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Pricing a Home Right
3/22/200710:49:07 AM Link | | Add comment
Pricing a Home Right
This is one of the toughest decisions to make when you first put your home on the market. Of course you want … and the key word is “WANT” … the most for your home. Hey, so do I. But what are you going to GET ???
There are TWO ways to play the game.
1) Price it right from the beginning
2) Play the “Hey, they can always make me an offer” Game
Simply put, I recommend option #2 ONLY in a sellers market. What’s a sellers market? When homes are selling like hot cakes, no matter what the condition of the home.
Option #1 – Without a doubt this is the way to go. Why? Here’s why:
1) Every home sells within 97% - 100% of the CORRECT LIST PRICE. The correct list price is the price which reflects fair value or better and generates lots of traffic from the real estate community. Realtors know a well priced home.
If you don't believe me about the percentages, call or email me with your challenge. For example, we can simply pull up your neighborhood and it will show that the sold price of the homes will be at 97% - 100% of the LAST list price... this means that there will have been price reductions from the original list price. So why not price it right in the first place?
2) The longer the home stays on the market, the more it's going to cost you. Consider your timing for the next move, potential interset rate increases, seasonality, etc.
3) The Slow Death - Gradually reducing your list price. If you wait 3 months and then do a 3% price reduction when it's 10% overpriced, it won't help. You will continue to do small price reductions until you finally hit the market and by that time the home is tired and the offer you get is probably lower than one you would have gotten if it was priced correctly out of the gate.
Comments? Feel free to send them our way!
Offers - the Good, the Bad, and the Ugly
3/12/20076:48:43 AM Link | | Add comment
When is an offer a GOOD offer? Of course, the first thing that comes to mind is PRICE. Yes, price is important but you can get your asking price and still have a bad offer.
Your asking $230,000 for your home. Your receive TWO offers:
Offer #1 - You receive a full price offer … Woo hooooo !!! What a deal … where do I sign! They want to do 100% financing, interest only payments. They ask for a 45 day escrow so they can do their inspections, get loan approval, title commitment, survey, etc. They live in town, have their home under contract due to close in 35 days.
Offer #2 - $220,000 with 20% down, close in 30 days. They are firm with this offer … take it or leave it. No contingencies, they’ve sold their home in