Thinking about selling your home? Selling a real estate property takes a little patience and a lot of preparation before you can see the pay-off. Determining the right home price is much more a science than an art. Think of it this way: the price for your house has already been established by the real estate market. There is a relatively narrow price range that buyers will consider for a particular home, with particular features, in a particular neighbourhood.

Factors that influence overpricing:

  • Attempting to recover money invested in renovations and improvements
  • Desire to use profits to purchase a higher-priced home elsewhere
  • Original cost of the house was too high
  • Lack of housing market information
  • Building bargaining room into the price
  • Adding on for perceived emotional value

Consequences of overpricing
Many sellers believe that if they price their home high initially, they can lower it later. Unfortunately, when a home is priced too high, it is virtually ignored by buyers and real estate agents alike. This is especially important when a home first goes on the market. New listings typically generate a flurry of activity as selling agents and potential buyers take notice. Overprice, and you stand to lose out on any potential business stoked by early market excitement.

And things donít improve for the overpriced house as the weeks and months wear on. Gradually, the seller is forced to move the price down to market value, but by that time the home has been for sale too long, and buyers become wary and reject the property. Many will wonder why the house has been on the market so long, and will suspect there is something wrong with your house that is affecting its ability to sell.

You may also be tempted to think interested buyers will simply make a lower offer. But if your home is overpriced, buyers looking in a lower price range may never even see your homeís listing. Those who can afford a home at your asking price will quickly recognize that they can get better value elsewhere.

The benefits of pricing right:

  • Your property sells faster, because it is exposed to more qualified buyers
  • Your home doesnít become stale and lose its marketability
  • The closer your asking price to market value, the higher the offers youíll receive
  • A well-priced property can generate competing offers
  • Real estate agents will be enthusiastic about presenting your property to buyers

Tips on getting your property ready for sale:

  1. declutter / depersonalize all spaces, counters tops, walls, closets etc.
  2. keep clean and ready for showings at all times
  3. make sure your home can be accessed on short notice
  4. complete all those partially finished projects
  5. curb appeal is important, keep landscaping, yard & flower beds maintained
  6. remember, buyers can have a critical eye when they are looking at potential homes. Give them a great first impression!

Another factor we'll take into consideration when setting the price of your home is what the competition is like. Buyers often have seen other properties in your area and have a good idea of what is currently available. They'll compare your home to as many as 10 other properties to help them determine what they feel is good value. We'll make sure your property is in line with the market based on the competition and based on other market factors.

Positioning your home for the market involves correctly pricing your home. We'll work with you to ensure we take all factors into account. Pricing it correct at the start will ensure a high level of interest. Reducing the price later may not generate the same level of enthusiasm.

This graph illustrates the importance of pricing correctly. The centerline represents market values. As you move above this market value, you attract much smaller percentage of prospective buyers, greatly reducing your chances of a sale. Conversely, as you move below the market value, you attract a much larger percentage of potential buyers.

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