Sellers
Important Selling Factors #1: Price
A home is ultimately worth what someone is willing to pay for it, not necessarily what a seller wants for it. Everything else beyond that is just an estimate or opinion of value.
Get a Proper Appraisal for Your Home
Your asking price is typically based on a Price Trend Analysis (PTA), and may also be based on an appraisal, both of which represent estimates of the value of your house at a given time and under specific circumstances, using different but related information sources.
As an optional step, you may elect to have a certified appraiser perform an appraisal. When estimating your home's value, they take into account many factors, including square footage, construction type, style & quality, the year the house was built, the design and floor plan, the neighborhood, availability of transportation, local shopping, schools, lot size, topography, view, landscaping, and any additions or updates.
Typically, an appraisal is only valid for one year, so if it takes you over a year to sell, you refinance within a year, or if there are significant changes to the property (repairs, renovations, improvements, updates, etc), you should obtain another appraisal.
Appraisal costs will typically be a few hundred dollars, involving many hours to research and complete, but usually with just an hour or two actually on the premises.
The Rick Burke Difference: The Strategic Marketing Analysis
Rick Burke will perform a strategic marketing analysis (SMA) that explains pricing and the latest in marketing techniques and technologies. We obtain current/recent data for several homes in your area with comparable square footage, land area & characteristics, features and amenities. This correlates your house to other very similar homes that have sold in your area. This is a free service as part of the listing process, providing you with a frame of reference with respect to properly pricing your home.
It's important to note that an agent for a buyer who may be interested in your house would perform a similar PTA for that buyer (most likely using the very same MLS data), and based on its results, would advise their buyer/client as to (a) whether the property appears to be overvalued, undervalued, or appropriately priced, and (b) ranges of values within which offers to purchase might be reasonable, well-received and successful, based on the buyer's own needs and circumstances, on the buyer's and their agent's interpretation of the seller's situation, needs & motivation, and on property status & condition.
The Rick Burke Difference: Determining a Listing Price That Sells
When determining the listing price for your property, I can help you to view your property as buyers (and their agents) would. Regardless of property location, condition or features, you'll want to foster an overall impression in the buyer's mind that your property represents a "good value".
Overpricing tends to discourage many buyers from making any offer at all, because they feel it would be a "waste of time" or "insulting to the seller" to offer what they think the property is really worth. This could easily cost you a sale that may have materialized if the buyer had felt more inclined to "go for it".
Conversely, under-pricing can invite "low ball" offers, since buyers may presume (a) that there may be significant problems associated with the property, such as major repairs needed, infestation, contamination or environmental concerns, neighborhood/location issues, etc., or (b) the seller is highly motivated, possibly even "anxious" or "desperate", and vulnerable to any offer that "gets them out". But worse, under-pricing leaves money on the table that should be in your pocket!
The market is always changing, so it's important that your asking price is based on a recent appraisal and/or a strategic marketing analysis.
I can help you price your house so that (a) it will be attractive to the broadest possible range of ready, willing & able buyers, (b) it will bring offers that closely reflect actual market value, (c) it will be competitive with other similar properties currently on the market, and (d) it will yield the best possible proceeds from the sale.
Avoid Promises That Can't Be Delivered!
As a final note, if you are evaluating more than one real estate firm for listing your property, be aware that you may receive some unexpectedly high "estimates of value" and corresponding "suggested list prices" from overly zealous agents who either (a) don't understand the market and its dynamics, or worse, (b) want to "buy" your listing by leading you to believe that they can get a higher price for you than the competition can.
This latter tactic is intended to get you to "sign on the dotted line", creating a binding & irrevocable listing contract between you and that agent's firm. Then, after weeks or months of little or no interest/activity, you are asked to reduce the price to something closer to the actual market value (where it should have been priced in the first place).
However, this typically means that you would have lost the "window of opportunity" as a new listing on the market; other agents would already have disregarded your "overpriced" property, and would not necessarily be inclined to show it to their buyers.
Unless you're prepared to wait for the market to "catch up" to your elevated price, don't fall into the overpricing trap; while you're waiting, your expenses and mortgage payments continue, and the price of your next house may be escalating beyond your reach.
Next: Factor #2 - Condition >>
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