Determining the Right Price When Selling Your Home by Yourself

Written by Posted On Friday, 21 September 2018 09:06

Importance of First Listing Price

Determining the Right Price When Selling Your Home by Yourself

When it comes to deciding the selling price of your home, you can never underestimate the importance of the first listing price you project to the buyers. Determining the Right Price When Selling Your Home by Yourself

Generally, as the homeowner, you will always have the general idea of the current worth of your property. However, what we are speaking about here is the listing price you are supposed to quote, which will be one of the driving factors to promote the sale of your home. Determining the Right Price When Selling Your Home by Yourself

In this regard, the first listing price must be as attractive as possible to set a good pace for the selling process. While the industry experts advise of only a few successful strategies regarding this, they are worth looking at.

Fast and low is a winning strategy that can guide you in deciding the first listing price. This means if you are looking to sell off your home as fast as possible, list the property 5% to 15% below the market value after studying the current market trend.

This will attract the buyers easily, as they will see a good deal in it. This strategy is the best when you do the sale yourself, as while moving through an agent, you are going to pay a huge commission that needs to be considered.

For instance, the statistics show that on average, buyers across the country are paying 2.5 percent more than the asking price. But this calculation does not take into account the concession or incentive you are prepared to give to the buyer.

Also, if you have brought down the listing price 15% below the market prices, then the implication is that you are only reducing the price 6% to 7% lesser than what you would end up getting while working through an agent.

Therefore, cutting down the holding costs and netting more will work to your advantage. Though the scenario might differ between regions, this can guide you on how to decide the listing price. Making the prudent use of the Internet search pricing secret is yet another way to decide on the first listing price. Determining the Right Price When Selling Your Home by Yourself

In order to trick the buyers, most property owners fix the price using more nines to induce a feeling that the property is cheaper. For instance, some might quote the price as $199,900 rather than $200,000 with the intention of letting it sound more attractive.

However, know that the existing Internet searches are not tuned to reach the buyers effectively if you use this nines strategy. To be clear, the majority of real estate sites employ search parameters that are organized as categorical groups. $175,000 to $200,000, then $200,000 to $250,000, and so on. Determining the Right Price When Selling Your Home by Yourself

Given this trend, if you are quoting the listing price as $199,000, it is likely that your property will reach buyers searching for properties within the $175,000 to $200,000. However, if you quote it as $200,000, then it can figure in searches under both $175,000 to $200,000 and $200,000 to $250,000 categories. Determining the Right Price When Selling Your Home by Yourself

Catherine Gomez

How the Wrong Price Can Hurt Your Sale

Understanding the market and the customer behavior requires a lot of insight into what actually happens in the real estate domain today. If your first listing price has followed an imprudent decision, it could work against you and act contrary to your beliefs.

Therefore, rather than going by what you feel as the working strategy, you need to do research on how things happen in the market. Let us talk about this with an example. Determining the Right Price When Selling Your Home by Yourself

Marking down is one popular strategy that most sellers resort to. We can understand this as follows: it is natural that every owner will want as many dollars as possible over the amount of their property sale.

Therefore, most sellers prefer to quote the first listing price considerably higher than the existing market trend so that, by chance, they can end up inviting unwieldy buyers. Subsequently, during the process of negotiation or delay in selling, the seller will keep lowering the price. Determining the Right Price When Selling Your Home by Yourself

Though there is a likelihood of selling the property for more value if the buyer has not acted smartly, this strategy is considered somewhat unsuccessful. For instance, if the properties are not sold within 30 days of listing, then the buyers might be apprehensive, thinking that there could be something wrong with the property.

Also, some buyers tend to think that if you are prepared to lower the price, they can continue bargaining as much as possible to land the best deal. Determining the Right Price When Selling Your Home by Yourself

This strategy might end up hurting you, therefore, it is very important that you fix up the first listing price in line with the market trends to sell your property faster. Determining the Right Price When Selling Your Home by Yourself

Getting a Comparative Market Analysis CMA (Get for Free from the Agent)

Most home sellers are familiar with the idea of comparative market analysis. This is a popular tool used to ascertain the real value of the property intended for sale.

Comparative market analysis, or CMA, is the process of analyzing the sale deals of homes comparable to that of yours in the region.

This analysis is a detailed one, taking in every aspect of your home in detail. In the first place, you need to understand that this is not an appraisal. The value assigned in this process is quite subjective, based on the belief of the realtor as to how much the home can be sold for. Determining the Right Price When Selling Your Home by Yourself

This document will never have a financial or legal validity, though it is used predominantly by agents to win the listings. In fact, several agents are prepared to give this to you for free.

The principal objective of CMA is to give you a fair idea of fixing up the listing price for your property in line with the market trends so that your deal can be successful. Depending on your choice, CMA can be conducted by considering a given number of sales, or might take into account properties sold within a few miles. Determining the Right Price When Selling Your Home by Yourself

The CMA focuses on aspects like the physical extent of the property, the number of rooms, bedrooms, bathrooms and other components. There are, however, no fixed rules on how to conduct a CMA.

The other features that can be considered include amenities like a swimming pool and fireplace, the location of the property, proximity to landmarks and major roadways, recent improvements made, and so forth.

In a CMA, several useful insights can be gained from recently sold homes, active listings, pending listings, and expired listings. It is not an easy task for the homeowners to secure access to MLS data. Determining the Right Price When Selling Your Home by Yourself

Therefore, it is rather improbable to gather data on the recently sold and active listings. However, the Internet and FHFA can facilitate learning more about home sales that happened in your locality. Some of the most reliable sources to learn about home pricing trends include the Federal Housing Finance Agency, the FNC Residential Price Index, and Real Estate Websites.

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