Location has long been touted by housing experts as the most important factor when it comes to selling your home. While location may have the most effect on value, PRICE is the most important factor controlling the sale of real estate. Anything will sell any time. How long it will take depends upon the price.
Think about it this way – A classic car collector is looking to add a 1963 Corvette to his collection. He finds one for sale, in mint condition, the only problem is the price. The owner is asking $150,000. Having extensively researched 1963 Corvettes, the collector knows that particular model is only worth about $95,000. If the price was $100,000 or even $110,000, the collector would have driven over there with his checkbook and driven home a 1963 Corvette. What is stopping him from making an offer?
When someone sees a price that is considerably higher than the actual value, it makes them think either…
- The seller is difficult to deal with
- The seller is out of touch with reality
- The seller is fishing for a fool that will substantially overpay
Most sellers think that it is necessary to “leave a little wiggle room” in the price. They do this in order to avoid “low-ball” prices from buyers. This notion is wrong.
Buyers will pay fair market value for a house. If sellers price their property correctly, buyers will often know immediately because, just like in the Corvette example, they have spent a lot of time searching for and researching homes. Buyers can tell when a property is overpriced. Most buyers will not even go look at an overpriced property for reasons 1-3 stated above.
This is where a professional REALTOR comes into the picture. The right way to price your property is to have a REALTOR prepare a Comparative Market Analysis on your property. This involves finding recent sales of similar properties and adjusting for any differences in order to determine the current market value of your home. Once the current market value has been determined, you should have your REALTOR set the asking price no more than 3-5% higher.
If you do this, your property will sell quickly, for a price equal to or exactly what your home is worth, or higher! Buyers as a general rule DO NOT make “low-ball” offers. While there are some rare occasions when that happens, the vast majority of offers are 5% or less below asking price.
If you are interested in receiving a Comparative Market Analysis on your property free of charge, give DLP Realty a call today! Our friendly and knowledgeable agents are more than happy to assist you in determining the market value of your home.