THE PRICE IS RIGHT
A buyer of real estate is no different from a buyer of a painting or a bag of oranges. Both sellers’ and buyers’ perception of value will always have a prominent role during the sale. Perceived value and market value are not the same. You need to know how to price your home strategically and correctly from the get-go to obtain the best price. A Virginia realty agency reported that homes within their first week on the market sold for an average of 2.08% above list price. Homes that grew stale months later sold for an average of 11.53% below the original list price. As a seller, keep in the forefront of your mind two things as you determine initial listing price. First, sentimentality has no dollar value. Although you have emotional connections to your home, the buyer does not. Most buyers being shown many properties do not expect yours to be “the one.” You will have to work to get them to that decision. Avoid letting sentiment play a part in pricing the property. Set all emotions aside during the selling process. Buyers look for cues to figure out your motivation to sell. Next, there is also no direct dollar-for-dollar correlation between upgrade investment and market price. A $25,000 kitchen renovation will not bring the market price of a $275,000 to $300,000; don’t assume you can add that amount to your asking price and get trapped by making your home the nicest, but also priciest, home for your area.
SALE PRICE VS. MARKET VALUE
If you have a ready-to-buy, bank-qualified buyer who is willing to
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