At other times, they do not check the highest and best value of the property and sell a prime development property for pennies on the dollar. One savvy investor bought a prime development property for $275,000 and re-sold it for more than $1 million! The original sellers made the mistake of not checking all their options.
MARKET VARIABLES
Understand how different market settings affect how you should price your home. First, you need to determine whether you are in a buyer’s or seller’s market. While you’re scouting other homes for sale in your area, pay attention to how long they’ve been on the market. Sites such as Zillow often have a little section under each home that tells how long it has been for sale in their systems, although not necessarily how long they’ve been on the market. If homes in your neighborhood are getting snatched up right and left, you stand a good chance of the same happening for you — if your home is priced right. That’s called a seller’s market, and you could get more profit from your home’s sale. On the other hand, if the “Home for Sale” signs in your area seem to be growing roots, you are probably in a buyer’s market. You might benefit by setting a slightly lower price than your competitors. You might not make as much profit as you would like, but some profit is better than none.
PRICING IN A SELLER'S MARKET
The prices of homes that have already sold don’t matter much.
72
Powered by FlippingBook