The value of your property is determined by what a BUYER is willing to pay in today’s market based on comparing your property to others SOLD in your area. Pricing property at market value maximizes total economics of sale.
WHAT IS YOUR PROPERTY WORTH?
Factors that don’t affect the value of your property:
- What you paid for your property does not affect its value
- The amount of cash you need from the sale of your property does not affect its value
- What you want for your property does not affect its value
- What your neighbor or another associate says your property is worth does not affect its value
- What it costs to rebuild your property today does not affect its value
- What another real estate agent says your property is worth does not affect its value
- What an appraiser says your property is worth does not affect its value
BUYERS ALWAYS DETERMINE VALUE!
Timing is extremely important in the real estate market. A property has the greatest opportunity to sell when it is new on the market as it attracts the most activity from the real estate community and potential buyers when it is first listed.
Prior to setting the price HausAngeles will help you with a market evaluation of your property that will help you set the price for your house.
Upon setting the price, one of two things will happen:
- We will agree on the price and our team will immediately go to work for you
- We may choose to TEST the market for a specified period of time. If there are few showings and no offers, then we will make a market price adjustment
Do NOT list with the Realtor who gives you the highest price. Expect your agent to suggest a price range to help you make a decision. Some agents will suggest a high sale price to lure you in and then come back in a few weeks for a heavy price reduction. This is called ‘buying a listing’.
If you bought AAPL stock a year ago and wanted to sell it today, would you call your stockbroker and tell him that you insist on selling at a 200 percent profit or would you ask them to tell you what the market price is? This is the same principle with HausAngeles and our market analysis of your home.
We prepare a thorough, well-researched, market analysis on every listing. As a result, we sell our listings at very close to asking price. It’s part of the service you pay for.
BENEFITS OF PROPER PRICING
When your property sells faster, you save carrying costs, mortgage payments, taxes, insurance, and other ownership costs.
If you have sold a property before, you know the energy it takes to prepare your home for showings, keep the property clean, make child care arrangements, and generally alter your lifestyle. Proper property pricing shortens market time.
EXPOSURE TO MORE PROSPECTS
At or below market value you open your home to more people who can afford it.
INCREASED REALTOR AND SALESPERSON RESPONSE
When other realtors are excited about a property and its price, they make special efforts to contact all their potential buyers.
BETTER RESPONSE FROM ADVERTISING AND SIGN CALLS
Ad calls and sign calls more readily turn into showings when price is not a deterrent.
When a property is priced right, buyers are less likely to offer low, for fear of losing a good property.
MORE MONEY TO SELLERS
If a property is priced right, the excitement of the market produces higher sales prices. You net more in terms of actual sales price and lower carrying costs.
Improvements should generally be made for enjoyment, not for resale. You cannot add an item to a property, select it to your style, use it, and then expect a buyer to pay the cost of the improvement.
Your need for money does not increase the value of your property. Base your opinion of value on recent documented sales price.
BUYING IN A HIGHER PRICED AREA
Values are location specific. High values in your new destination do not increase the value of your existing property.
ORIGINAL PURCHASE PRICE
Chances are you paid fair market value when you purchased your property. It’s not that the price was too high at the time of purchase; rather, the market has experienced subsequent change.
Buyers may offer low, but they will do that at any price. It is easier to negotiate up to a fair market value than to an inflated price.
MOVE ISN’T NECESSARY
Even if your move is not necessary at the moment, it is important to price correctly to preserve your marketing opportunities when the move becomes urgent.
TRYING IT AT A HIGHER PRICE FOR A COUPLE OF WEEKS
The majority of activity on a listing occurs in the early period of marketing. This happens because Realtors maintain an inventory of active prospects that have been cultivated over time. When a property is newly listed, Realtors® arrange for these prospects to see it. Once this active group has seen the property, showing activity decreases to only those buyers new to the market. For this reason, it is important that the sellers have their property in the best condition and at the best price when first exposed to the market. You get to price your property correctly just ONCE. After that you’re always chasing the market.
THEY CAN ALWAYS MAKE AN OFFER
The wrong price attracts the wrong buyers, not the right ones. Realtors find properties by price range using the Multiple Listing Service. If you price your property above its range, it will not appear on the printout