Price it Right!
In an increasingly competitive Real Estate Market it can not be overemphasized how important pricing is. Price it right and you will sell yourhome, price it even 5% above market value and you are reducing your market of potential buyers by half. When a home is priced just 15% above market value it only has a 20% chance of selling. In other words, if the market value of your home is 750,000 and you decide to "test the waters" at 850,000, you are doing significant damage to the possibility of selling your home.
Overpricing will attract fewer potential buyers and the home will sit on the market for longer. Once a home sits on the market for too long it becomes stigmatized and agents stop showing it to their buyers. Another problem with overpricing will come from pressures from lenders. If you do find a buyer who is willing to meet your price, chances are they still need to obtain financing. Lenders look at the fair market value to determine the amount they will finance and often require the buyer to make up the difference in cash.
Some of the factors that influence the price of your home include:
- Physical Qualities: location, floor plan and style
- Market Conditions: interest rates and availability of financing, buyer and seasonal demand, state of the economy and recent property sales
- Competition: number, pricing, condition and location of comparable properties on the market
Remember that the price you paid for your home or the proceeds you "want" from the sale have no effect on the value of your home! For more information on pricing and current market trends see Preparing to Sell Your Home.
If you have any questions about selling real estate in the greater Santa Cruz area, contact Lauren Spencer, Coldwell Banker Realtor at 1-831-662-6522 or Toll Free: 1-800-226-4717.