Home Seller’s Book

More buyers and Realtors will view your home and become excited about it because it is priced right. This excitement generates interest and most importantly offers.

If a home is priced right, the excitement of the market produces a higher sales price. Buyers are less likely to make low offers out of fear of losing a good home at a fair price. Hopefully there will be multiple offers when the home is priced right. With multiple offers, you can choose the highest sales price with the strongest buyer instead of compromising or having to offer discounts or pay for the buyer’s closing costs.

Less time on the market means fewer showings and adjustments to your schedule and lifestyle.

When a home is first put on the market, it generates excitement among local Realtors. If Realtors are excited about a home’s price and condition, they make special efforts to show it to their buyers.

Buyers view numerous homes prior to making a purchase. If your home is competitive in style, features, condition and location with other homes in a certain price range, the right buyers see it and they will make an offer.

It is highly unlikely that a buyer will pay more for your home than a previous buyer paid for a comparable property with similar amenities and features. How do we know what a buyer may be willing to pay for your home? By looking at the SOLD Prices of comparable homes. The prices of active listings or listings which did not sell should not be used as your pricing gauge.

The excitement is highest during the first few weeks a home is on the market. In essence, there is a window of opportunity where Realtors and Buyers in the market will be excited to see your “new” listing. If your home is overpriced during this critical window, it is difficult to generate that excitement again.

The perception once a home has been on the market for a period of time is that no one wants it. It becomes “shopworn” and buyers ask themselves “what’s wrong with this home?” Just like merchandise on a rack at a department store which has been looked over, buyers expect to pay less.

Buyers are smart and will always pick the best home for the money. Homes priced above current market value do not sell. If you price your home above the competition, no amount of marketing nor time will sell it.

Starting out high to “test the market” and then periodically reducing the price causes a property to become stale. By the time a home is finally reduced to the current market value it may be too aged to attract a full-price offer. Have you ever asked how long a property has been on the market? If it had been quite some time, what conclusion did you draw?

Of course, the greatest risk of overpricing a home is that after months of showings, inconvenience and stress, the home does not sell. Most qualified and motivated buyers are smart and will not pay more for a home than it’s current market value. Lenders and appraisers make certain of this.

An owner’s need for money does not increase the value of the house. Your need to pay off credit cards, cover a home equity line of credit or even pay for a college education will not influence what a buyer is willing to pay for your home.

Improvements should be made for your enjoyment, not just for resale. You cannot add an item to your home, use it, and then expect the buyer to pay full price for it. Maintenance and repairs are a normal part of living in a home. Replacing a roof or putting in new carpet simply returns a home to normal expectations.

Appraisals, along with your good credit, are tools used by lenders to insure that there is enough security to give you a loan. Refinance appraisals often vary considerably from the price a buyer is willing to pay. Thus refinance appraisals are not an accurate way to  competitively price your home.

Home prices are determined by location, condition, supply and demand. The exact same home is going to sell for more in Beverly Hills than in Provo. Because you may be moving to a higher priced area does not make your current home worth more.

Five of the six Accurate Pricing Principles are typically out of a seller’s control. However the condition of your home is entirely up to you. Your home will be competing with other properties for sale. The homes that are in top condition sell for top dollar. Just as you would wash and wax a car prior to selling it, your home should be in “showroom” condition when we begin marketing.

Please review our Staging suggestions in the previous pages to learn how to properly prepare your home for sale.

It is highly unlikely that a buyer will pay more for your property than they would pay for a comparable property with similar amenities and features. How do we know what a buyer may be willing to pay for your home? By analyzing the SOLD homes and prices of comparable homes including those in your area and neighborhood.

There is an old real estate adage that the three most important features of a property are “Location, Location, Location!” Buyers are willing to pay vastly different prices for very similar homes depending on the location.

Supply and Demand is the number of available homes compared to the number of active buyers. A low supply of homes with high demand will increase the value of homes; a low demand or an oversupply of homes will lower the values.

Current interest rates, the local economy and the national economy also affect the value of your home and the real estate market. Real estate values decrease during times of recession and generally increase when the economy is strong.

Your home will be competing for a buyer against other homes in the same geographical area and price range. Normally buyers select just ONE home.

When a buyer falls in love with your home and is convinced that your home is THE BEST HOME for the money, then it will sell!

If a buyer does NOT fall in love with your home NOR are they convinced that your home is the best home for the money, it will not sell.