When selling your home, the right price and an attractive appearance are arguably the two most basic essentials. Buyers have a pool of choices and since no two homes are alike it is crucial to make a distinction between your home and the competition.
Studies have shown that the first 2 weeks on the market are the most important. During this time, your home will be exposed to the most active buyers, through internet searches and buyers’ agents. Therefore, if you are over-priced, your home could easily get overlooked and you could be forced to endure a slow stream of random buyers who enter the market after that point.
According to one report, homes that sold within the first week of being on the market, earned an average of about 2% over list price, while homes that sat on the market for four months sold for more than 11% below their original list price.
There are several things you should consider:
Request CMAs – Determining the value of your home is the best place to start. A CMA (comparative market analysis) will show you the prices of recently SOLD homes in your area, homes on the market now, and homes that did not sell. You should consider the price of the sold homes, not just the current LIST price of area homes. Realtors seldom want to list a home that is over-priced for the simple fact that the chance of selling your home would be much lower.
Think like a Buyer – The features you consider important in your home may not be the same features that buyers will consider valuable. Discuss current home trends with your Realtor. Your home’s price should be comparable to other similar homes; not be reflective of what you think its worth.
Sweeten the Deal – Some buyers have needs that go beyond the bottom line price. The ability to close quickly, seller-financing, or assistance with closing costs can be a strong attraction to buyers. The more flexible you can be in meeting these other financial needs, the more successful you will be in pricing and selling your home quickly.
Do your own Research – It is important to educate yourself and visit open houses in your area. Make an assessment of how these homes compare to yours in terms of location, size, amenities, and condition. If all sale prices were the same, would you buy your home or someone else’s?
React Quickly – Immediately after your home hits the market there should be a flurry of interest and showing activity. If not, this may indicate that your home is over-priced. If this limited interest continues for a few weeks, you should react. It’s still not too late to reduce the price, but do it quickly in order to sustain some interest!
Consider the Market – Things to think about: Are homes selling quickly? Are the interest rates attractive? Is the economy good? How is the local job market?
Keep it Clean – You only get one chance to make a first impression. Clean it up and fix it up. Make all necessary small repairs, such as fixing minor leaks, patching drywall cracks, or holes in the walls. Clean up clutter and remove personal items. Make sure your home is immaculate every time a buyer steps inside.
You have one chance to grab buyers’ attention. Make sure your home’s price stands out from all the others for the right reason!!