Links:
|
Seller Information
Determine the Best Asking Price
|
      
|
Determining the BEST Asking Price
A realistic asking price will help to sell your home quickly and
for top dollar. By properly pricing your home you ensure that the
gap between the asking and selling price is small and that there
will be a greater likelihood of competing offers. Your home will
also maintain its 'marketability' for a longer period of time before
people start to say... "That home has been for sale forever. What's
wrong with it?"
A house that is priced 10% over its actual market value is many
times less likely to sell in the initial 30 days of marketing than
one priced within 5% of its true value. Not only will an over-priced
home take longer to sell, it is also likely to sell for less than
it's actual value. This is due to the "discount" often associated
with properties that have been on the market for a longer than average
time.
It should be pointed out that recommended listing prices are
based on historical sales and current market conditions. It is always
difficult to walk the fine line between getting the most for a property
while at the same time ensuring your asking price is competitive
enough to attract serious offers.
How you feel about testing the market will determine how much
higher than the current selling prices of similar properties you'll
wish to ask for your home. You can always start at a higher price
than the market is currently bearing and then, if necessary, reduce
your price at a future date. The drawback to this is that it could
take longer than normal to sell and you could end up helping to
sell other similar homes as they may look comparably less expensive
than yours.
This is where the experience and knowledge of a good real estate
agent is invaluable. Real estate agents spend a lot of time and
energy making sure they know their local market inside and out.
They keep their finger on the pulse of the market and have the resources,
connections and ability to keep you up-to-date with its constant
changes. They know all of the properties currently for sale in your
area and are literally your best resource for determining and getting
the highest price possible.
|
| |
|
The Main Factors That
Affect Market Value Are... |
Location:
 |
availability of community amenities, such
as public transportation, parks, stores, churches and schools
|
|
|
quality and consistency of neighborhood planning
|
|
|
future development plans and local zoning
|
Property:
|
|
style, layout, size, age and quality of construction
of the building |
|
|
size, shape, privacy and landscaping of the
yard
|
Condition of the Home:
|
|
first appearances
|
|
|
floor layout
|
|
|
quality and appearance of fixtures
|
|
|
general overall condition of main systems
(such as roof, furnace, electrical system, central air, etc.)
|
Comparable Properties:
|
|
the asking and selling prices of comparable
neighboring homes
The best way of establishing an accurate range
of value for your property is to have Great Beginnings Realty
prepare a Comparable Market Analysis (CMA). This will give you
a detailed and accurate overview of the current market.
|
Market Conditions and the Economy:
|
|
number of homes currently on the market |
|
|
number of people looking to buy |
|
|
the state of the local and national economy |
|
|
current mortgage rates
|
|
| |
|
Market Conditions
and the Value of Your Home |
|
No matter the condition or desirability
of your home, its value will be affected by current market conditions.
Here are the various conditions you may encounter and how they will
affect you:
Balanced Market:
The number of homes on the market is equal to the number of buyers
(supply equals demand). In this market, prices are stable and homes
sell within a reasonable period of time. It is a calm atmosphere
with buyers having a satisfactory number of homes from which to
choose.
Seller's Market:
The number of buyers exceeds the number of homes on the market (demand
greater than supply). In this market prices are increasing and homes
sell quickly. As a seller you will probably have more negotiating
power and obtain a higher selling price for your property. Unfortunately
you will be on the other side of the fence when purchasing your
next home.
Buyer's Market:
The supply of homes exceeds the number of buyers (supply greater
than demand). In this market prices tend to drop and the homes stay
on the market longer. Thus your home may take longer to sell and
you will have less negotiating power in terms of the selling price.
Fortunately you will be in the driver's seat when making an offer
on your next home.
In Summary:
When you understand current market conditions, you are better able
to position yourself as a Seller. It helps to know if you are in
a Seller's, Buyer's or Balanced market when setting your asking
price. In a Seller's market, there is little competition and you
may ask for and achieve a slightly higher price than you anticipated.
In a Buyer's market there is a lot more competition and Buyers have
plenty of choices and room to negotiate, forcing you to be very
competitive when setting your price. In a Balanced market you will
have a fair number of showings and sell in a reasonable amount of
time if properly priced.
|
|
Great Beginnings start