PRICING YOUR HOME TO SELL
How to price to sell and still make a profit
The most important part about selling a house is the asking price, which would affect how much profit you make and how long it would take to sell the house. Your real estate agent’s knowledge of the overall market and what’s selling – or not selling – will be invaluable in helping you determine the price. The objective is to find a price that the market will bear but won’t leave money on the table.
Here are some important things to consider:
Time is never on your side in real estate, it is also one of the biggest factors as to whether you make a profit or not. Studies show that the longer a house stays on the market, the less likely it is to be sold for the original asking price. Therefore if your goal is to make a profit, then think about a price that will encourage buyer activity.
Value vs. Cost
Pricing your home to sell in a timely fashion requires some objectivity. It’s important that you not confuse value with cost – in other words, how much you value your home versus what buyers are willing to pay for it. Don’t place too much emphasis on home improvements when calculating your price, because buyers may not share your taste. For instance, not everyone wants hardwood floors or granite countertops.
Keep it simple.
Because time is of the essence, make it easy for the buyers. Remain flexible on when your agent can schedule showings. Also, avoid putting contingencies on the sale. Though a desirable move-in date makes for a smoother transition between homes, it could cause you to lose the sale altogether.
