Pricing your home correctly is the most important thing to consider when you have decided to sell. If your home shows like a model and you let everyone know about it, it will sell quickly if it is priced correctly. After all, time is money. On the other hand, if your property has a lot of deferred maintenance, like it needs a new roof and a fresh coat of paint, it can still be marketable if priced correctly. Regarding deferred maintenance, it usually pays dividends if you fix or improve the deferred issues prior to putting your home on the market. If you do fix the issues, your home will typically sell for more than the value prior to the fix plus the cost of the fix and it will sell much more quickly. I am not suggesting a remodel. That is a different subject.
Two more things that someone can do to increase their net bottom line is to install new carpet and apply a fresh coat of paint. In most cases the net payout when the property sells will more than make up for the cost of the paint and carpet. If you have hardwood floors rather than carpet, refinishing the floors will have the same pay off effect.
Ask a professional to evaluate your home. Find someone who has qualified experience and who knows the market in your area to assist you. Many people can pull up the data, but to effectively analyze and determine an effective price for your property it takes experience and working knowledge of the market. Always keep in mind that all real estate is local.
Figuring Your Homes Correct Sale Price
Most people have a good understanding of values in their neighborhood. However, it is not uncommon for people to misinterpret the local information. People will often say that because the home down the street is listed for a certain price that they should list for something equal to or greater than that house. The common argument is that “My house is better than that house.” This may be true; however, if that house hasn’t sold then it’s priced too high. If it has sold, there is one less buyer looking in your neighborhood. You should look specifically at SOLD data. Sold data reflects what consumers are paying for property in your area today. Further, data that is more than six months old is usually too old and should be used only to determine market trends.
If your home is currently listed and has been on the market for more than 60 days with no offers, you should consider a price adjustment. If your home has had 15 showings and no offers, you are probably within 5% of the correct price and should reduce quickly. If you have been on the market for 30 days and there have been no showings then you are probably more than 10% over priced and should reduce quickly.
Having Your Home on the Market for a Long Period of Time is not a Good Strategy
As a listing sits on the market it becomes stale and will ultimately net less when it finally sells. Selling it quickly will net more. That is not to mention that it is a hassle to continually keep a property in show ready condition and costly too. Once again, time is money.
Price your property to sell quickly. Ask a professional to help analyze the value. Use an appraiser if you think it will give you more peace of mind and then compare prices. Don’t believe the neighborhood rumors, price to sell. It is human nature to believe that your home is more valuable than the home down the street. Be more analytical than that.
Visually Prepare Your Home For a Quicker Sale
Once it is priced correctly, get your home ready for showings. Declutter, depersonalize, make small repairs that have been neglected, paint if necessary, install new carpet if necessary, and stage the home as if you were going to entertain the queen of England. When your home is completely ready, take great photos. Once you have great photos and all of your marketing material is ready to publish via the world wide web then you should launch the listing. This is the most effective way to market and achieve the best price for your home. Remember, you should not show your home until it is ready for prime time. The first impression is the one that will sell it, or not.
Before Your Put Your Home On The Market:
- Visually prep your home to sell
- Fixed deferred maintenance
- Fresh paint
- Replace carpet or refinish hardwood floors
- Ask a professional to evaluate your home
- Look specifically at SOLD data to estimate your homes worth
Once Your Home Is On The Market:
- Consider a price adjustment after 60 days on the market
- 15 showings and no offers = 5% over the correct selling price
- 30 days on the market and no showings = at least 10% over the correct selling price
Visit Jensen and Company online for more tips on buying and selling real estate or call us at (435) 901 – 8333.