1. How do I determine the best price for my house?
Review the Comparative Market Analysis provided by your Realtor. Ask a lot of questions.
2. Is there one major factor that determines price?
Recent solds are the true determining factor for market value.
3. Should I price my home similar to those homes listed close by?
If these similar homes have been listed for quite some time and not sold, it shows that buyers are not yet willing to pay that price. The actual solds are more accurate.
4. Should I price my house high and test the market?
Pricing your home high loses the six important advantages when the listing is new and the existing buyers in the market are waiting for market-priced properties. Those advantages are: sign, MLS update, open house, office tour, advertising and MLS book.
5. How can overpricing my house actually help the buyer?
Overpricing leads to the house being on the market for a long time. That leads to buyers believing that the sellers are now desperate or that something is wrong with the house. Either conclusion leads to offers lower than market value.
6. What is computer shunning?
If buyers want a home between $245,000 and $250,000, and your home is worth that amount but you have overpriced it at $269,000, then the buyer never sees it because the computer search only retrieves homes that are in the $245,000 to $250,000 price range.
7. Why not list high and hope for a buyer who doesn't know prices?
Buyers buy by comparisons. They get to know values in one quick day. Even if a buyer did not look at other homes and bought an overpriced home, the appraisal would be less and the home sale would be discontinued because financing could not be obtained.
8. What if I need a certain amount of money to be able to sell?
The market is just that — the market. If the market indicates houses in a specific area are worth $150,000 to $155,000, that is all someone will pay. You need to then determine where the balance of the money will come from if you need a certain amount.
9. Does the cost of my improvements equal what I can get for them now?
Yes, if the improvements are similar to other homes around you. However, if you have overimproved the house beyond the features offered in other homes in the area, the answer is no.
10. Does time on the market affect selling price?
There is a direct correlation between time on the market and price. Houses over 24 weeks on the market may receive a full 10% below price.
11. How do I justify my price to the buyer?
Allow the Realtor to justify price to potential buyers based on the Market Analysis of sold properties.
12. What if the house sells in the first weekend — Did I ask too little?
If the Realtor prices the home at market value, there are already buyers in the market place who have looked at other properties and are waiting for market value homes. They usually buy as soon as a good property becomes available.
13. I have some expensive improvements to the house — Should I include them in the listing?
If you really want an improvement like an expensive chandelier — then take it down now and don't even let the buyers see it. If you feel these improvements can help sell the home quicker — include them.
14. Is selling my house an emotional decision?
Yes. 78% of a decision to buy or sell anything is emotional. That is why Realtors can act as third party unemotional negotiators.
15. Should I invest any money in the house before I sell it?
Invest money in the home if the costs of materials are low, such as paint, and if you can do the work yourself. Sometimes a small investment can mean a quick sale.
16. Do I really need to keep the house clean for every showing?
Yes, make it as close to a model home as possible. Everyone wants to look at a home in as perfect condition as possible and then imagine how they can make it their own.
17. Does advertising my house help it to sell?
Advertising sells 8 to 11% of all homes. The important ad by the Realtor is not necessarily your home advertised but rather similar prices and locations to "pull in" calls. Only 4% of callers actually buy the home they call on.
18. What happens after we list the house?
Here is an entire marketing plan to let you know exactly what happens at each step of the home sale.