Pricing Your Home to Sell (cont)
July 20, 2007
In a flat or declining market (the market we are presently experiencing) pricing is critical for achieving a sale. Pricing a property too high, even in a rising market, increases the time a property will be on the market or increases the likelihood that the property will not sell. So how does a seller price a property in order to find a buyer who is ready, willing and able to buy it in a reasonable amount of time?
MARKET VALUE is the amount that will bring a sale between a willing buyer and a willing seller. It is based on the history of similar properties recently sold in the area. PRICE is the stated amount an owner is willing to accept for a property. A professional real estate agent will work with a seller to determine what that acceptable price will be or should be.
Factors that will influence a buyer are the actual location of the property, the amenities in the property and the competition of other properties with similar locations and amenities.
A good market analysis will show the seller what the competition is asking (homes presently for sale); the price at which similar properties have sold within the past several months (markets change and in the present market going back more than 3 or 4 months may give false expectations for today's market); the list price of properties presently in escrow, but not yet "sold"; and properties that were listed, but for which the listing period expired with no sale.
Pricing and market value ultimately are opinions, but based on data available, these opinions are educated and will price a property to achieve the desired outcome - a sale.
In a flat or declining market (the market we are presently experiencing) pricing is critical for achieving a sale. Pricing a property too high, even in a rising market, increases the time a property will be on the market or increases the likelihood that the property will not sell. So how does a seller price a property in order to find a buyer who is ready, willing and able to buy it in a reasonable amount of time?
MARKET VALUE is the amount that will bring a sale between a willing buyer and a willing seller. It is based on the history of similar properties recently sold in the area. PRICE is the stated amount an owner is willing to accept for a property. A professional real estate agent will work with a seller to determine what that acceptable price will be or should be.
Factors that will influence a buyer are the actual location of the property, the amenities in the property and the competition of other properties with similar locations and amenities.
A good market analysis will show the seller what the competition is asking (homes presently for sale); the price at which similar properties have sold within the past several months (markets change and in the present market going back more than 3 or 4 months may give false expectations for today's market); the list price of properties presently in escrow, but not yet "sold"; and properties that were listed, but for which the listing period expired with no sale.
Pricing and market value ultimately are opinions, but based on data available, these opinions are educated and will price a property to achieve the desired outcome - a sale.
posted by shirley harry at 8:42 AM
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