What's my house worth P.2
Yesterday I posted on properly pricing a home for sale. Here are some of the tips I mentioned for sellers to consider.
Why are you selling? Are you selling because you want to, or have to? If it is the former, then you can hold fast to your price. If it’s the latter, then you need to evaluate a few things. If you have purchased another home and can’t afford more than one payment, then you need to look at the costs of carrying the home. For example, how much is it costing for your mortgage and all other expenses related to the home? How much would that be for 3 months, six months or even a year? Would it be worth it to mark the price down the amount of the carrying costs to sell it quickly? If you need to sell due to a transfer, then keep in mind the possible hassles of selling it vacant after you have moved. Again carrying costs come in to play.
What is the number of listings on the market in your area, and the average days on market? These are important numbers. If you have a lot of competition, it will most likely take longer to sell. If you have a time limit, then you need to price at a point that will be favorable in reference to the average days on market. For example, if the range of comparable sales is $400K to $425 K and the average days on market is 90, then you probably shouldn’t hold out for the upper end if you need to sell in 30 days.
If your property is already on the market, what has your traffic been like? If you haven’t had any traffic, then the agents think your home is overpriced. If you have had good traffic, but no offers, then the buyers think your home is overpriced (assuming it shows well otherwise).
It is hard for anyone to criticize their own home. But you need to be realistic about what it has to offer. The best way to do this is look at the other homes for sale. Talk to your agent about doing this. Just because it is the same square footage, doesn’t mean it’s worth the same price.
Better yet, ask yourself, "what would I pay for my home if I were looking to buy it now?" You need to be honest and realistic. If you wouldn’t pay what you are asking, why do you think other people will? Once you figure out what you would pay, mark it up slightly for negotiating room.
Now, obviously there is a lot more to pricing strategy than this. But, maybe this will give you some ideas. If you’re not sure, contact a Real Estate Agent (and in the Phoenix and Scottsdale area try us).
It would be great if we could all reap the profits of the up market of last year. Don’t think about what you might make on the sale of the home in dollars, but look at the percentage equity growth you have made. You might feel a little better than just looking at dollars if you have to adjust the price
Adam Tarr, ePro
Sharon Kotula, ABR
RE/MAX Excalibur
Scottsdale, AZ
Your Phoenix Area Real Estate Source
480-483-3333
info@WeAreAZRealEstate.com