How you price your properties is an important part of your marketing plan and can have a large impact on the success of your business. Here are a number of strategies to help motivate buyers and move your property.
Under Market Value. Underpricing can be a good way to generate multiple offers on a property and may help you make a quick sale. Pricing a home under market value of similar properties may also cause a bidding war among potential buyers and drive the price to market value or higher. Most sellers are not willing to adopt this strategy, but it can be quite effective.
Over Market Value. Some realtors believe that overpricing will lead to higher initial bids on a property. Unfortunately, it may also make the property sit on the market longer. Overpricing is best used when the inventory of similar properties is low in the area. If you have the only three-bedroom, two-bath condo available in a luxury building, you may be able to command a higher price than similar units have sold for in the recent past.
Fair Market Price. The most straightforward strategy is to price the home in the same range as other properties that are of similar style, size and condition in the area. By doing so, potential buyers who know the value of the homes in the neighborhood will consider making an offer on the property if it suits them.
Pricing per square foot. If you have a property and can’t find any homes in your area that are similar in style, you could base the price on the square footage. Look at recent sales of properties that are as close in size and condition as possible and determine the average price per square foot. You can use that as a guideline to determine the listing price.
Remember, the type of property, along with the current market conditions in the area, should always be considered when deciding on a pricing strategy. The most important thing is to choose the strategy that you are comfortable with and make adjustments if needed. A qualified real estate professional can help you with your pricing strategy.
Source: American Home Shield
It can be a bit overwhelming when deciding to sell your property. The most important thing to remember is to be flexible, especially with sale terms. Purchase price, closing dates, move-in dates, storage, appliances, furniture and fees may all require a little negotiation. Whatever the terms, don’t let personal feelings stand in the way of a good deal.
Start with the basics. Curb appeal, cleanliness, overall good condition and updates are especially crucial. Any little flaw should be taken care of before the first buyer drives up.
- Attend open houses in your neighborhood to see what “sell-ready” really looks like. If you’re shy, ask your Real Estate Agent to walk you through a few sell-ready examples.
- Start with the exterior to ensure you’re making a good first impression. Clean up the front area including the yard, front door, porch and garage door. Change the lights on the front of the house, and if necessary, reset the walkway stone.
- Clean the interior beyond your standards. Even if they are impeccable, rent an industrial carpet cleaner or hire a professional cleaning service. Brighten the interior ambience with light fixture updates, as new lighting is one of the most inexpensive and noticeable improvements you can make prior to listing.
- Fix leaky faucets and make sure the water pressure is strong in both the kitchen and bathrooms.
- If necessary, a great way to improve the appearance of your home is to paint. Use only neutral colors that can easily lend themselves to different décor and styles of furniture.
Don’t reject low offers; negotiate
- Don’t dismiss lower-than-expected offers. Instead, consider buyer incentives that help you meet your asking price. Offer to pay the buyer’s closing costs, moving costs or loan origination fee. These can help the buyer with upfront costs. As well, you may consider offering a limited home warranty that covers HVAC systems and some appliances for a definitive period of time.
- Be careful of purchase offers that are contingent on the buyer selling their home first. Their home may be in a softer market than yours and you could be in for a long wait. Be sure that the purchase agreement includes a contingency-release clause. This way you’ll be able to sell if another buyer comes along.
- The purchase price is just part of the deal. Anything that makes your property stand apart from the competition will give it an edge in a buyer’s market.