NJ Real Estate Services
Franko Realty, LLC
Yes, Franko with a "K"
Pricing Your Home for Sale
The consequences of making the wrong decision are painful. If you price your home too low, you will give away thousands of dollars that could have been in your pocket. Price it too high, and your home will sit unsold for months, developing the reputation of a problem property (everyone will think that there is something wrong with it).
Failure to understand market conditions and properly price your home can cost you thousands of dollars and cause your home not to sell… fouling up all of your plans. Setting the proper asking price for your home is the single biggest factor that will determine the success or failure of your home sale.
Utilizing the latest computer technology and my in-depth knowledge of the market, we will analyze current market conditions in combination with your time requirements to identify the correct price range for your home. You can’t afford any “guesswork” in this critical step!
What Determines Property Values?
The pricing of your home must accurately reflect its condition. The general upkeep and presentation of your home are critical to obtaining the highest value for your home. The nature of the roof, plumbing, carpets, and paint all relate to the condition. Basic rule: If we can smell it…we can’t sell it!
The more financing terms and options you accept, the more potential buyers there will be for your property. The pricing of your home must reflect the terms available. The easier the terms, the more valuable your property becomes. (And this is where my team of professional Affiliates shines by offering a broad, full spectrum of mortgage products and options to both you and all potential buyers!)
Recession, inflation, interest rates, mortgage availability, competition, and the public’s perception of the general economy all make up the market. It may be a buyer’s market or a seller’s market. The pricing of your home must reflect the current nature of the market because we cannot influence the market. We can, however, take advantage of the market.
The pricing of your home must reflect its location. The better the location, the higher the acceptable price. School districts, high or low traffic, and highway accessibility, all need to be considered in determining the value of your home’s location.
Overpricing Your Home
We provide a well-researched computerized market analysis to determine the accurate realistic price your home will bear in today’s marketplace. Many agents will tell the seller what they want to hear and agree to list it at an unrealistically high price to get the listing. Then, after you have the listing for a few weeks, start telling the seller that they need to reduce the price.
The decisions of which agent to list with and what price to ask are two completely separate decisions!
Agents won’t show the property if they feel it is priced too high.
LOWER ADVERTISING RESPONSE
Buyer excitement will be with other properties that offer better value.
LOSS OF INTERESTED BUYERS
The property will seem inferior in amenities to other properties in the same price range that are correctly priced.
CAUSES APPRAISAL PROBLEMS
Appraisers must base their value on what comparable properties have sold for.
HELPS THE COMPETITION
The high price makes the others look like a good deal.
Since a fair-priced offer will be lower than the asking price and may insult the seller, many buyers will just move on to another property.
LOWER NET PROCEEDS
Most of the time an overpriced property will eventually end up selling for less than if it had been properly priced to begin with, not to mention the extra carrying costs.
ATTRACTS THE WRONG PROSPECTS
Serious buyers will feel that they should be getting more for their money.
- What you paid for your property does not affect its value.
- The amount of money you need to get out of the sale of your property does not affect its value.
- What you think it should be worth has no effect on value.
- What another real estate agent says your property is worth does not affect its value.
- An appraisal does not always indicate what your property is worth on the open market.
Proper Pricing of Your Home
The value of your property is determined by what a ready willing and able buyer will pay for it in the open market, which will be based upon the value of other recent closed sales. Learn more about the benefits and drawbacks behind why it is important not to overprice or underprice your home!.
EFFICIENT & Convenient SALE
The proper price gets a faster sale, which means you save on mortgage payments, real estate taxes, insurance, and other carrying costs. It takes a lot of time and energy to prepare your home for showings, keep the property clean, make arrangements for children and pets, and generally alter your lifestyle. Proper pricing shortens the market time
When salespeople are excited about a property and its price, they make special efforts to contact all their potential buyers and show the property whenever possible.
When a property is priced right, buyers are much less likely to make a low offer, for fear of losing out on a great value.
EXPOSURE TO MORE PROSPECTS
Pricing at market value will open your home up to more people who can afford it
BETTER ADVERTISING RESPONSE
Buyer inquiry calls are more readily converted into showing appointments when the price is not a deterrent.
HIGHER SELLER PROFIT
When a property is priced right, the excitement of the market produces a higher sales price in.