Lynn Fairfield

IL/WI Broker

Price Determination

 

The interesting thing about pricing is this – it doesn’t really matter what either you or I think the listing price or selling price should be.  What matters is what actual buyers have paid for properties similar to yours with similar amenities, in a comparable neighborhood, during the current real estate cycle.

 

To determine your homes worth in today’s market, we will take a look at the recent history of comparable homes that have sold in your neighborhood and nearby community. I will develop a Competitive Market Analysis (CMA). The CMA identifies not only homes that have sold, but also houses that are still active on the market, those that are pending-or-ready to close, and those that have been recently taken off the market. Through this study I can determine your homes probable fair market value range. This range gives a fair approximation of how much your house will sell for and approximately how long your home will be on the market. Together we will establish a realistic price which will net you the highest possible dollar in the shortest period of time.

 

After we have established your homes optimum price, I will prepare a net proceeds sheet.  The net proceeds formula page outlines the various closing expenses you can expect and gives you an idea of what you will net from the sale of your home.

 

 

Price is first and foremost in the minds of buyers.

When a seller prices a home right it will sell well.”

 

 

Dangers of Overpricing

 

Many potential buyers won’t even look, thinking it’s out of their range.

 

Those buyers who do look are shopping by comparison, and looking at your home may convince them to make a bid on a different home.

 

Since an appraisal is often required in financing a property, it is futile to price a property for more than it’s worth. The appraisal will determine the loan amount a lender will be give for a mortgage.

 

Properties left on the market for extended periods of time usually become “shopworn”; causing many to believe something’s amiss.

 

Overpricing tends to dampen the other salesperson’s attitude, making it less likely to be shown.

 

Overpricing lengthens marketing time, and invariably results in a lower selling price than would have been otherwise obtained.

 

Realtors do not control what a buyer may purchase, but do control what a buyer sees by searching a specific price range.  If your property is comparable to others at a lesser price but priced out of the “search range” a potential buyer will never see your home.

 

Good condition of your home does not make it worth more than others that are comparable in your marketplace, and poor condition does lower the value a buyer will place on a property.