Pricing

Properly pricing a home is the single most important aspect of getting a home sold. All homes have a specific market value. "Market value" is usually defined as what a willing buyer will offer and what a willing seller will accept--at arms-length and free of entanglements. This market value is dynamic and will move up or down as market conditions fluctuate.

Almost uncannily, the dynamic interplay of many unrelated buyers and sellers collectively finds the acceptable pricing point--the selling price.

Sometimes, unfortunately, this market price is disappointing for both buyers and sellers. For buyers, the selling price will not adjust down to the price that they can qualify for on a mortgage. Conversely, for sellers the selling price will not adjust upward because that's the amount they have "into it" or what the seller needs to "get out of it" to buy their next house.

The final selling price will be established by dynamic market forces, and might not line up with the needs and desires of buyers and sellers. During times of a strong buyers' market accompanied by falling home values, it is very important--even critical--that, from the beginning, sellers price their property at a price that will allow it to sell quickly. During a market when prices are declining, time plays out negatively for sellers as prices fall ever further as time progresses.

Our New Home Connection agent will provide you with the information you need to effectively price your property for a successful sale. Properly priced properties sell even in a slow market.

WARNING! Beware of real estate agents who will suggest that they can overcome strong market forces, and then lead you on by telling what you want to hear with an inflated value, only to later on, when you're worn down, persuade you to lower your price and expectations. Remember that the market sets the SOLD prices, not a Superman-type agent who promises more than he can deliver.

The job of an appraiser is to accurately assess the value of a home at a given point in time. The most important information they use is comparable sales, i.e., pricing of homes like yours. They will study homes that have sold and homes that have not sold and their prices. They will also consider the pricing of similar homes currently for sale.

In times of rising prices, they will tend to flex on the upward side as that is the way the market momentum is moving. In times of falling prices, the appraiser might tend to do the opposite. So, even if a seller somehow "lucks out" and finds a buyer willing to pay an above-market price, the market-based appraisal will establish a value upon which the lender's max loan is based. (The greater majority of home sales are financed through mortgages.) So, after much time, even if you do find a buyer at an inflated price, the forthcoming low appraisal price will most likely squelch the deal. Another fact to consider is that cash buyers usually get an appraisal, too! Cash buyers do not pay above appraisal price. They usually pay below appraisal value.

Next to price, property condition is the most important factor in producing a sale. Optimizing the condition and cleanliness of a property before showing it can be critical. While property, even in poor condition, will sell at some low price, preparing it for sale will maximize the selling price.