Pricing is always a very important factor when it comes to selling your home, it will usually be what makes or breaks the decision for many homeowners. Whether you bought your home in the height of the market for top dollar or for those who have owned it for many years the realization of what your home is worth will often come as a shock to your system. This blog explains how and why the pricing of your home is so important, and hopefully some tips to help those sellers to sell fast and for top dollar !
The Power Of Pricing
- Many homeowners believe pricing it a bit higher will leave room for negotiations but with today's technology it will often keep the home from being shown or even seen. There is no way for your Realtor to tell those who are browsing online that the homeowner has a large amount of negotiating they are willing to do, and with inventory still high buyers can/will bypass to the next home.
- Market pricing, allows the home to have the average amount of showings, and than value will than be determined by the buyers. We will always suggest paying careful attention to the feedback after ALL showings to get the buyers perception of value. In some cases it will be helpful, and in other cases buyers will simply want to go with the lowest number possible - your agent will be the one who can make that call since he/she will have the comparable homes to show an educate both you and a potential buyer.
- "Power Pricing" is something that Coldwell Banker Residential Brokerage has actually adapted a completely new system of advertising for. These listings are not just priced and set up the same as the others because they are priced to sell within 30 days for ideally above the list price. This is done simply by creating a perception of value immediately with a slight price adjustment and additional advertising - todays buyers are educated they will know a great value when they see it !
Broker Open Houses
- There are 2 reasons why Realtors will hold Broker Open Houses, the first of which is of course to show off the listing by letting the other Realtors preview the home in order to determine if they have a buyer for it. Brokers in the area will want to be up to date on all listings not just those in which they have listed.
- The 2nd reason is because after we have the home listed we want an educated perception of value from the agents in the area. The feedback of the realtor vs a buyer is priceless because their is no emotional attachment or low-balling to get a good price it is simply other professionals giving an opinion. This would be similar to you interviewing 6 or 7 realtors to get the opinion on price without the never ending interview process.
Showings & Offers
- If your not having any showings, and your listing information is accurate and descriptive than chances are your home is overpriced. Your listing should be giving buyers a virtual tour of everything your home has to offer, now if you are not giving much information in your listing that can also be the cause of your home not getting showings or inquiries. The best way to avoid this situation is to look over your listing prior to it being posted on MLS and look at it from a buyers point of view.
- If your having a lot of showings but no offers coming in than again you can attribute this many times to it being the price, BUT their are some listings that just need a particular buyer. If your home is something "out of the ordinary" that will usually be the case. Being in Babylon Village this can often times happen because their are a larger amount of small cottages and vacation homes that are on the market. These homes will often spend time on the market not because they are overpriced but because it is meant for a very particular buyer. You should always make sure that you work with a company from your area for this reason, you want a Realtor who knows your market specifically not one whose area is towns away.
- Low-Ball offers on a home that is obviously worth more than the buyers opinion are often a sellers nightmare. Although most buyers are highly informed and use a Buyer Broker, it will not stop these low ball offers from coming in. This again is why having feedback from the brokers open is so important, you will be able to be confident in not entertaining those offers because you now have multiple sources of the value of your home.
Features VS A Value
- Many sellers attribute their homes features and values to large increases in their homes price. Unfortunately the bank might not see those in the same monetary amount as you may think. There is an entire blog outlining what you can expect for the bank to allow you to use to up the price of your home HERE.
- Always keep in mind when it comes to features and values that it is really buyer dependent. The homeowner might see their pool as a feature, but buyers might not see it that way - luckily things like pools are something that the bank will allow an increase in price but what about when it is something that they might not ? There are times when a homeowner will do things to their home not because it raises the value but because it is their personal taste - the best way to tell if you are adding value or just over-investing is by scoping out your neighborhood. If you see that all of your neighbors have done updated siding rather than leaving the original shingles than it is safe to say it will be a good value to add to your home as well.
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