Market determines price.
It’s true. The Market always determines the price a buyer pays for a home. Not your Realtor. Not you, the seller. And not your neighbor; unless your neighbor just SOLD his house. And then, you could compare his home to your home, and make a guess about how much your home might sell for.
Now, you might say, “I need to price my home at a specific price. Because I’m going to travel around the world! And I need a specific amount of money to do that.”
“Good for you!” I’d cheer. “I’ve always wanted to travel around the world with pockets full of cash. But…we need to talk.”
You’ve heard that old adage, Location, location, location, right?
Let’s start with this.
LOCATION is the single most important factor in determining the value of your property.
And PRICING your home properly from the start is the deciding factor on how long it will take to sell. Right price equals quick sale. Over-priced equals no takers, lots of price reductions, low-ball offers, or no sale at all. Which brings me to–
“I know, I know…you’re going to travel around the world, and you’ll need a specific amount of money. Stick with me here…”
The CONDITION of your property will affect its price and how quickly it sells. Prospective buyers often make purchases based on their emotions. Remember: you only get one chance to make a good first impression.
“My house is AWESOME! It’s in great condition!” you say.
“And I couldn’t agree more, but…”
About prospective buyers: these crafty, high-tech house-hunters are very savvy today. They are going to compare your property—both its condition and its price—to other listings, your COMPETITION, in and around your neighborhood.
One more thing: TIMING is everything. The first 30 days your property is listed (for sale) is our window of opportunity—when buyers are most likely to preview your house and make offers. So, we’ll need to work together on a pricing and marketing strategy that takes advantage of that window of time.
“Do you know what happens after that window closes?”
“No…What?” you wonder out loud.
“Your house becomes stale, less fresh on the market. And less awesome to prospective buyers.”
“I did not realize that,” you furrow your brow in deep thought.
So, let’s review.
The Market, your home’s location, condition, and competition, always determines the price a buyer pays for a home. Not me, your Realtor. Not you, the seller. And not your neighbors, or your co-worker (unless your co-worker is The Market). And pricing (your asking price) will affect the time it takes to sell your home.
Puffing out your chest now with a newfound confidence, you say: “Okay, so, (1) if my house is priced right, and (2) based on its location, condition, and the competition—the prices of my neighbors’ houses, and (3) it shows well to prospective buyers, and (4) we work together on a marketing strategy that gets those buyers in here during the first few weeks, when I’m most likely to get offers, I can anticipate a timely sale?”
“Yep. That was a very long sentence; but, I couldn’t have said it better myself.”