Pricing your home for sale appropriately will definitely dictate how much traffic you receive in the first two weeks. Out here, in the Southwest Valley of Metropolitan Phoenix, most homes reasonably priced will be under contract in the first two weeks. No one wants you to leave any money on the table! You do not want to reach too far over market value for your home. If you do, chances are you will sit on the market for quite a while and people are going to wonder what’s wrong with the home.
Pricing Your Home for Sale
Many time sellers will think of a major upgrade they did and want dollar for dollar on that investment. Sometimes this will be the case and often times it is not. For example, a homeowner spends say $50,000 on a pool and wants to get all of that money back. The sad truth is they are only going to get a fraction of that money back. Rather, this is why pricing your home for sale appropriately will get you the most amount of money and be on the market for a much shorter period of time.
The majority of buyers have to qualify for a home loan to purchase. This means that they are required to have an appraisal done on your property. The appraiser will take into consideration recent home sales that have closed in the area and similar floor plans and upgrades. The condition of those homes will also be compared to the subject property. The appraisers are suppose to compare apples to apples as far as homes are concerned. Therefore, if there are not enough apples, unfortunately, you will get compared to an orange. In our example of the pool, they will look at how much the pool homes sold for. One may get a little extra money if it’s highly upgraded but nowhere near dollar for dollar.
This is why pricing is so important. You may receive an offer for $20,000 above market value. Lets say the appraiser came in $20,000 under the contract price. That means the negotiations start all over again. Consequently, the buyer can’t purchase the home unless he pays that difference in cash. Another option is, the purchase price is lowered to the appraised value, or somewhere in the middle with the buyer paying the difference in cash. In some cases with certain loans the appraisal stays with the home for up to six months.
Choosing the Right Realtor
Utilizing an experienced Realtor to help you hone in on pricing your home for sale is crucial. In addition, being tech savvy in marketing as well having numerous sales in the area is important. Make sure your home is ready and prepared to sell. The first few days on the market are the most important and they must drive traffic to the home. To find out what your home may sell for in this market, contact the Ewen Real Estate Team today!