Am I Priced to Sell?

What affects your asking price?

  • Urgency.  How quickly must you sell?
  • Competition.  How many homes are available in your price category and area?
  • Available Financing.  Does your home come with an assumable loan that is below today’s current interest rates? What financing alternatives are available for your home and area?
  • Competitive Market Analysis.  Do you know what similar homes in the area sold for within the 
last six months?

 

What doesn’t affect your asking price?

  • Original Cost. Your price is determined by today’s market.
  • Investment in Improvements.  Potential buyers will evaluate your home and may include the 
cost to remove or replace in their offer.
  • The cost to build your home today.  A replacement value is determined for insurance purposes 
only.
  • Personal attachment.  Prudent buyers purchase based on their emotions, not yours.
  • Neighbor’s Claims.  Don’t listen to what your neighbors tells you is fair market value for your 
home. Other homes in your neighborhood may not be as similar as you think. Also, the terms accepted by both the buyer and the seller will greatly affect the sale price.
  • Expenses. What are your selling costs?

 

What happens if it is over priced fair market value?

  • It will not attract as many buyers.
  • It will take longer to sell.
  • It will make the competing properties look good.
  • You will lose valuable time and marketing dollars.
  • Can cause appraisal problems, resulting in renegotiation.
  • End up selling below market due to a negative perception.
  • You may miss out buying your next dream home.