Real Estate Pricing: This is not Priceline where you just name your own price!
If you’re buying or selling a home an important conversation to have with your agent revolves around your price point. It is important to remember that pricing a home must be grounded in facts and numbers, and free from emotion. This goes for both buyers, who are making offers, and sellers who are determining the value of their home.
Considerations
If you’re the seller, it is important to realize that buyers are willing to pay for items such as location, certain upgrades and features, and square footage. They’re not willing to pay for emotional attachment to items on or throughout your property. Your professional Realtor is going to help you find a price that is in line with comparable home sales in your area and takes into account your home’s physical characteristics. You might feel that your home is worth more based on your attachment to it and the significance it has played in your life, but that attachment must be backed up with physical attributes that drive value. Remember that buyers are willing to pay for certain upgrades, but others might not provide a high return on investment. Your Realtor will know how to price your home based on these criteria and more.
If you’re a buyer, take into consideration the price you’re willing to offer. Everybody wants a deal, but buyers must be realistic and realize this isn’t Priceline! You can’t simply name your own price significantly below market value and comparable home sales in the are and expect to walk away with a deal. Negotiation is certainly part of the home buying process, but it must be done respectfully and realistically.
The effect of comparable home sales
Generally, Realtors will look at active listings and closed sales in a home’s area that have occurred anywhere from the past 90 days to six months ago, depending on volume in the market. The effect of these listings and sales on a property’s value is monumental! Homes with similar square footage, bedrooms, bathrooms, and updates will influence how you should price your home or make your offer. Your real estate professional will be able to show you the comparable homes in your area and help guide you to the listing price or offer price on your home.
Risks
If you’re selling your home and price it too high, you risk staying on the market for an extended amount of time. The longer your home is on the market, the less attractive it could become to potential buyers. Additionally, any potential buyers could expect you to accept a low offer due to its length of time on the market.
If you’re buying and make an unrealistically low offer you risk being rejected completely and having to move on to a new property. It is important to know the value of the home you’re looking at and communicate with your Realtor regarding the price you’re willing to pay and if it is a good match for your abilities and requirements. As part of your home buying journey, it is important to get pre-approved for your mortgage. This will allow you to look at homes you can make realistic offers on and will strengthen your offer.
Joseph Crawford & Company has many years of experience working in the local market and can assist both buyers and sellers in determining the true value of a home and getting the best price possible! As a full service agent, Joseph can also assist you in obtaining your mortgage pre-approval. To learn more about how Joseph Crawford and his team can assist you call him today at 561-676-2680.
To find out what your home is worth in our current local market, click here to request a customized and free home evaluation report.
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