Thinking of selling ? Well the first thing you need to do is understand the market ! Working with a good Realtor will help you achieve that goal.
Selecting the right price for your home when you are ready to list is critical in my opinion.
You have 3 options really. Pricing it low. Pricing it at market value. Pricing it above market value.
Everyone has an opinion of what their house should sell for. I had an opinion when I sold my home. It was actually higher than what the local Realtors were telling me it was worth. Maybe being a Realtor in Vancouver gave me some good insight. Perhaps it’s just because I’ve always been good with numbers.
Anyways, at the end of the day I had a pretty good grasp on what my home should sell for. I had done the comparative market analysis and I knew how my property compared to the homes that had already SOLD.
Then why were the Realtors I contacted comparing my property to homes that were for sale ? Good question, it had no relevance. Recent SALES are what we want to target when we are searching for that sales price.
Why, well, it’s give concrete evidence of what the Buyer is willing to spend for your property. We might have to add some value or subtract some value based on finishes, property size, garage, no garage etc. But, this provides us with a selling range.
So let’s say we are sitting down talking about how we should price your home. You tell me it’s worth $2.5 Million. I ask you how you came up with that number. You tell me that 2 other homes are listed for $2 Million in the neighbourhood and your home is much nicer 🙂
At this point I’ve already done my homework and I can tell you what 3 or 4 homes in the neighbourhood have sold for. I know how they compare to your property and that provides me with a range. We discuss the range, look at the size of your property and the features and we come up with a fair price.
Our strategy when selling your home is to drive as much traffic to it as soon as we list. Why is this important ? Think about when you go grocery shopping. If you buy older produce or items that have been on the shelf awhile, the retailer has usually dropped the price. Why, because the product is old.
The same can be said for Real Estate. When that listing is entered and your house hits the market it’s hot. We have done our job, buyers looking for your type of property are lined up and ready to make the purchase.
If we haven’t priced it properly they stay away. 2-3-4 weeks go buy and we recognize this and we adjust the price. The problem is the product is old and buyers are now looking for a discount.
Let me give you another example. A condo across the street from me came on the market last fall. They priced it at $1,399 for a 2 bedroom renovated Condo. The price was too high and the market told them so. They left it for 3 months with no sale and then took it off the market just before Christmas.
12 months later it’s still on the market. They missed that window of opportunity. Will it sell, it should. But the question is how much does it have to be discounted to sell ?
I’ve sold multiple properties I’ve owned in the past. You probably have as well, Can you imagine the stress of having your property on the market for 12 months. The constant angst, and having to constantly clean up to keep it looking pristine. No thanks.
That’s the issue with pricing too high out of the gate. You scare away potential buyers and the property becomes stale. When you do end up selling, you get less than what you had hoped because let’s face it, you are exhausted and just want to move on.
Another strategy is a low price to attract as many buyers as you can. I’ve never been a fan of this approach. I’ve heard Buyers say, that property will have bidding wars to forget it. As the property owner you run the risk in a down market of actually getting a bid close to ask. You can refuse that offer, but if you are focused on selling, let’s price it right.
Now, setting the price at market value from day 1 creates excitement and activity. Let’s sell that house when it’s fresh. You will have buyers lined up, and your stress levels will be low. That’s my strategy, and we work together to make it a reality. It does require some planning and homework on our part but that’s what you are paying us for.
So now you know some tips to help you come up with the right asking price. If you want some help, you can reach me at [email protected] or 778-228-2448. Thanks for dropping by !