When it comes to selling a home, one of the most crucial aspects is pricing. A well-researched pricing strategy is essential to securing the best and fastest returns.
Often, sellers will put too high of a value on their home in the hope of getting maximum returns. Doing so can backfire terribly, however, and result in the home sitting on the market for too long. This can give potential buyers the wrong idea – they may think there’s something seriously wrong with the home – and cause them to look elsewhere instead.
When pricing a home, it’s best to ask me to first research recently sold homes and similar homes for sale in Cape Coral, FL, and depending on the population density that circle of homes to consider will vary. The best home pricing strategy leaves room for negotiation for terms and will be in line with market trends in the area for the same property type. Price is only one term that is negotiated on a purchase agreement.
The basics of home valuation
When it comes to pricing, it is every seller’s goal to find the sweet spot that’ll get the home off their hands at the best price in the shortest time possible. No doubt, homes that are priced cheap are likely to sell quickly, but that’s never ideal for sellers.
There are ways for sellers to ensure that their home meets market value and still make a quick sale. The key is following a well-researched pricing strategy: A home that’s priced correctly will create competition tension. This tension will be apparent by the correct level of activity. A property receiving little to no activity has a problem with either price, promotion, or the property itself.
The significance of “comps”
Comps – or “a term widely used real estate – is one of the most important determinants of a home’s value. When pricing a home, it is important to look both at the prices recently sold homes commanded and what the current asking prices for similar homes in the area are.
A great real estate agent will be able to do a comparative market analysis or share “comps” for homes in the same immediate area. It is crucial to find a reliable Realtor with a great understanding of the local market and proven experience in houses for sale in Cape Coral, FL.
In general, the comps used for analysis should be:
- Recent ( No more than a year, typically 120 days)
- In a fixed search area ( depends on the uniqueness of the property or population density)
- In an optimal area of coverage ( mirroring current buyer trends)
- Within the age and size of the property for sale ( size and age of the property are 2 of many factors used to compare properties)
Without comps, the price of your home can be a guesstimate or based solely on the price per square foot of properties in the area. It won’t include vital information on home features. A change in the number of bedrooms and bathrooms in a similar house in the same neighborhood has a significant effect on the price of a home. This is why it is always best to have a seasoned Realtor guide you.
Encouraging a bidding war
It is difficult to encourage a bidding war to get top dollar for the home. When marketing is correct; demand for homes in the area is high; and availability is scarce, buyers may well compete with each other for your home.
Securing a high sale price in such a competitive market might seem easier, but one must always bear in mind that if a home is priced or/and marketed incorrectly, potential buyers will balk, haggle for better terms, or more likely look elsewhere.
Consult your agent. Determine the best pricing strategy based on current market conditions. Don’t let emotions or preferences get in the way of objective goals and assessments.
Be prepared to adjust your price
The longer a home stays on the market, the less attractive it becomes to prospective buyers. Therefore, it can be worthwhile to lower the price to gain competitive tension and thereby sell the home quickly. Sellers should be prepared to lower their asking price if you are not getting enough weekly showing requests. It is typically a better idea to reduce the price in one fell swoop than to make several price reductions over time, however, it takes an expert to advise with surgical precision It is important for sellers and their agents to recognize when pricing needs to be adjusted and do so quickly before a window closes or a selling season is ending.
Home sellers would do well to seriously study how to best price their home. When considering how to sell your house yourself, one must always bear in mind that price will always be a key factor. Oftentimes, sellers aren’t really aware of the cost of selling a house, so there is real value to finding a real estate agent who can help to price a home correctly.
Thinking about selling your Cape Coral, FL home? Rely on Mike Lombardo to get your home sold quickly at a good price. Call the most reliable real estate agent in Cape Coral, Florida today at 239.898.3445 or leave a note here.