The first step in selling your home is to
establish a very realistic asking price when you first place it on the market.
You must analyze houses comparable to yours in size, age, condition, and
location -- both houses that are currently on the market and those that have
sold within the past six months. Sold prices, not asking prices, determine fair
market value. Listed below are some things to consider:
Location,
location, location
Location is not just the physical address of the home, but also the quality
of and proximity to transportation, parks, schools, places of worship,
nightlife, shopping, restaurants and activities. Also important is the
perception of safety in neighborhood.
Construction
Type
Consider the quality of construction and the materials used. A brick house will
typically be worth more than a frame home. Also compare the interior finishes.
Are there granite counters and stainless appliances, or laminate cabinets with
basic appliances? Are the floors hardwood or carpeted?
Rooms
Bedrooms, bathrooms (full and half), formal living and dining rooms, family
room, great room, storage, etc. Also, is the room count consistent with
the neighborhood? A 10-bedroom house surrounded by 2 bedroom homes will
typically have a lower value than a comparable house near large homes.
Competition
What other homes are for sale? Compare their features and prices. If new
construction homes are nearby, see what a similar home would cost. Buyers
usually place a premium on new construction since they can choose all of the
finishes that they prefer.
Why not list my home higher than
it is worth?
To be a successful seller, think like a buyer.
Many sellers say that "I can always come down in price." But is
this the most effective method to generate the optimal interest in your home?
Most buyers have been looking for a period of months and are familiar with
market values. An unrealistically high price will cause prospective
purchasers to rule out your home immediately as a poor value. Many buyers will
not even schedule a tour of your home.
If
a buyer walks in your door and quickly comes to the conclusion that your home is
not fairly priced, they will mentally eliminate your house and move on to the
next one on their list.
Reducing your price later may bring back some
buyers, but it will never erase that bad first impression. Further, the longer a
home is on the market, the lower the percentage of asking price is received.
Most experts agree that the best pricing and
negotiating strategy is to price your home to receive optimal early interest
that compels action by a buyer (or multiple buyers) as quickly as possible.
To
receive a complimentary Market Analysis of your home, please call Mark Johnston
at 773-793-7725 or
email at mark@metrotechonline.com
