The advice of a REALTOR in your area will also help determine these factors.
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called â€œchasing the curveâ€) and Buyers will be asking the question; â€œWhatâ€™s wrong with that house?â€ and â€œWhy has it been on the Market so long?â€
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; â€œArenâ€™t you obligated to sell at this price if someone offers it?â€ The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
You should hire a reputable local agent/broker who is experienced and available, because you are not going to save the money you think you are - most buyers want to have an agent so you will pay that fee, and most agents will deduct the other half from the price anyway - and you will avoid liability issues and having to do all that work for nothing.
The appraisal is a good start. It will tell you the fair market value based on the past sales data for similar comparable homes. However, remember that this data is what happened in the last 90 days, not what is happening. The real estate market is constantly changing and right now there is more activity than in the last five years. Many homes are receiving multiple offers and selling in only a few days. I am also noticing the sellers are changing the negotiation time frames by collecting offers for a week and then selecting an offer. As per the contract a seller usually has only three days. The increase is a reflection of the current sellers market.
Setting a price on your home is one of the most important aspects and should be done with an experienced Realtor, who is highly motivated. Frequently I see a listing from seasoned Realtor that only have three or four poorly taken pictures. Find someone who will really make a commitment to help you.
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In my area of Santa Clarita there is so little inventory buyer's are paying over appraised value just to buy a home.
I suggest interviewing three local Realtors in your area and get their opinion.
Your REALTOR should be assisting your in getting and explaining the current market information to help you make a decision. I often put together a spread sheet for my clients of the comparable properties to include any concessiona adjustments, upgrades, condition, type of sale, type of financing, etc... as it helps to "SEE" them side by side. Your appraisal (if very rencent) is another valuable tool. In my opinion, it is important to have current MLS data (and not rely on data from other internet real estate sites).
Marcie Sands, REALTOR
Simply The Best Real Estate Co., Inc.
1. 42% from the Internet.
2. 36% from a real estate agent.
3. 10% from a yard sign/open house.
4. 6% from a friend/neighbor/relative.
Be sure to cover all these bases and you will be in good shape. Also, being willing to work with buyer's agents is likely the best thing a FSBO seller can do to get their home seen (it covers bases #1 and #2 above). Search the web for 'flat fee MLS' to get your home on the MLS for a flat rate and work with buyer's agents. Good luck and let us know if you have any questions!
Your appraisal is a great starting point. Having a professional Realtor provide a current market analysis after looking at your home is the next step. Houses are moving quickly right now and often with multiple offers. Which sounds great and easy but needs to be managed well by a pro. This is not a time for do it yourself! Let me know if I can help.
An appraisal is an opinion of value; it's not a selling strategy. I've had appraisals come in higher or lower than the negotiated price of a home. Appraisals are a backward looking view of what has recently sold, but recently could be as long as six months ago.
My opinion is that a great local agent who is active in the market will have a great handle on your market, the direction its heading and how you can get top dollar for your house.
I've written a blog series called 4 Keys to Selling your Home Quickly and for Top Dollar. I've linked to it below. The 4th key is about being priced appropriately.
If you need a referral to a great local agent, let me know. Best of luck, I hope my blog helps.
The short answer is to find out what comparable homes in your area have recently sold for and make some adjustments to your asking price based on factors such as age, size, features and location. Homes are selling very quickly now due to a shortage of properties on the market and many homes are receiving multiple offers. In other words, you can price aggressively.
However, it's good to bear in mind that your initial asking price is like a first impression. If you don't price fairly and accurately and later have to adjust your pricing you set up a negative mind set in buyer's minds. They wonder what might be wrong with the property if you've reduced the price, will often bring you low offers because they may assume you are open to a bigger reduction in price, or they don't make offers at all. This opens up a situation where your property sits on the market and then buyer's wonder what's wrong with it that it didn't sell quickly.
If I can be of further assistance, please give me a call or email. Best of luck in selling your property.
Some sellers agent will tell you that you should list your home well below the market value so that multiple prospective buyers will be interested in purchasing it, and therefore, enter into a bidding war. The problem with this theory is that the possibility of a bidding war may scare off the right buyer! Or, even worse, it may attract unqualified buyers who can't afford the home but are searching for a bargain. Either way, you don't want the gamble to backfire, so it's best to list the home at a reasonable price where all parties involved will be satisfied when it sells.
Many homes are selling above asking price and can have as many as 20 offers placed within the first few days. That means a lot of phone calls and many showing appointments for one to endure which could be stressful and tiring. Pricing, Marketing, and Negotiating are 3 keys to selling your home, so
I would like to either have a phone consultation with you or sit down with you to discuss the process of listing and selling your home.
If you plan to sell your home without an agent then I could offer you a few FSBO options to save you money. If you want to hire an agent to walk you through the process from start to finish and ease the stress of selling your home, then call me anytime, as I'm available 24/7 for my clients.
Keller Williams Realty
Dana & Eva 888-408-4888
Appraisal is a good start but today's market is changed and you never know what you can get for your home unless you put it in the market and let the buyers see your home. I do agree with Miguel Bush as for as supply and demand, and it is seller's market for sure, because of low inventory.
Feel free to contact me anytime.
The response by potential buyers will let you know it it is priced correctly. If no one comes to see the home then it is too high. If lots of people come to see it then you are on the market or maybe a bit low. If you are low then you can counter the offers to get the best price.
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location will determine how fast you can actually sell your home.
Depending on the area, I've seen buyers willing to buy above appraised price and willing to make up that difference in cash.
Areas by the coast are always in big demands, few inlands are also doing extremely well.
Take advantage of the current market in San Diego.
Also, please make sure you "prepare" your home for sale: even though the homes I've listed have been flying off the market, it is also good practice to take those few extra steps (small and inexpensive) that give your home the highest and best chance to receive multiple offers at or above asking price.
If you need an additional pricing suggestion on your home please email me; It's free! I'll send you some similar homes that sold in your area so that you can have a better idea.
Good luck with the sale!
You have taken an important step forward by having an appraisal done on your home. Now, it's time to speak with a REALTOR like myself. I would be happy to meet with you, view your home and give you an opinion on how to price it. There are many reasons why people list their homes for sale. That would be a very important piece of information I would need to know.
I've been a full-time REALTOR for 10 years and my partner, Alma and I would be delighted to speak with you directly. My contact information is: firstname.lastname@example.org. My cell phone is: 619-987-8766.
I do hope you'll give us the opportunity to meet with you soon.
REALTOR, ABR, CID, SFR
Silvercrest Realty Group, Inc.
Keller Williams Realty