Many factors go into, whether, how quickly, and, at what price, a specific house, will sell at. Some of these factors include: the specific location, including safety, desirability, convenience, and even the actual, specific, block and position of the house (mid – block, corner, etc); local school system; competition; safety; home features and condition; upgrades and updates; and, of, course, pricing. With that in mind, this article will attempt to briefly examine, consider, review, and discuss, 6 considerations, for pricing a house, to sell. For most people, their goals and priorities, emphasize, receiving the best, possible, price, in the shortest period of time, with a minimum of hassle.
1. Competitive Market Analysis (CMA): Many have heard about the need to pay attention to the competition, and the advantages of using, and relying on, a professionally designed, and prepared, Competitive Market Analysis (CMA). This document evaluates recent sales (generally within 6 months, but in fast – rising, or falling markets, even shorter), the range of prices in your category/ region/ locale/ price – range, and should be a guide, for the best listing price. Prospective sellers should realize, listing and selling prices, are significantly different, and either, pricing, too high, and/ or too low, might not be in a homeowner’s best interests! The key is to discuss, with a quality, real estate professional, the best, most appropriate strategy, for you, and articulating the rationale behind, setting the listing price.
2. How to use: Some agents try to buy – a – listing, by suggesting a higher price than other agents, and many homeowners, seem to believe, doing so, will garner the highest selling price! However, where one positions a property, depends on many factors, including the local market, whether it’s a buyers or sellers market, the price – range, supply and demand, national economics and consumer confidence, local nuances, etc.
3. Where to position: Select an agent, who articulates his rationale and reasoning, and focuses on positioning the specific house, at the best position, for it! This requires a willingness to focus on reality, and accept and understand, the strengths and weaknesses of a property, compared to the competition (especially, local).
4. Clients needs/ objectives: Every client has specific needs, and objectives. What is most relevant, pricing, speed of sale, terms, etc?
5. Know local market: Real estate is, often, local! One area of the market, and certain regions, might be stronger, and have more competition, than another. One is best – suited, and served, when he selects the right agent, with a true understanding on the nuances, and realities of the specific, local market.
6. Opportunity cost of money: When you seek to sell your home, it’s important to understand, and recognize, the opportunity cost of money! This means, when an owner receives an offer, and it is a little below, what he seeks, and dependent upon the market, it might make sense, to proceed, in a timely manner, because the longer you wait, the more you continue paying for maintaining the house, and, if your selling price, goes up, with time, chances are, any home, in the area, you purchase, will also increase in price.
When you choose, to sell your home, do so, in the best possible manner, to meet your needs and priorities. Using these 6 considerations, should help the process.