Priced To Sell

What is the most important factor when you decide to sell other than location? What is the first thing online buyers look at before searching a homes records? Layout? Amenities? Fancy toilets? Nope, the answer is price. Since price is such an important factor you want to get it right the first time. If you overprice your home in the beginning demand and interest will deplete after the first 21 days, having buyers wonder why it has not sold. However, on the other side of the fence, if you price your home to low, you will receive multiple offers driving the price back up and eating up time. This is why a real estate agent will use the strategy of comparative market analysis (CMA).

What is a CMA? A CMA is when an agent will analyze the current market for homes that have similar size, locations, and amenities. These listings could have been sold, expired, or are still on the market. All listing compared in a CMA should have been listed within the last 3 months, due to the continuous changing of markets. This data will then give a knowledgeable agent the ability to price a range of where your home should be marketed at ensuring maximum returns and minimum time.

Ever heard of price banding? This is when the homes for sale in the neighborhood to the east are priced $120,000 and the neighborhood to the west is $140,000. Being in the buffer area you are given a good idea to open at $130,000. Another excellent tip when pricing is odd numbers. These numbers, like $199,999, will seem more approachable to customers rather than $205,000. They will also show up more frequently in price range searches, for example $129,999 will show up in a search of $100,000-$130,000.

Be the buyer. Yes, your home has a deep sentimental value to you and you just did a $5,000 renovation. But, not all renovations will equal out dollar for dollar. In fact, Remodeling Magazine reports that the average payback for a new renovation was only 56.8% in 2017. When it comes down to buying, buyers and real estate agents will base the pricing on facts and new trends. Yesterday could have been shag rugs and checkered tile kitchens, while today is granite counter tops.

Is your home priced to sell? Listing right the first time is critical in maximizing returns while minimizing time on the market. If you're looking to list you home with a knowledgeable agent who specializes in your area I would be glad to help. You can contact me at:

P: 618-554-0052

or

E: austinyagerrealty@gmail.com

Have a wonderful day!

Sources:

Berg, Kris. “Pricing Your Home to Sell.” HGTV, HGTV, 15 Sept. 2018, www.hgtv.com/design/real-estate/pricing-your-home-to-sell.