Pricing a Home in Today's Market
February 17, 2009
I would like to quote from an article that I saved from the Broker Agent News web site. It was written by Jim Remley of Pro Performer Seminars and it was a right-on analysis of "The Secret to Pricing Your Home to Sell".
" Contrary to popular belief, when selling your home its value is determined by one thing and one thing only - what a qualified buyer is willing to pay for it. No more and no less. Sure, many sellers will argue that their home has an insurance replacement value, or an appraised value, or a tax assessed value, but unless your insurance agent, your banker, or your tax assessor is willing to write you a check for the home - guess what? None of that matters. A home without a buyer has no value in the market place. Sure it might have a value to you the seller, and it might have a value to your banker, and to your insurance agent, and to your appraiser. But none of these people are buyers."
So what are the factors that influence the selling price in today's real estate market?
1. What similar properties have sold for within the last ninety days.
2. What are the prices of similar properties buyers are finding on the Internet. Today's buyers are becoming so knowledgeable about the market that they can guess with reasonable accuracy when a property is priced well.
3. How up-to-date your property is. Does it have granite counters? Have the windows been replaced? Does it have a master suite with a large bathroom and a sitting area? These are some of the amenities that today's buyers want. Since they now have to have a sizable down payment, they will not have money left over to make improvements. Hence "dated" homes will be discounted in the current market place.
Overpricing and planning to wait for a change in the real estate market are poor strategies for a seller that wants to or must sell. If you owe more than a market analysis suggests is the current market value. you may need to make some hard decisions, but putting your property on the market at a price which is unsupported by market data will not solve your problem.
If you need to sell in today's market, find a professional real estate agent and trust the opinion of value that there analysis projects.
I would like to quote from an article that I saved from the Broker Agent News web site. It was written by Jim Remley of Pro Performer Seminars and it was a right-on analysis of "The Secret to Pricing Your Home to Sell".
" Contrary to popular belief, when selling your home its value is determined by one thing and one thing only - what a qualified buyer is willing to pay for it. No more and no less. Sure, many sellers will argue that their home has an insurance replacement value, or an appraised value, or a tax assessed value, but unless your insurance agent, your banker, or your tax assessor is willing to write you a check for the home - guess what? None of that matters. A home without a buyer has no value in the market place. Sure it might have a value to you the seller, and it might have a value to your banker, and to your insurance agent, and to your appraiser. But none of these people are buyers."
So what are the factors that influence the selling price in today's real estate market?
1. What similar properties have sold for within the last ninety days.
2. What are the prices of similar properties buyers are finding on the Internet. Today's buyers are becoming so knowledgeable about the market that they can guess with reasonable accuracy when a property is priced well.
3. How up-to-date your property is. Does it have granite counters? Have the windows been replaced? Does it have a master suite with a large bathroom and a sitting area? These are some of the amenities that today's buyers want. Since they now have to have a sizable down payment, they will not have money left over to make improvements. Hence "dated" homes will be discounted in the current market place.
Overpricing and planning to wait for a change in the real estate market are poor strategies for a seller that wants to or must sell. If you owe more than a market analysis suggests is the current market value. you may need to make some hard decisions, but putting your property on the market at a price which is unsupported by market data will not solve your problem.
If you need to sell in today's market, find a professional real estate agent and trust the opinion of value that there analysis projects.
posted by shirley harry at 8:00 AM
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