The single biggest issue on most home sellers’ minds when selling their homes is how to achieve the highest sale price.
And yet most homeowners feel disadvantaged and ill-equipped to meet this goal. Market factors can cause large swings affecting pricing. Also, the skill of the person responsible for guiding you through this process can determine what your home will sell for.


However, pricing correctly doesn’t have to be as difficult or intimidating as you might expect. I will present you with a detailed market analysis and evaluate your home. Consequently, we will establish the best listing price that will unable you to sell your home for the top dollar and in your time frame.

The role of the market conditions in pricing
  • Are we in a buyer’s or seller’s market?
  • Are prices trending up or down?
  • How will either impact my plans?
  • How many homes like mine are currently for sale and what is their impact on the sale of my home?




Just how much are buyers prepared to pay for a home like ours?

My Comparative Market Analysis (CMA) considers recently sold, comparable homes as well as homes with which your home will be competing. It will help us determine the optimum asking price for your property.

We can’t control market conditions, competition, location or size. Our focus will be on factors we can control to get maximum value:
  • Price
  • Condition
  • Marketing for maximum exposure

Your Home's Optimum Time-On-Market

General definitions of market value usually say that it is the price a home should sell for when it has been on the market for anywhere from three weeks to two months.

However, if you want top dollar for your home, experience shows that you should try to get and accept a solid offer sometime during the second to fourth weeks that it's on the market. It is during this three-week "window" that your home will enjoy maximum market exposure and buyer interest.

Beyond four weeks your home will increasingly be viewed as a "stale" listing -- i.e. as a commodity with a history of being rejected by other buyers. Consequently, there will be less interest, less showings, less offers and less likelihood that you'll get your asking price.
This is why it is crucial that your home be priced correctly during the three-week window.

Pricing Pyramid

A property priced at market value will attract more buyers than a home priced above market value. Consider that a competitively priced property will also attract a greater number of potential buyers and increase your opportunity for a quick sale. 

How you price your home will directly impact upon how many buyers, showings and offers you attract, and ultimately to how easily it sells. At the pyramid's center is the fair market value at which a reasonable percentage of buyers would view and purchase your home. When you underprice your home you'll attract a greater percentage of buyers, and when you overprice it you'll attract a lesser percentage of buyers.

The Consequences of Overpricing
The strategy of overpricing your property -- knowing that you can reduce the price later -- might make sense at first glance. However, it seldom works. In fact, sellers who overprice their properties -- even just 10% above market value -- often end up getting less than they would if they had priced it properly from the start.

Here is why:

•         A high price on your property makes other comparable properties more attractive, so you actually help to sell your competition.
•         Fewer buyers will respond to ads, fewer agents will show your property to their buyer clients, and you'll get fewer serious offers.
•         Inflated prices often lead to mortgage rejections and critical lost time waiting for finance approvals that don't go through.
•         Reducing the price after buyers have begun to perceive your home as a "stale" listing will not generate nearly as much interest as if you'd priced it properly from the start.

This is why rightly pricing your property to coincide with its window of maximum market exposure and buyer interest is so important.


Pricing Your Property Is a Balancing Act
On the one hand, you want to set a listing price that maximizes interest among qualified, motivated buyers who will be willing to pay top dollar for your property. Indeed, such buyers will ultimately determine your property's top market value.

On the other hand, you do not want to set a listing price that attracts a lot of buyer prospects, but sets the stage for negotiations that result in your getting less than what your property is really worth.

Your Home's Actual Market Value

In a perfect world, your home's value would be everything you think and need it to be. However, simply put, your home's value is not determined by you, but by what the market is willing to pay for it at a given time.

These days, the "market" increasingly refers to home buyers who have researched property values over the Internet for months, have already viewed a number of homes, and are not under any undue pressure to buy.

You can determine a value range for your home by looking at the recent sale prices and current asking prices of homes similar to yours in your area. That is why I've prepared a Competitive Market Analysis (CMA) that includes a variety of "comparable" homes drawn from the local Multiple Listing Service (MLS).
The Bottom Line: REALISTIC IS STRATEGIC!

On average, serious buyers look at about fifteen properties before they make an offer. Doing so gives them a basis for determining how competitively a property is priced, both in terms of the market generally and what they are looking for specifically.

If you overprice your property you'll usually lose serious buyers even if they otherwise love it. Experience shows that buyers usually do not make what they consider to be realistic offers on overpriced properties because they assume that doing so will just be a waste of time. The overlap between buyer and seller price ranges is depicted below. It will be helpful to keep this diagram in mind when pricing your property.


To request a free consultation call 519-778-0737 or email rad@radkostka.com