My latest market letter sent out yesterday is an article I wrote about pricing strategies for listing a home to get top dollar and to sell quickly – the two things we all want.
Here’s the Full Post…
Getting Top Dollar for Your Home: Pricing Strategy – Part 1
The most critical step to selling your home for top dollar and quickly will start with pricing your home correctly. The window for top dollar is no more than two to four weeks. The most buyers you will have looking at your property will be during that short timeline. If you have not received an offer, a price adjustment is imperative. Sellers may decide on the asking price, but the buyers will determine the sales price.
Market Comps
The most important component of comps are past sales, secondly expired listings and lastly, and least important, are current active listings. Sold homes that are comparable in location, size and amenities will be your strongest indication of present market value. This is a loud and clear statement of what buyers in your market place are willing to pay for a home similar to yours. On the flip side expired listings, those that have not sold, indicate failed attempts at selling. It is crucial that you look at both groups and compare the differences. Active listings are your competition, but can also indicate what your home won’t sell for.
Neighborhood Dividing Lines
When looking at comparable sales you will need to pay close attention to neighborhood dividing lines and school zone districts. A home not in a sought-after historic area or a stellar school district, even though it’s only one block away, will not have the same value. Close in these cases is not close enough.
Days on Market
To price correctly it’s imperative to consider days on market in your neighborhood or complex. Time on the market usually indicates how well a property was priced. Fewer days on market means the property was priced well. If a listing has longer days on market you will want to compare the original list price verses final sales price. How long did it take to get that price and how many times did they lower the price? Some areas and types of properties will normally have longer market times. You will want to be realistic about typical days on market for your type of property or location and plan accordingly.
Timing
Consider the season you are selling in. If your home is a family home, you will most likely want to list in early spring. Families will want to close and be settled before the next school session starts. If you are selling a condo on the beach, your target market will be snowbirds. You will want to be on the market no later than December. Sought-after areas like downtown are season proof and will sell at anytime during the year.
© Stephanie Passman
In Part 2 of this article, we’ll look more closely at the numbers and other aspects of the price itself.
