Pricing a home is one of the most critical steps the Seller will take during the preparation process before the sign goes up in the yard. Determining the proper price for the home is all about what the market is prepared to pay for the home vs. how much the Seller would like to make from the sale. The Buyer would like to purchase it for as little as possible and the Seller would like to sell it for as much as possible.
Sometimes a Seller has the perception that the price of a home is based on what the Seller paid for it, the cost of all of the improvements and a reasonable profit the Seller would like to walk away with to purchase their next home. Using this type of pricing model will not yield the Seller favorable results.
Fair Market Value
When pricing the home, reviewing the statistics of comparable homes on the market including those that have recently sold and closed within the past 6 - 12 months is vital. These homes should be relatively similar to the Seller's in size, age, condition and location. Finding sufficient comparables can sometimes be difficult, as new neighborhoods or neighborhoods with custom homes can be challenging. When this occurs we use a modified evaluation method to find the fair market value of the home.
Market Conditions
The ideal comparables are properties that are identical to the Seller's that have sold and closed recently. If the market is overloaded with homes similar to yours, the comparable homes that have sold will have a stronger bearing on a reasonable price you should expect for your home.
In a "Seller's Market", when there is more demand for homes than supply...this is a good thing for Sellers. When this market condition occurs, Sellers will be successful and receiving a higher price for their home.
Using Common Sense
It is a mistake to list with a Realtor who gave you the highest price. Expect some Realtors will suggest a price range to you, but don?t be mislead by that. Be aware that some Realtors will first suggest a very lofty price. Then, after the listing has sat and not sold (because the market rejected it), the Realtor will come back with a proposal to lower the price. You must determine the price of a home based on solid facts, the comparables of both sold and active listings, the condition of the home, the location, the market conditions and expected sales concessions.
Buyers are waiting to see your home
The first three weeks of your listing is the most CRITICAL. This is the period of time your home will often get the most traffic and your BEST opportunity to sell quickly since your home will be fresh on the market. Your home needs to be in A-1 condition and ready for sale. It is a beauty contest with homes today...the best homes will sell quickly. If your home is priced too high (regardless of what condition it is in) it will just sit or it will get shown and result in no offers.
Our team will help ensure your home gets the traffic needed into your home and materialize offers for you as quickly as possible!
Diane Kelly -- Keller Williams Realty -
North Atlanta Direct: 678.907.9155 --
5780 Windward Parkway - Suite 100 - Alpharetta, GA 30005-2021
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