Pricing

Pricing Properly

We will be happy to help you price your property correctly. The goal is to set a competitive price point that will give the best chance for a timely sale. One of the first questions that potential buyers ask about a property is: "How long has it been on the market?" We want the answer to be "for a short time." If this is not the answer, then the buyers feel the right to "low-ball" an offer. The thought is that the property has not generated the excitement in the marketplace that would warrant a close to asking price offer.

In pricing your property, the following are not relevant:

• How much you paid for it
• How much you owe on it
• How much you need to pursue the second half of your goal
• How much personal time and effort you have invested in it
• What is the asking price of comparable properties currently on the market?

The market does not care about these things. If you underpaid when you purchased, should you underprice now? If you have no mortgage, should you price it lower? If your neighbor priced his property $50,000 too high, should you follow suit? Of course, the answer to all of these is - NO.

In pricing your property, the following are of most importance:

• Location - The town, neighborhood and trafic are all factors
• Condition - A well maintained home will always have the edge
• Updates - A home that has been updated is worth more than its non-updated counterpart
• Style - Certain styles command more money than others
• Amenities - Features play a key role in determining value

While all of the above is important, and plays a role in determining value, the most important factor is comparable sales. We begin with properties of similar age, size, room count and amenities to assess a begininng value. The items above are then factored in to adjust the pricing relative to these sales. Keep in mind that the comparable sales that need to be considered are those that have closed in the last six months. These are what an appraiser will use, so they are what we should use. Of course, if a very similar property closed eight months ago, it should be considered as well.

As you probably know, in order to place an accurate value on your property we should have a personal visit to see exactly what you are offering for sale. In the meantime, if you would like a general idea of value, use the form below to start the process. This will be just a starting point relative to pricing.