A recent survey of home buyers and sellers has revealed that 76% of homeowners think their home is worth more than the price recommended by their real estate agent. Realtors and home buyers tend to have a better grasp of current market values in the area where they’re looking to buy than do the sellers who live there. Buyers research lots of new listings, make offers, watch the market for what sells, how quick it sells and for how much it sells.
Your home is only worth what a ready, willing and able buyer will pay for it. This price may not reflect your opinion or what you hope it’s worth. You have to rely on logic and current and relevant data rather than emotion when choosing a list price. Put yourself in the shoes of a buyer: sincerely ask yourself which home is the best home for the money? If your home is the BEST HOME FOR THE MONEY then it will sell. If your home is not the best home for the money then it will not sell. The most important part of listing your home is accurate pricing.
The best time to sell your home is when it is fresh on the market. Buyers wait daily for new listings. This is the time when the home is most marketable and gets the most showings. The first couple of weeks are crucial. After being on the market for a month or so it is no longer the hot new listing. Buyers may perceive the home as “shop worn” or “stale” and start to ask themselves, “What’s wrong with it?” When that happens buyers are less likely to offer the asking price.
To help you select a list price, your real estate agent researches the comparable homes that have sold recently. These recent sales are the best indication of the home’s current market value. Realtors will analyze the comparable properties and add more value to your home for items your home has, and subtract value for features it lacks. Trust their knowledge, experience and data. Assuming you are working with a competent Realtor, it will benefit you to take their advice when it comes to pricing your home.
You have to detach yourself from your home. Something about your home may have sentimental value to you, but may not to a potential buyer. Try not to place too much weight on rumors going around the neighborhood about the prices other homes have sold for. Prices tend to get embellished. Choose your price based on the facts. Focus on the SOLD prices and not the asking prices.
If you are thinking of selling your home or just wondering what your home is worth call me for a free CMA (Comparative Market Analysis) on your home.