Your Home Won't Sell Unless the Price is Right
What's in a number? Everything, when it comes to successfully marketing your
home. Nothing could be more critical than asking the right price. Set the
price too high, and you'll get a bad rap from buyers and experienced
buyer-brokers who can see through your inflated listing. Be sure to listen
carefully to your agent's advice, and consider getting an independent
appraisal for the most objective assessment of your home's market value. And
if you're still not sure, consider the novel approach of setting a price
range instead of a specific number.
How do you know if your asking price is too high? The telltale signs are
hard to ignore. If buyers or agents aren't showing up at your home or if
the offers are way below your listing price, then something is awry. Or if
your home has been multiple-listed for several weeks to no effect, then it's
probably time to reconsider your asking price. Certainly, your broker should
know market conditions in your area and be able to explain why there's no
activity. If not, pick a motivated broker who can get you back on track.
Still, chances are good that he or she will say your price is too high.
Better yet, do some research before you list your home. Check the
"comparables," i.e., similar homes that have sold recently in your
neighborhood. That way you can make an informed judgement of what your home
is worth, based on the real estate market in your area. In addition,
consider getting an independent appraisal of your home's market value from a
professional real estate appraiser. FSBOs (for sale by owner) especially
need to seek a professional appraiser's opinion, because they don't have a
broker to provide this information. Knowing what your home is truly worth
lets you negotiate with confidence and know exactly what your bottom line
price is.
Every seller must arrive at a price and negotiating strategy with their
broker that they're comfortable with. Most decide on a specific number for
listing their home. But some brokers are using a range of numbers instead,
say 134,900 to 149,900, for example. Prudential real estate calls this
"Value Range Marketing." The idea, according to brokers who use the
strategy, is by setting a broad range the listing attracts more buyers who
might otherwise be turned off by a single number at the upper end. In
setting the range, Prudential agents say they try to factor in the price the
seller hopes to get, the market value of the home, plus the price that buyers
are probably willing to pay.
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