Welcome to San Diego Blog | July 26, 2016
Home Sellers: Determine Your PRICE
You have decided to sell your home. Now, what price should you list it at? You want it sold quickly and at the highest price.
There are a number of factors to consider before you decide which pricing option is best for you and your family.
- We Push the Envelope on Price and Go Above the Market.
I had a listing in Little Italy in downtown San Diego that was on the market longer than average. The owner did not want to compromise on her price and so we waited until that perfect buyer came. It took a while, but he came along. She was happy and the condo appraised at full value.
If you price your home above market value, you may set a new standard in the neighborhood and find that perfect qualified buyer. However, there are some risks….
-Other agents will reject the price and will not readily show it.
-Home buyers searching online will not see it because it sits above their price range parameters on the major home search sites
-The home will be looked at as priced too high compared to others in that range bringing up the question “Why is it overpriced?”
2. We Price it at Fair Market Value
If you and your agent study the previous sold comps. in the area within the last 6 months and you decide to price your home just slightly above market value, there are many benefits and a few risks……
-When the price is right and your home is appealing, agents are much more likely to show your home to prospective buyers. The more agents who are interested, the more buyers that will see your home.
– Buyers also realize that when you price your home at fair market value, there is less room for negotiation and you have a better chance of getting your asking price- especially in a hot market like San Diego.
-A Sense of competition among buyers can lead to multiple offers. This can actually increase the final sale price of your home.
-Lender appraisals are more likely to be in line with your sales price- thereby allowing fewer chances of your deal falling through.
3. We Create a Buyer’s Frenzy and Price it Below Fair Market Value.
-Pricing below the market puts the seller in control.
-Pricing below the market might encourage a bidding war and might result in multiple offers that exceed the price point. The “winning” buyer will not only pay the highest price but will usually ask for few or no contingencies and want the sale to be super easy for the seller.
-Risks of Pricing below market- the seller may be leaving some money on the table.
Overall, the market speaks and determines the value. If the market is not responding after 30 days, adjusting to a lower price point might be a good strategy. Choose the right professional to help you with your home sale and then listen to your Realtor’s advice and your transaction is more likely to go through quickly and smoothly from the beginning.
I am here to help whenever you’re ready. Laura Ochoa, MBA and Certified Pricing Strategy Advisor 619-920-2823. firstname.lastname@example.org