Dave Ratti
888-200-9443
Your Steps to Selling Successfully
Step 3: Set the Price
Every reasonable owner wants the best possible price and terms for his or her home. Several factors, including market conditions and interest rates, will determine how much you can get for your home. The idea is to get the maximum price and the best terms during the window of time when your home is being marketed.
In other words, home selling is part science, part marketing, part negotiation and part art, and truthfully sometimes part luck. Unlike math where 2 + 2 always equals 4, in real estate there is no certain conclusion. All transactions are different, and because of this, you should do as much as possible to prepare your home for sale and engage the our team to sell your home.
What is your home worth?
All homes have a price, and sometimes more than one. There's the price owners
would like to get, the value buyers would like to offer and a point of agreement
which can result in a sale.
In considering home values, several factors are important:
- The value of your home relates to local sale prices. The same home,
located elsewhere, would likely have a different value.
- Sale prices are a product of supply and demand. If you live in a
community with an expanding job base, a growing population and a limited
housing supply, it's likely that prices will rise. Alternatively, it's
important to be realistic. If the local community is losing jobs and people
are moving out, then you'll likely have a buyer's market.
- Owner needs can impact sale values. If owner "A" must sell
quickly, he/she will have less leverage in the marketplace. Buyers may think
that "A" is willing to trade a quick closing for a lower price -- and they
may be right. If "A" has no incentive to sell quickly, he/she may have more
marketplace strength.
- Sale prices are not based on what owners "need." When an owner says, "I
must sell for $300,000 because I need $100,000 in cash to buy my next home,"
buyers will quickly ask if $300,000 is a reasonable price for the property.
If similar homes in the same community are selling for $250,000, the seller
will not be successful.
- Sale prices are NOT the whole deal. Which would you rather have: A sale price of $200,000, or a sale price of $205,000 but where you agree to make a "seller contribution" of $5,000 to offset the buyer's closing costs, pay a $2,000 allowance for roof repairs, fund two mortgage points, re-paint the entire house and leave the washer and dryer?
How much is too much?
Because all transactions are unique there is flexibility in the marketplace. The
amount of flexibility depends on local conditions.
For example, suppose you're selling a townhouse. Suppose also that there have been five recent sales of the model you own and that sale values have ranged between $200,000 and $210,000. You now have an idea of how your home might be priced. In a strong market perhaps you can ask for $210,000 or a little more. If the market has slowed, $210,000 may be a reasonable asking price, but perhaps more than the final sale price.
Who can help?
Dave Ratti and his team are active in the local marketplace and can provide
assistance with pricing, marketing, negotiation and closing.
We're familiar with the terms and conditions that go into individual sales, not just published sale prices which may not reflect various premiums, discounts and adjustments.
To have a Free consultation, just call Dave now, 888-200-9443 - it's simple!