Setting The Value--Pricing A House To Sell

Along with location and condition, the pricing of a house is a major component of the reasons why a house will--or will not--sell quickly. Although the pricing should not be dealt with lightly, some sellers have a tendency to put too much emphasis on the price and not enough on the condition, ending up with a house that is overpriced for its current condition and the overall market. Even if you find an unaware buyer that appears willing to pay the high price, when the buyer applies for a mortgage, the chances are good that the lender's appraisal will force the price back down to market value.

It's important to get it right the first time

Care and time should be taken when establishing the original listing price for several reasons:

1) If the house is overpriced, it won't sell. If it doesn't sell and sits on the market the listing quickly becomes stale.

2) If you overprice the house with the intention of reducing the price later just to "see what the market will bear", when the price of the house is lowered, it signals to buyers that it was (and still may be) overpriced.

3) If the house is under priced, it most likely will sell quickly--to the detriment of your net proceeds.

Some factors that affect the price

When selling your home, some factors can affect the price that you set.

1) Location: You can't get away from this one. If your house is located in a desirable area that is in demand, you will be able to get a higher price than you can for the same house in a less desirable area.

2) Condition: A house that has been better maintained and shows better will always sell for more than one that has had deferred (neglected) maintenance and needs work.

3) Desirable amenities: If a house has amenities that are currently popular in the marketplace, it will bring a higher price.

In addition to setting the right price for your home, remember the 5 “Cs” when thinking about putting your house on the market:

Condition:

In today’s market, most buyers are looking for a home in move-in condition with little or no fix-up or repairs needed. Providing it is priced accurately, a home that is in “show room” condition will attract more buyers and encourage near full price offers. Buyers willing to purchase a home needing repairs will usually subtract the cost of those repairs from their offer price.  The bottom line is, if your home needs some repairs and you want to get top dollar, it is best to take care of those repairs before putting your home on the market. It will most likely save you time and money in the long run.

Cleanliness:

Before opening the door to one prospect, make sure you spend the time you need to clean your entire house from top to bottom. The most important rooms to keep clean are the kitchen, master bedroom and bath. A little elbow grease can go a long way to making a good impression. It may be difficult, but it is essential to keep your home clean and ready for any showings that might be scheduled.

Color:

A bright décor is more appealing to buyers. A drab or dark room or hallway takes away from the overall focus of a home. A fresh coat of neutral color paint or carpet could be one of the best investments you could make prior to putting your home on the market.

Clutter:

Preparing to sell your home is a perfect opportunity to get rid of any unused or unwanted junk. Just as keeping a home clean is important, the most critical areas in your home to keep clutter free are the kitchen, closets, master bedroom and garage. A buyer wants to be able to picture their personal items in your home. This is hard to do when a house is filled with clutter. In the kitchen, clean off counters and un-clutter cupboards. Closets should be organized and not necessarily filled to the brim. In the master bedroom, move or remove furniture to create a more spacious look. A garage needs to store only automobiles and basic lawn or workshop tools.

Curb Appeal:

The old adage “you only get one chance to make a good first impression” is equally true when selling your home. Drive up to your home and look at it from the perspective of a prospective buyer. Does it need grooming, flowers, better lighting, a wreath on the door? The curb appeal will increase your chances of someone making the decision to view the rest of your home, or not.

A professional Realtor is trained to guide the homeowner through the entire process of selling a home by providing accurate and up-to-date information on pricing the property, objectively evaluating what, if any, of the 5 “Cs” might be needed, bringing qualified buyers and assisting the seller all the way through closing.