How to Price Your Home Strategically - Buyers for residential real estate base their decision to buy a home driven primarily by the emotional appeal and secondarily supported by their perception of fair market value. The List Price of your home is compared to other available homes for sale in the area with similar intrinsic qualities.
When financing is a part of the purchase transaction, the Purchase Price must meet real estate appraisal guidelines supported by recent nearby sales (within the past 120 days) of like-kind Sold Properties, and current Pending Sales and Active Listings.
The art of pricing a home accurately is to analyze the above stated perspectives and data to determine a range of Fair Market Value and then select a List Price within this range. If the List Price is too high, make List Price adjustments if needed, usually after the first 3 to 4 weeks of full market exposure on the MLS.
When a property in high demand is offered for sale in a "Seller’s Market", we usually recommend a specific Offer Review date within 7 to 10 days from the MLS debut date to generate competing offers and the highest possible sales price.
Together with you, we develop a List Price strategy incorporating your primary goals and objectives:
• Your urgent need to sell as soon as possible
• Your ability to "time the market" to benefit from limited supply with high demand
• Your resources to complete cosmetic and/or repair improvements to obtain the highest possible sales price
• Your goal to sell "As-ls" or in "fully optimized" condition including professional staging
Local real estate market trends
• Supply and Demand, average Days on Market, Seller sales concessions or price adjustments
• Buyer's Market or Seller’s Market trend
• Median home value for your zip code versus the estimated value of your property
• Current volume of Pending Sales versus Active Listings (velocity of sales)
• List Price to Sold Price ratio
Macro - economic conditions
• Home loan interest rates – increasing or decreasing
• Availability of financing - tightening or loosening credit, appraisal, and loan underwriting requirements
From the desk of Pete Sabine & Leslie Whitney
Real Estate Market insights and expertise
Call or text 925.787.2548