zillow says your home is worth $535,000. The assessor says $405,000. You think your house is worth $750,000. What is your house worth? Whatever a buyer is willing to pay for it. Market conditions drive pricing. In the current climate where there are thousands of homes on the market, buyers have the edge. Buyers have more houses to choose from so a seller needs price their house competitively or ensure that the house has added features over and above other similar houses.
If there are twenty homes in a neighborhood for sale that are equal in pricing and size, buyers will look at other things. Does the house back to a park or a busy street? Is the kitchen upgraded or does it need work? Is the upgrade worth the increase in price or is the buyer better off staying in the lower price range.
If everything else is equal, the buyer will purchase the home that has the lower price.
How do you set your price?
1. Get a good comparative market analysis. What has sold in your neighborhood in the last three to six months? Your Realtor can provide that information. You will also want monthly updates once your house is on the market to determine if you need to make additional price adjustments.
2. Look at your competition. If the house next door is of similar size and in the same condition, don’t price your house $20,000 higher. On the other hand, if the inside is painted black, you may be in good shape. This is a good time to visit all the open houses in the neighborhood.
3. Determine how long you are willing to wait. The higher the price in comparison to your competition, the longer the house will sit on the market. If you are looking for a quick sale, price it fairly or even a little below market.
The most activity on a home is usually when it first goes on the market. The more buyer visits you have, the more likely that someone will find your house to be a good fit. If it’s time to make your move, take the necessary steps to price it right.
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