When selling your home, one of the first questions is: What can I sell it for? What is my house worth now? After the hit that home prices took in our recent economic downturn, we are seeing improvements in the real estate market recently. Here in the San Ramon Valley, we seem to be experiencing a sellers market. Definition: A seller’s market exists when there are a lot of buyers competing for little inventory. In seller’s markets, it is common for a well priced and attractive home to attract multiple offers from many buyers. Sounds great, right? We have listed a few bits of advice for home sellers to help make the pricing process easier to understand.
Put your best house forward. Some homes need updating and quick fixes before it might be appealing for prospective buyers. Doing those repairs before putting your house on the market can boost chances of quickly selling. If items are broken or buyers see deferred maintenance, they wonder what else is wrong, which could drive them to look elsewhere. It’s more expensive, actually, not to fix the house beforehand.
Be realistic. A well-meaning and hard working
local real estate realtor can feel pressure from a seller who has an inflated perception of his home’s value. There is a process Realtors follow for determining a home’s value, and it’s advisable to follow that process. There are many Realtors out there that will try to “buy” your listing” by suggesting you might be able to get a higher sales price than other agents would be able to recommend. Most likely, he is quite doubtful that your home will actually sell at that price. The intention from the beginning is to eventually talk you into lowering the price, but in the meantime, he has a house to sell! It is important to deal with a reputable Realtor that follows the rules and is honest from the beginning.
Don’t price too high. This is a common error. Sellers will price high so they can come down on the price when a buyer wants to haggle. Maybe someone will actually pay that inflated asking price, right? Not necessarily. A pricing strategy like this backfires more often than not. Many potential buyers won’t even consider your listing if it is above their price range. And if your home doesn’t compare favorably to others offered for the same price, you are just helping sell other people’s homes. Sometimes when an overpriced home sits on the market, buyers wonder what’s wrong with it. As a result, sellers often wind up lowering their price below the level that would have attracted a sale had it been priced properly to begin with.
Keep things in perspective. Don’t be insulted if a potential buyer presents an offer way below your asking price. It’s nothing personal, and you don’t have to reduce your price. Some buyers use such offers as a way to start the negotiating process, and it will soon become evident if this person is really interested in buying your home. Keep in mind that when buyers and sellers get close on a sales price, often someone suggests splitting the difference. If a low-ball initial offer caused to you counter with a significant price reduction, meeting halfway later in the negotiations might not be in your best interest financially.
So even though it may be a sellers market, it doesn’t always mean you can “name your price” There are processes and resources Realtors use that help to accurately price your home for a smooth sale. We can start the discussion about getting the house ready for the market, how to price it, and what it is truly worth in today’s market.
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