"YOU" the Seller sets the price of the home, but the buyer determines the value.
You control four of these!
Your Agent Does Make a Difference!
* The Price
* The Condition
+ The Location
* The Terms
* The Agent
Fact – More activity will take place in the first few weeks of the listing than during any other period.
The longer your home stays on the market, the more likely agents and prospects will think something is wrong with it. There may be nothing wrong with it, but perceptions can become more important than the truth. If this happens, the result is that the home will be shown less, actually making it more difficult to find the right buyer for your home.
Condition of the home is important because most buyers, regardless of their price range, spend most of their savings on down payment and closing costs. This means they won’t have the funds to make necessary or cosmetic repairs immediately and will have to live with it the way it is.
The best strategy is to replace the floor coverings and paint with neutral colors, rather than to give the buyer an allowance to pick what they want. Give the exterior of the home “Curb Appeal”, you don’t get a second chance to make a “Good First Impression”. Even if the buyer can imagine doing these improvements, they will usually want you to drop the price more than it would cost you to have it done.
Location considered the very most important factor when buying a home and it is still important when selling the home. However, since the home cannot be moved, an adjustment in one of the other areas, usually price must make up the location.
It is possible that a buyer will pay a premium price for an excellent or unusual location. For the same reason, but with opposite effects, if the home has a poor location, the buyer will want a lower price.
Price is the single most important factor in a successful sale. It can overcome other obstacles including location, condition and terms.
If you must adjust the price it must be noticeable in order to create increased activity. Part of this is human nature which explains why stores price items at $9.99 instead of $10; it sounds less.
Fact – Buyers compare your home with others on the market.
Buyers will compare the different homes that they see to determine value. If two or more homes of the same size are on the market in the same area, for the same price, the one in the best condition will probably sell first.
If two or more homes of the same size are on the market in the same area, in the same condition, the one with the best price will probably sell first.
If two or more homes in the same condition are on the market in the same area, at the same price, the largest one will probably sell first.
If two or more homes of the same size are on the market for the same price, in the same condition, the one with the best location will probably sell first.