By Terrylynn Fisher, Broker Associate
With Interest rates at about 5.5% and rising, will there be any buyers who want to buy? Will this change pricing? Will your home sell? What things give you a better opportunity for a quicker sale?
Ultimately, when a real estate agent is determining how to price your home for sale, they are factoring in three things: what are the current market conditions; how does your listing compare to others in the area (condition, amenities); how long they anticipate the property to sell based on the previous two factors.
Pricing is your best negotiation tool. What your neighbor sold for may no longer be market value for your home. Pricing strategy may mean you price at or under today’s market, to obtain the best offer more quickly. You can depend on your Realtor® to give you the market data that will help you decide what your start price should be. Given what you paid for the home and what appreciation you have seen in the past few years, most homes are up 20-40% over what you paid for them. Don’t look back, look forward.
Buyers still buying?! They are buying because they would like to lock in the interest rates before they go higher still. They are buying because their dream of home ownership is still possible in most cases. They buy because they are tired of renting and rents are skyrocketing. Even at these interest rates, they want to put their money into their equity vs, the landlords equity.
So, selling may be different, but not impossible, and a good pricing and marketing strategy is more important than ever. Here are four pricing strategies that are proven to help.
Set your price low to set yourself apart from the crowd. A buyer’s market is where the supply of homes outnumbers the number of buyers looking for homes. If it is too low, you will get the price bid up by multiple buyers. If it is not, you will know what the market value is based on your offer. Defined, market value is what a willing buyer will pay.
Choose a time sensitive price. What is the slow season, is school about to start or end, is it rainy season when fewer folks are out and about? The difference between peak and downtime is sometimes as much as 5-20%. Price to sell quickly so that you do not miss the season.
Set your price to maximize online views. Over half of buyers found their future home online. Capture more buyers with this simple strategy. Online real estate sites typically set their prices in ranges of $25,000 or $50,000 increments. For example, if you price your home at $805,000 you miss the opportunity to have the $700,000 to 800,000 buyers find your home. Price at $800,000 and you capture the buyers above and below that price. You need maximum exposure and one good buyer. Increase your chances by pricing with the round numbers in strategic increments.
Make sure your price accommodates for your condition, location and amenities. You can not change your location, you can improve your amenities and condition. This involves a consultation with a certified staging professional who is trained to give you value added improvements or ideas for increasing value. A proper home staging can increase perception of value for the buyer, improve the flow of the home, and add function and flexibility to that floor plan. Don’t skip this important step.