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 $290,000 and $300,000. Many homes are on the market. 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 $305,000. The price will not entice a buyer, but may make comparable homes more desirable. The home will most likely not sell quickly, or at that price. · The “price it according to worth" approach. This approach sees the price set right between the market value benchmarks, at $295,000. Likely, home shoppers will lump the home with like- priced homes, knowing they can buy anytime for $295,000. · The “underpricing generates interest” approach. Underpricing at $280,000 will motivate buyers and perhaps create a bidding war. But the goal of selling the home for more money is derailed. THE COMPARATIVE MARKE TIVE MARKET ANALYSIS When it comes to finding a buyer, pricing your home based off of comparable, real-priced sales is crucial to making the sale. The Comparative Market Analysis is imperative to pricing strategically. When you ask for one from a real estate professional, be sure to review the analysis, ask questions, and get explanations. If completed correctly, this comparison report not only gives you a great listing price, but also reduces the chance of your home being under-appraised. If you have a well- priced home, you should be showing within the first few days on the market. Offers should come within weeks.
PERCEIVED VALUE
58
Powered by FlippingBook