Pricing is directly related to the amount of time it takes to sell a property and whether it will sell at all. Pricing is especially important in a down market or when there are an abundance of real estate listings for sale. Below is advice on pricing properties to sell quickly.
Recognize the Market
Every real estate market varies. When you hear information on the news, those usually refer to national averages. Your particular town may be dramatically different. A local real estate professional can provide a comparative market analysis on your property. This compares recent sales of similar real estate and furnishes an expected price range in which your home may sell. This figure may vary based on the season and recent sales, so avoid referring to past information.
Be Realistic
When reviewing the market analysis figures, understand that it is a range. Where your home falls in that range depends on different factors and your target timeline. As a home owner, it is typical to feel a sense of attachment to your home and to the work that you have put in. Unfortunately, not all potential buyers will assign equal value to different features and amenities. Expect that you may not attain the full amount spent on repairs. Furthermore, home prices may be affected by foreclosed homes in the area, which are often sold at significant discounts and are still considered comparable properties. Market value is defined as the price that a buyer is willing to pay for a home at a given time. It may not necessarily match your requirements or resemble the price at which you purchased the property.
Pricing Properties To Sell Quickly
Pricing a property too high will result in valuable time being lost. If the real estate market decreases further during that time, the home will usually sell for even less than it would have if priced correctly to begin with. Additionally, home buyers tend to have a negative perception of properties with lengthy market times. This perception is difficult to overcome even if a property drops in price eventually. Pricing too high does more harm than good.
Some Additional Advice for Sellers
If the market value of your Massachusetts or NH home is far too different than your expectations, it may be better to monitor the market and wait for prices to improve rather than overpricing and having little success for months or even years. If you must sell and need to do so within a specific window of time, selecting a price appropriate for the real estate market and competitive with other properties will be imperative to achieving your goals. Time is money and the loss of valuable time can be more costly than you may expect. This information on pricing to sell quickly was prepared by Scott Strang at Scott Gregory Group.