Pricing your home is a tricky business. Home sellers, of course, want to get top dollar for their home, but they also want to get the property off the market as quickly as possible. I believe in educating my clients about how to set a realistic price for their property. I’d rather be honest with them from the very start. Here are some of the tips I give them.
All of us feel our home is our castle and that it’s one of a kind, so we’d want to price it at a premium. But if we end up pricing it above the average market price for our home category, it is bound to sleep in the market; and the longer a property stays on the market, the more money it loses because buyers will think there’s something wrong with it. So it’s important to know the market price and the days on market to set a realistic price and realistic expectations. If a client wants more money for his property and I can’t get it because it’s too far from the actual value or from the market price, I usually advise him to hold on to it and let the value build up in the equity of the land.
When sellers come to me and ask if they priced their home right, I can immediately give them an answer 90% of the time because I know what the comparables are in my area. If I can’t, then I just show them around so they would know how to adjust the price of their home if needed when an offer comes in. You must keep in mind that, in pricing a property, its true value is what buyers are willing to pay for it. But then, if a seller stages his home properly, then it can have an edge over competitive homes and get the seller a price in the higher end of the market price range for such homes.
In my experience, it is typically FSBO (For Sale By Owner) homes that are priced way too high. Of course, there’s the odd one out that will get an offer right away, but FSBO sellers face two problems: one, they can get sued because they are not properly represented by a real estate agent so they may not be fully aware of the problems that may arise during the sale; and two, they’re leaving money on the table because they will usually take the first offer. If they instead choose to work with a real estate agent, the agent can enlist that price and have it go out to the MLS, which will create multiple offers and ultimately make more money for the seller.
Following these three simple tips should get you the best deal for your home as fast as you want it. Happy selling!
Buying, selling or investing in a home in Calgary? You'd need an area expert who'll listen to your needs and guide you to the best deal. I'll be your guide from A to Z. Contact me now at 403.650-1796 or at firstname.lastname@example.org and let's get the job done fast and the way you want it!
Linda James is a top-producing realtor at RE/MAX Mountain View with over 13 years of experience, and is a member of RE/MAX's Hall of Fame and Platinum clubs, and CREB's Million Dollar Club. Having lived in Calgary all her life, she has in-depth local knowledge. She also has a strong background in construction and business analysis, which she uses to help her clients find the best price points, and links to reliable financiers, real estate lawyers, home inspectors and appraisers. Linda zooms in on her clients' needs and uses her knowledge and network to get them the best deal fast.