Pricing Your Home to Sell
These days, you might think pricing your home to sell is easier than ever. Unfortunately, the data that’s out there is only an estimate and homes that are overpriced stay on the market longer. That’s why it’s important that you understand the impact of Days on the Market when pricing your home to sell.
Most home owners don’t know how negatively Days on the Market impacts their final home selling price. Our clients love examples so allow me to show you what I mean.
A homeowner decides they want their home listed for $279,000. The Realtor has compared your home to others in the area (using comparable homes aka “comps”) and done an in-person valuation. The Realtor feels they can sell the home for $250,000 within 30 days. The homeowner insists on listing the home at $279,000.
30 days passes. The house does not sell. Now Buyers see that the house has been on the market for over 30 days (Days on Market – DOM). That’s a Buying Signal to offer much below asking price. It puts the Seller at a disadvantage. The homeowners end up selling for $240,000.
Although there are no guarantees in life, if the home had been listed at $250,000 or as a compromise, $260,000, it’s very likely it would have sold for closer to $250,000.
Be SURE when you’re interviewing your Realtor candidates, you have a conversation about Days on Market and its impact on your home’s pricing.
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Receive a detailed property report with a general estimate of your home’s value based on local activity. Then, receive ongoing alerts with any changes to the area or your home’s value as a result of homes coming on the market or selling. It’s a great way to keep your finger on the pulse of the market.
Tom was recommended by a friend and we were very pleased. When we met the first time he had already researched the sales of similar homes for the area and the first thing he asked us was what we thought was important to know about our house. Then he walked us through the process of selling our...
July 24, 2019