There are more than 5 key factors that influence the sale of your home and the order is not as important as considering all of them when you are selling and pricing a home.
You have all heard the most important factor in selling a home is location, location, location, but there are four others to consider.
- Home Condition
- Market Conditions
- The Realtor
The location of a home cannot be changed. The better the location such as a quiet cul-de-sac, backing on to a greenbelt, or a view are more generally considered more desirable. Alternatively, a busy street, nearby power lines, proximity to a commercial or retail business or even too close to a school are often considered less desirable. It is important that you recognize the location and price and market your home accordingly.
Pricing your home correctly is critical to the sale. The homeowner wants to sell their house for as much money as possible, but if your asking price is too high your house will only help sell other houses in your area. There are at least three negative outcomes you can expect from overpricing a property:
a. The time your home sits on the market will increase, making buyers think you are more likely to accept a lower offer than the home’s fair market value.
b. You will be missing out on buyers who should be looking at your house, but because it is out their price range they will miss it. This often happens when you price outside of a range such as choosing $ 765,000 instead of $ 749,000.
c. You receive low offers or no offers at all. A higher asking price does not always equal a higher sales price.
The more you overprice a property, the more likely you are to eventually sell it at a price lower than it is
So how should you price a home? Price your house to attract appropriate buyers for your neighborhood and location. The more buyers that come to see your home, the more they will compete for your house, which will drive your sales price up. Competition will result in receiving offers over and above your asking price. Don’t let Realtor buy your listing by agreeing to sell it for more than it’s worth as it will only be a matter of time before they are back suggesting a price reduction.
Buyers will pay more for a home that is clean, has great curb appeal and is in good condition. Few people can see past the purple paint and worn carpet and even fewer can get past the clutter. Most people find it hard to visualize what your home will look like as theirs so if you are not taking the necessary steps to stage your home to appeal to the widest number of buyers you will simply have to have more buyers come through until one can see them selves living in your home.
4. The MARKET
The real estate market is always in one of three types of markets.
A. Seller’s market where there is low inventory and more buyers which, in turn, drives selling prices up.
B. Normal stable market where there is an equal number of buyers in proportion to the number of homes for
sale. The result is home prices remain stable.
C. Buyer’s market where there are more homes for sale than buyers who want to buy. This causes home prices
Knowing the market conditions will help you price your home effectively and know what to expect.
5. The Realtor You Choose
Depending on where you live there are more Realtors than there are lawyers so sifting through them to find the right one can take time. I think it is fair to say any Realtor you contact will eagerly tell you they are the right Realtor to list your house for sale . But there is more to marketing a home than simply putting it on the MLS and if don’t interview a number of Realtors before choosing one you are definitely limiting the exposure of your home. Here are a few things to consider
- Their experience at marketing houses in your price range and in your area.
- Their presence on the internet through a web site and/or blog.
- Their demonstrated knowledge of home prices in your area.
- Their marketing plan for your home.
- Their track record.
The reason I researched and wrote this post is because it forms the basis for of how I help Realtors in their marketing. We try to cover off all of these areas in their listing presentation and use the analysis to formulate a marketing plan for a home. This information is designed to help both Realtors and Sellers and gives Buyers insight into what is happening on the other side. If you have anything to add or a comment I would like to hear from you.