What is Your Home Worth?

Date: Wednesday June 18, 2008
Posted in: Sellers, price, real estate, listings, housing market, pricing

The seller sets the price of the home but ultimately the buyer determines the value. My job is to supply you, the seller, with facts about what has sold recently and what is for sale now. This information will help you make a decision on pricing your home. There are five essential ingredients that comprise the formula for a successful sale of your home:

Marketing: Multiple Listing Service, internet exposure, yard signs, advertising, etc.
Location: Views, neighborhood, schools, traffic, accessibility, etc.
Condition: Maintenance and amenities
Market: Competition, economy, interest rates, mortgage availability
Price: The #1 most important factor in the sale of your home

The consequences of improper pricing are painful. Too low and you literally give away money that should have been in your pocket. Too high and your home will sit unsold for months, developing a reputation of a problem property.

Remember:

What you paid for your property does not affect it value.
The amount of money that you need to get out of the sale of your property does not affect its value.
What you think it should be worth has no affect on value.
What your neighbor says your property is worth does not affect it value.
An appraisal does not always indicate what your property is worth on the open market.

What does determine the value of your property? The value of your property is determined by what a qualified, informed, ready, willing and able buyer will pay for it.

Benefits of Proper Pricing

Faster sale: The proper price gets a faster sale, which means you save on mortgage payments, real estate taxes, insurance and other carrying costs.
Less inconvenience: As you may know, it takes time and energy to prepare your home for showings, keep the property clean, make arrangements for children and pets, and generally alter your lifestyle. Proper pricing shortens market time.
Increased salesperson response: When Realtors are excited about a property and its price, they make special efforts to contact all their potential buyers and show the property whenever possible.
Exposure to more prospects: Pricing at market value will open your home up to more people who can afford it.
Better response from advertising: Buyer inquiry calls are more readily converted into showing appointments when the price is not a deterrent.
Higher offers: When a property is priced right, buyers are much less likely to make a low offer, for fear of losing out on a great value.
More money to sellers: When a property is priced right, the excitement of the market produces a higher sales price in less time. You net more due to the higher sales price and lower carrying costs.