Sellers do NOT determine Price; Buyers DO! What?? This is the one Listing appointment principle that is the most difficult for my Sellers to really accept. Each one of us, when we put on our Sellers’ shoes, thinks of all the money invested and time spent on our property. The Reality of the Market at the time of your Listing MUST over ride these numbers and personal feelings. IT DOES NOT MATTER. What matters is very simply “What will a Buyer pay for your property?”
Working with a local Realtor who can show you exactly what the past SOLD properties have included, and how they compare to your own is critical to determining your Listing Price. Your Upgrades List is very important, as is your Lot orientation, architectural style, actual floor plan, quality of upgrades etc. Do NOT start adding the dollar amounts of these upgrades together and coming to a “number you HAVE to have to sell.” Again..ultimately, that does not matter to your potential buyer. Put on your Buyers’ shoes now. When you are looking for a property, there are certain things on your “Drop Dead Must Have list”. There are also amenities that you “Would Love to Have, but can Live Without.” But, you as a Buyer, do not want to feel that you are paying the highest price for that home in that Neighborhood.
Sellers: Believe this! If the property is listed too high for the development based on recent activity and past SOLD properties, you may generate alot of foot traffic into your home, but when and IF you receive a written offer, it will not be for anything like what you want to net. Very likely that if you’re priced much too high/sf., you will not receive a written offer at all..unless it’s from Investor bottom feeders who are throwing offers against the wall to see which ones stick. If you want a serious buyer, for YOUR PROPERTY, study those comps. Another important factor that Sellers often forget. “Will your home price justify an Appraisal substantiating the number?” Loans are still cheap, rates are good, and a local Lender will KNOW every other property sold near to yours. They are looking for Fair Market Value. Adjustments for location and amenities are always factored in, of course, but remember that you do not want to appeal ONLY to the Cash buyers. Nothing wrong with Loans! Take a quick viewing of this very short video regarding just one of the things Appraisers look at..your square footage..
Park your Ego at the door, drink a huge dose of the Reality Cocktail, and price your property to SELL!