You’ve decided to sell. Now, the hard work begins. The good news is that your home will never look better than the day the ‘For Sale’ sign appears on your lawn! Timing, Competition, Pricing, Conditioning, Financing and Marketing are the factors which, combined effectively, will assist in ensuring your smooth sale. Timing, Competition, Pricing, Financing and Marketing are factors your REALTOR® will discuss, monitor and constantly reassess. Your job right now is to ensure the price and condition of your home are right when you enter the market.

PRICING RIGHT

Here are a few points to consider when deciding on how to strategically price your home. Most sellers have a price in mind. Be aware that buyers and their REALTOR® will too. As will your REALTOR®. Pricing comes down to the six factors.

  • Your property is worth what a buyer is willing to pay. Value is determined by what the buyer perceives he will realize from a product, not what a seller paid, nor , the amount of money the seller has put further into the product.
  • An accurately priced property sells faster and at a higher price.
  • If you underprice your home, you will sell quickly, likely having competing offers, but, may end up leaving money on the table.
  • If you overprice your home, it will have fewer showings, receive lower offers, take longer to sell, and actually contribute to the sales of other properties.
  • By the time an overpriced home is reduced to the market, it may be too “shop worn” for buyers to offer full price. Have you ever asked how long a home has been on the market? What conclusion do you draw?

Timing, Competition, Price, Condition, Financing and Marketing can all be discussed by a review of what we REALTORS® call, The Pricing Pyramid.

WEBIMAGES: The_Pricing_Pyramid.JPG

You’ll find out very quickly that not every buyer in the marketplace can afford to purchase your home. As you move up the pricing pyramid, the available buyers shrink, as you move down, the available buyers increase in numbers. It’s important to price accurately to capture as many available buyers as you can.

You do the math. Keeping in mind the factors you can control and know, your timing, price, and condition, calculate your expected sale price given these national real estate sale statistics with the help of your REALTOR®. Travelling up and down the pyramid, you will get a sense of how time and asking price together will affect the eventual sale price. If time is of the essence, you’ll have to price correctly at the outset. If time is not an issue, you may be listing your home in a time of year (a spring market) where you and your REALTOR® can afford to play the odds a bit………………

Percentage received versus Asking Price
0-4 Weeks                  98.1%
5-12 Weeks                96.4%
13-24 Weeks              94.4%
         24+ Weeks                  91.1%