There are a lot of things that come into play and have to be done when selling a house. If you need to sell a house fast then there can be even more to do in a shorter amount of time. One of the biggest things in getting your house to sell quickly is to price it correctly. Price it to high and you won’t have any interest in the property and may end up holding on to it longer than you want to. This short article will give you some good tips on properly pricing your house for a fast sale.
In a previous article “Tips And Tricks To Sell Your House Fast ” we covered a lot of the “physical” things that have to be done to sell your house fast like cleaning and properly staging the house. Here is the thing, no matter how nice you make your house, if it’s not priced properly, it’s not going to sell. Think about it, why would a buyer pay 5, 10, 15 thousand or more for a house when they can get one that is comparable or maybe even nicer for less? Would you?
It’s Important To Set The Price Right From The Start
Many homeowners may think that if they set the price high from the start that they can always lower it if they don’t get any interest. This may well be a very bad strategy, which was covered in this article:
Hensal said it is important to price a home properly from the beginning. If a seller is forced to drop the price, “it’s only human nature to wonder what’s wrong,” Hensal of the potential buyer’s perspective.
“You’re just selling your competition if it’s priced too high,” she said. “You’re better off pricing it properly right out of the gate.”
Cummings-Waldorf added: “It’s like anything. I may want to sell my car for $30,000, but if it’s not worth $30,000, I’m not going to get $30,000.”
Pricing a home too high is the “kiss of death” in real estate, said Greenwich Realtor Jane Brash of Coldwell Banker.
“You want the momentum from the very get-go,” she said.
Otherwise, Brash said, it’s a downward spiral where buyers are turned off by the price while the home languishes on the market and, eventually, buyers start assuming something’s wrong with the property, causing it to linger even longer.
It’s a good point that you are actually helping to sell other people’s houses by pricing yours to high from the start, as well as the fact that buyers will wonder what is wrong with your house if you drop the price. Another problem could be that buyers may wonder what is wrong with the property if it has been on the market for some time and hasn’t sold – all due to it being over priced.
Pricing Your House To Sell Fast
There is a lot to consider when setting the price of your property. This is one reason why realtors get paid what they do. If you are using a realtor then you are putting your trust in them. We would suggest that you do some investigating on your own and don’t just take their word for it. If you are selling your property on your own or “FSBO” (for sale by owner), then you are going to have to do some extensive research. Thankfully the internet is here now and you can do most of your research from there.
So where do you start finding the right price for your house? Check this out from The Balance which has some great info on how to get started:
Pull Comparable Listings and Sales
- Look at every similar home that was or is listed in the same neighborhood over the past three months. Appraisers do not use comps older than 3 months.
- The list should contain homes within a 1/4 mile to a 1/2 mile and no further, unless there are only a handful of comps in the general vicinity or the property is rural.
- Pay attention to neighborhood dividing lines and physical barriers such as major streets, freeways or railroads, and do not compare inventory from the “other side of the tracks.” Where I live in the Land Park neighborhood of Sacramento, for example, identical homes across the street from each other can vary by $100,000. Perceptions and desirability have value.
- Compare similar square footage, within a 10% variance of up or down from the subject property, if possible.
- Similar ages. One neighborhood might consist of homes built in the 1950s next door to another ring of construction from the 1980s. Values between the two will differ. Compare apples to apples.
Superb advice on setting the price of your property. This is how we always start at determining the value of a property. If you deviate to much from those rules above you will get the pricing of your property wrong. Sometimes it will be necessary to deviate from those rules a little because you may not find a property like yours within a half mile of your residence. It’s important to remember that if you have to deviate from any of the above rules, then the others become that much more important. It’s also important to note that when comparing apples to apples that you also take into consideration whether or not a property has updated kitchens, bathrooms or any other part of the house.
Summing It Up
Don’t make the mistake thinking that you can over price the property, only to lower it later down the road when it doesn’t sell. Over priced properties that sit on the market only make buyers wonder what’s wrong with the property. Next, take your time and do your homework, make sure you use accurate comparables, properties very similar to your house for setting the price.
Don’t forget, if you are in need of selling your house fast, we buy houses fast in any condition throughout the Metro Atlanta area. Learn more by visiting our site at MandichPropertyGroup.com.