Timing is extremely important in the real estate market.
A property attracts the most activity from the real estate community and potential buyers when it is first listed. Therefore, it has the greatest opportunity to sell when it is new on the market. The best chance for selling your property is within the first seven weeks. Studies show that the longer a property stays on the market, the less the seller will net.
It is very important to price your property at a competitive market value at the signing of the listing agreement. The market is so competitive that even overpricing by a few thousand dollars could mean your house will not sell. Interestingly, your first offer is usually your best offer.
The graph above illustrates the importance of placing your property on the market at a realistic price from the very beginning. Don’t make the mistake of setting the price of your home too high at the beginning thinking you can reduce it later. You can reduce it later, and you will also reduce the net proceeds of the sale.
Determining the price of your home is one of the most challenging, and most important, steps in selling your house. In fact, it’s a balancing act. You don’t want to set a price that’s so high that it discourages showings and serious offers from the very qualified, motivated buyers who would ultimately determine your property’s top market value.
Everyone wants to get top dollar for the sale of their home, but not everyone understands the dangers of pricing and the consequences on your final received price. To price a home properly, it is important to study the local market, research comparable properties and consider current market conditions. This is where the comparative marketing analysis or CMA listing agents will provide during a listing consultation will come in handy. At Catalyst Home Team, we study other homes likes yours that are currently active for sale in Atlanta Georgia, pending sale, and sold within the last 6 months to 1 year. Based on these findings, we have the experience to help you price your home at the right price for netting you the most amount of money in the least amount of time.
The fair market value of your home is not based on…
- What you paid of it.
- What you need to receive on sale.
- What you want to receive on sale.
- What your neighbour says.
- The cost to rebuild the house.
Pricing your home competitively according to the current Atlanta real estate market value will generate the most online & in-person showing activity from agents and buyers. Pricing your property too high out of the gate may make it necessary to drop the price below market value to compete with new, well priced listings. The value of your property is determined by what a BUYER is willing to pay and a SELLER is willing to accept in today’s market. Buyers make their pricing decision based on comparing your property to other property SOLD in your area.
Buyers educate themselves by viewing many homes. They know what is a fair price. If your home is not competitive in value with those they have seen, it will not sell. Depending on the price point, buyers typically look at homes within $25,000 or $50,000 price brackets. If your home is not priced within the correct range, very likely it will not be exposed to its potential or targeted buyers.
Overpricing causes most homes to remain on the market too long. Buyers, aware of a long exposure period, are often hesitant to make an offer because they fear “something is wrong” with the house. Often homes on the market for a long time eventually sell for less than their fair market value.
Your home must be priced within the appropriate range. You must actually “sell” your property three times: First to the agent showing your property, second to a buyer and then to an appraiser. The agent must be enticed by the commission being offered & must feel your home is reasonably priced compared to similar homes for the neighborhood. The buyer is more subjective and compares the amenities & updates of your home to those of other homes in the same price range. The appraiser is more objective and compares age, size and cost-identifiable features in your home against other properties that have sold.
If your home is priced over fair market value it will…
- Attract fewer in person showings, as many will think it is out of their price range
- Make competing properties look good and support their value
- Minimize offers
- Take longer to sell
- Lose market attention and quickly become “old news”
- Cause you to lose money because of wasted time and carrying expenses
- Cause negotiations to stall
- Cause appraisal problems
- End up selling for below market in order to make up for all of the above
If you are thinking about selling your home in Atlanta Georgia, we invite you to contact us for a no charge, no pressure consultation of your real estate goals. We would be happy to put together a market analysis of your home, and share how our proven strategies sell homes for the most amount of money in the least amount of time.