Report # 7 - 10 Tips for a Successful Sale!
Tip # 1 Price your Home Carefully
Getting the price right is critical to a successful sale. Price your home too low, and it may sell quickly, but you could end up without enough money to facilitate a move or new home purchase easily. You might end up feeling dissatisfied or even ripped-off. Price it too high, and you could sit on the property for months. Here are some common misconceptions about pricing. Current price is determined primarily by the original purchase price-The fact is, markets change. Your home could be worth a lot more, or a lot less, than when it was new.All improvements add to the overall value of the home-Wrong! Many homes are over improved for their size or neighborhood. Some improvements add value, such as the addition of a garage or extra rooms in the basement. But others are a matter of taste and style. Don't expect your favorite improvements to mean anything at all to your prospective buyer. What would it cost to replace?-Replacement value is not a valid measure of existing property value. Period. Just like a used car isn't worth the same as a new one, no matter how well-maintained. Overpricing could cost you far more than you ever hoped to gain. Here's why:
- You may end up selling at LESS than market value. This may surprise you, but if your home is overpriced, buyers in that price range will probably select larger homes in favor of yours. At the same time, your best prospects may never see it because it's out of their range. The house will remain on the market longer, adding to your carrying costs, and ultimately, you may have to cut the price below market value to move the property.
- You may lose your opportunity to make a good first impression. A new listing creates excitement in the market. REALTORS® working with buyers who are waiting for something new to become available bring their prospects. Your home will get the most activity and you're likely to see the highest and best offers during the first 30 days. If your price is too high, you'll miss your opportunity and wear out your welcome. Eventually your listing becomes "stale." It gets a reputation in the real estate community that's tough to overcome, even after you lower the price.
- You could lose negotiating leverage. If your home is on the market too long, you may find yourself having to justify the price to a wary buyer. You'll lose your financial and mental edge and may find yourself accepting too low an offer in the end.
- You may encounter appraisal problems. The lender has to be able to justify the price the buyer will pay. If the appraisal doesn't support your price, you could lose the contract even after accepting the offer.
- The good news is, overpricing your home makes a valuable contribution to the sale of other, more competitively priced homes in your market. Buyers will see similar homes at a lower price and suppose they're getting a great deal. So perhaps there will be a reward waiting for you in heaven for your selfless act of service.