« Toronto Real Estate Board: | Main | Home sellers face $300 'green' audit »

The Price is Righteous

Setting an equitable yet compelling price is key to a successful sale. But its tough. Buyers are usually well informed about recent events in the marketplace. They select homes by comparison shopping and are keenly aware of subtle differences in features and value. In their eyes, your price must be justified in comparison to other available homes.

Obtaining the best return for your property requires competitive pricing from day-one. A home should be priced according to recent market data comparisons.

There are a number of factors that influence the value of your property:

  1. Prior Sales
  2. Location
  3. Condition
  4. Improvements
  5. Market Conditions

Competitive Market Analysis

Taking these factors into account, we will prepare a competitive market analysis to reflect the current market value of your property. It includes an examination of your property as well as a study of competitive properties currently on the market and those that have recently sold. This information helps you to properly position your property.

No Realtor can control market value. The selection of a listing agent should be based on their service, fees and reputation, not on their estimate of market value. It is the 'invisible hand' of the market that determines the sale price you will ultimately achieve.

Competitive Pricing vs. Overpricing

First impressions are lasting. A house realistically priced and properly presented from day-one offers the best opportunity for you to sell quickly and obtain the best price.

Qualified buyers and their agents have been looking in your area and waiting for a suitable house at an appropriate price to come on the market. If reasonably priced, it is possible your property will sell quickly to waiting buyers.

Competitively priced properties encourage reasonable offers, pleasant negotiations and a smooth closing.

Overpricing costs in terms of money, disappointment, and missed opportunities. If the price is too high , buyers may not even look at an otherwise attractive property.

An overpriced property can go stale after the important first few weeks when the home is new on the market and getting the most exposure. Then, when the price is adjusted at a later time, the house is often overlooked.

If you were able to arrange a sale for substantially more than comparable properties it may fail to close through difficulty securing an appraisal and mortgage financing.

The Paradox of Price: When the 'price is right' buyers get involved quickly and sellers gain a competitive advantage. Use the paradox of price to your benefit. If you have the will to set a compelling price, the reaction of the marketplace will amaze you.

February 23, 2009 in Selling Toronto Real Estate | Permalink

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c51e453ef01116893ba97970c

Listed below are links to weblogs that reference The Price is Righteous:

Comments

Price accounts for over 90% of all home sale marketing.

Posted by: Prince William Homes | Mar 1, 2009 8:17:45 PM

Price is the most important thing you can do to sell a home. Price accounts for over 90% of the home sales process. The remaining items are location, cleanliness, desireablity, updates, and in today's market motivation.

Posted by: Atlanta real estate | Mar 1, 2009 10:43:17 AM

Post a comment






 

Thank you for visiting!