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Pricing Your Home to Sell
Everyone would like to get top dollar when they are selling their home. The truth is if you overprice your home in the beginning, then you are only hurting yourself in the long run. As market conditions change, the market value of your home will change as well. In a declining market you are chasing the market downhill and losing potential money along the way with an extremely high frustration with the home selling process.
Work with a us to understand what the homes are selling for in your area. The home that sold 6 months ago is no longer a good comparable because of the declining market and newer appraisal guidelines. Normally homes sold in the last 3 months matching your square footage, number of bedrooms and bathrooms will be considered a comparable home. As your real estate agents, we have access to this type of information to help you price you home correctly from the beginning. There are always three factors to getting a home sold — location, price, and condition and only two of these are under your control: price and condition. Pricing your home is the most important because the price will correct a bad condition, but good condition will never correct a bad price.
Moving up to a larger home in a declining market is a way for a savvy homeowner to move into the home of their dreams. Let's assume you are selling a $200,000 home in a declining market of 5%. This would bring your selling price down to $190,000 with a $10,000 loss. If you are looking to move up to a $400,000 home that has taken a 5% decline, you would be able to purchase that home for $20,000 less at $380,000 resulting in a $10,000 net gain. Plus, a more luxurious home typically appreciates more when the real estate market recovers. Please feel free to contact us for additional information.