Determining Property Value
Factors that influence overpricing:
- Attempting to recover money invested in renovations and improvements
- Desire to use profits to purchase a higher-priced home elsewhere
- Original cost of the house was too high
- Lack of housing market information
- Building bargaining room into the price
- Adding on for perceived emotional value
The benefits of pricing right:
- Your property sells faster, because it is exposed to more qualified buyers.
- Your home doesn’t become stale and lose its marketability.
- The closer your asking price to market value, the higher the offers you’ll receive.
- A well-priced property can generate competing offers.
- Real estate agents will be enthusiastic about presenting your property to buyers.
Together, you and your agent will establish a competitive list price for your home based on the following:
- Community amenities
- Financing options
- Housing market conditions (Is it a buyer’s or a seller’s market?)
Once you’ve achieved a realistic sale price (along with a wise marketing strategy prepared by your agent), you can expect to sell your home for the best possible price in the least amount of time.