you can set a higher price, but buyers already expect the roof to be in excellent shape. Proximities to schools, bus routes, and medical facilities can create value that certain buyers are willing to pay for. If a home is a walkable distance to stores and restaurants, that can be a major factor with setting the price. Buyers look for the right deal, but what they are willing to pay, or what the bank is willing to finance, has limits. Strategic pricing is your greatest tool when selling your home.
PRICING EXAMPLE
A homeowner decides to place his home on the market and must decide on an asking price. By rough estimate, the home’s market value falls between $390,000 and $400,000. Are there many homes are on the market or only a few homes available?
These are some pricing considerations and approaches to finding that “right price”:
• The “leave room for negotiation” approach. In this approach, the market value is “stretched,” say to $425,000. The price will not entice a buyer, but may make comparable lower priced homes more desirable. The home will most likely not sell quickly, or at that price. This approach is often "a fail" so keep in mind, an over- priced home generally results in a longer period on the market, eventual price reductions, then a lower-than- market-value sale price. • The “price it according to worth” approach. This approach sees the price set right between the market value benchmarks, at $395,000. Likely, home shoppers will lump the home with like-priced homes, knowing they can buy anytime for $395,000.
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