PRICING YOUR HOME RIGHT
The biggest mistake that a seller can make when they place their home for sale on the Real Estate market is that they don’t price it right. This common mistake is often made because the seller listens to a friend or relative who professes to be an expert at selling homes instead of listening to their local professional Real Estate Agent who they should be hiring.
Your local Angus Real Estate Agent has the local knowledge and experience in the Angus market and has up to date statistics regarding prices for comparable listing and previously sold real estate. The friend or relative does not have access to the same information and is usually basing their price on perceived value that may be based on his imagined value of his own home. Not a very realistic method of ensuring your getting “fair value” for your real estate investment property.
It is always interesting to hear the argument that “with your home on a lot that size in the King City area, where I live, it would sell for ,000 more than the Real Estate Agent suggests.” Real Estate sales are based on location, style, condition and price. The location cannot be changed to the King City area, unless you own a mobile. The style of home is unchangeable unless you want to add an addition or a garage. The condition is a variable that can be changed somewhat inexpensively, with some paint, cleaning solutions and a bit of elbow grease, and possibly having a Home Stager come in for a consultation.
Your Real Estate agent can tell you accurately how you home compares to other homes in the area and what is strong and weak points are. The price of your home is the easiest option to change. The Real Estate Agent that you hire will assist you with making an informed decision as to what would be a fair market value for your home, in consideration of the current real estate market conditions. Make sure that you ask to see all of the sales that have taken place in the previous year, in the immediate neighbourhood that your home is located in. The price you place on the home should be within 3% of the expected sale price. If it is priced higher than this there will be few showings and probably no offers. If your home is on the MLS real estate listing system, it will get a lot of internet viewings by potential home buyers as well as Real Extate Agents that are dealing with these potential home buyers. If your real estate propert has more than 10 showings and no offers, your home is probably priced too high for the location, style and condition of the home. Now is the time to talk to your real estate agent about a possible price reduction. A price reduction should be in increments of ,000. If your home was originally priced at 9,900 a reduction to 3,900 is not going to create interest. Make your reduction stand out and make it 9,900, this will generate some immediate interest from bargain hunters. You may have missed the correct selling price when you first priced the home.
If your real estate property is on the market for 30 days and there are no showings, it is probably not the sales person’s fault, but is a good indication that the home is overpriced! Review your price with your local Angus Real Estate Agent and look at getting it down quickly to a more acceptable price which is inline with the value for the area. No home showings do not indicate that people don’t like your home, they most likely don’t like the asking price. If there are homes selling in your area, you need to know at what price, and what their price is based on so you can compete with them. Again you need to consult with your local Angus Real Estate Agent, he is worth his weight in gold when it comes to understanding the local market.
Getting the price right on your real estate at the very beginning the best bet for a smooth sale of your home. If the home goes on the market and you get several showings right away, and possibly an offer almost immediately, your sales representative has done a good job of pricing your home and marketing it to potential buyers that are looking for this area, style, condition and especially price. Do not think that the home is underpriced, as there are usually some buyers that are waiting for well priced homes to become available. These buyers are well educated in value for the area that they want, and they will not look at overpriced listings. There are many instances where a home is priced slightly under the market value for the area, and the interest that is generated by the price brings in several potential buyers and a bidding war is started. This is good for a seller as they may end up with a slightly elevated sale price if there are 2 or more buyers competing for the purchase.
In conclusion, don’t miss the price. A slightly overpriced home will be a lot harder to sell and most buyers are very educated as to market value for the area that the home is in. Price it right and you will be ready to move a lot quicker than those who don’t get the right price. Your buying power will be increased with the next home you are looking for, as you will not need to be conditional upon selling the one you just sold!
Beware of your real estate property becoming “stale”, after a while local real estate agents and active buyers stop looking at a house that has been on the market too long! People start thinking that the house has problems that is why it is not selling. Let your local professional Real Estate Agent put your real estate property for sale at the right price and save yourself needless worry and possible loss of value.
Bill Forsyth, Sales Representative/Owner
HomeLife Emerald Realty Ltd.
138 Mill St., Angus ON L0M 1B2
Office (705) 424-0770
Toll Free (800) 560-8756
Darren has been actively Listing and Selling Residential Real Estate in Barrie, Innisfil, Essa and Oro/Medonte for over 6 years. His passion for Real Estate and his ability to work with people have allowed him to successfully close transactions effeciently and as smoothly as possible, with integrity and honesty always being the forefront of every deal . Being a full-time REALTOR gives him the ability to be there through all stages of the process from start to successful finish! Bringing new methods of advertising and using today’s latest technology to complete full market analysis for pricing and professional photographs, your home will be marketed with maximize exposure and priced to maximize your investment, while keeping competitive in today’s slowing market!
Darren Johnson Sales Representative
Sutton Group Incentive Realty Inc., Brokerage
tel.: OFFICE: 705-739-1300