Nick & Cindy Davis would like to discuss pricing you home in today’s market. There are some myths out there about the price of home and what a “Seller’s Market” really means.
The Buyers in today’s market are seeking maximum value in a property.
Their decision is based on a few things such as Market Condition, Location, Size, Amenities and overall Condition of the house.
By knowing these and pricing your home correctly you will be maximizing your chances of selling your home quickly for the best price and most favorable terms.
So let’s get into the 5 Myths about pricing a house to sell.
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I put $25,000 worth of upgrades into my house when I purchased it and therefore I should get $25,000 more for my home today. Sorry we wish it was this way, but upgrades you purchased 3, 5, 7 years ago do not hold dollar for dollar when it comes time to sell your house. They will compliment your sales price, provided that they still are the ones everyone is looking for today.
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My next door neighbor said he sold his for $. As a REALTOR® Cindy and I will look at all comparable sales in your neighborhood and sometimes, neighbors like to over embellish just a little with what the sales price actually was.
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New homes in the community across the street are selling for $. When we do our analysis for your house. We will compare similar homes to yours. We will start off in your neighborhood and typically look at homes that are 10-15% smaller and larger than yours, we will only look at pool homes if your house has a pool. We try get as close as possible to homes similar to yours. Now if there are not any sales in your neighborhood, then we will normally go outside of your neighborhood to find other homes. But using new construction prices to let’s say a home that is 5 to 10 years old is not a good practice and could cost you more money in the long run.
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I want to start $25,000 over what you suggest as a list price. Timing is extremely important in the real estate market. A property attracts the most activity from the real estate community and potential buyers when it is first listed. It has the greatest opportunity to sell when it is new on the market. So if you are $25,000 over what homes are selling for chances are when buyers come and look at your home they are used to seeing larger homes with more upgrades for that price.
- I have plenty of time to sell. What we would ask is then why put your home on the market today, why not wait? Every month your home is on the market it costs you money. So let’s say like in #4 you place your home $25,000 over where it should be priced. And your Mortgage Payment and carrying costs (electric, water, etc) comes to $2,500 a month. If your home is on the market for 90 days and that is not unrealistic if you are that much overpriced. It cost you $7,500 for those 90 days. And the $25,000 can be spent real quickly.
In closing we would like to share something that happened to us in November 2015. We listed a home for a past clients Mother and Father in Law. W suggested that based on market conditions and the condition of the home that we list the home at $150,000. Comparables showed home sales $145,000 to $152,500. The home went Active in MLS.
On day 3 we received First Offer, Day 4 2 more offers came in and day 5 a 4th offer was received. We suggested to owner that we request Highest and Best Offer. We did and the home was sold for $157,400 by a cash investor with 0 days for inspection contingency and closing took place 14 days later. To see some other examples of how Nick & Cindy Davis assist you in selling your house. Just click here
We are ready to sell your home. By Pricing your House to Sell, not go into MLS and then just sit on the market. Please feel free to contact us at 813-300-7116 or you can always email us at:
NickandCindyDavis@TampaHomesSold.com
