Pricing It Right
With a growing inventory of homes for sale in today's Buyer's Market, it is imperative to position your home to sell in the shorest time possible for the best price. Begin by looking at your home though the eyes of a potential buyer.
There are five basic factors that ultimately determine whether a home is going to sell, or simply be one of many homes on the market with very few showings and no offers:
Buyers have many choices in today’s market. In order for a seller to maximize the selling price of a home, the home must be “Parade Ready” and priced right! PRICE is determined by: CONDITION, LOCATION, SIZE, and FEATURES. A home that can rate a score of 10 in CONDITION, LOCATION, SIZE, and FEATURES can be more aggressively priced compared to a home that is deficient in any of the categories.
A seller can only control CONDITION, FEATURES and PRICE. LOCATION and SIZE are not controllable.
Currently there are 28,271 homes on the market, and over the past three months only 4,410 homes sold.
To be among the 4,410 homes that sell, your home must be Valued as a 10 in: CONDITION, LOCATION, SIZE, FEATURES, and that will allow a 10 in PRICE. If your home is not rated a 10 in all these categories, then PRICE will need to be adjusted for these deficiencies.
The flow of sales activity in any real estate market is depicted in the following graphic:
There are three categories for the 28,000 homes currently on the market:
1.FLOW. Homes that are considered to be the best Value and Price flow into the market and then leave the market SOLD in less than 45 days.
2.SHOW. Homes that are deficient in Value or Price might be shown, but they are not getting any offers. Adjustments must be made in Price or Value (Condition, Features) to get the listing sold.
3.STAGNANT MASS. Homes that are greatly deficient in both Value and Price do not even attract showings. There is virtually no activity, and these listings never sell.
Ask yourself where you want to position your house in this competitive Buyer’s market. Remember, any deficiency in the five categories of: CONDITION, LOCATION, SIZE, FEATURES or PRICE will remove your listing from the “Flow” of the market and place it in the “Show but no offer” category or worst yet, in the “Stagnant Mass” with no showings.
If positioned properly, your home will be in the “Flow” of the market, and it will attract a buyer.
What happens when you over-price?