How do I determine what price I should ask for my home?
Setting an asking price is tricky. If you ask too much, your house won't sell, but on the other hand, if you ask too little, you are giving away money that rightfully belongs to you. The right price depends on a lot of factors including:
• Time of year
• How quickly you need to sell
• What other homes have sold for
• How quickly homes have sold
• Market Conditions
• What other homes are on the market
• How many buyers are currently looking in your area
• The condition of your home
• The curb appeal of your home
• Your homes' availability for showing
• The type of home
Your REALTOR is trained to use all of these factors in working with you to come up with an appropriate asking price for your home.
Why shouldn't I price my house a little high, since I can always drop the price later
That's a strategy that sounds good – but, in fact, is more likely to result in a lower price. Here's why. The first few weeks a house is on the market is when it will have the most activity. If a house is overpriced, it has to compete with houses at that higher price level, which are almost certainly larger or have newer/more luxurious features.
So the overpriced home is unlikely to attract an offer. Worse yet, those first weeks are when real estate agents preview the house. If it's overpriced, they may not even bother to show it to their buyers. Eventually, the seller will have to drop the price – and may end up with an even lower price because buyers will wonder why the house has been on the market so long and may factor that into their offer.
What are the fees or closing cost associated with selling my property?
Closing cost are the cost of doing business in a real estate transaction and need to be factored into your bottom line. They include expenses like: Escrow fees, title fees, transfer taxes and commissions. Typically speaking 7.5%-8% of the sales price should cover all of the closing cost and includes little padding. Don’t forget to deduct any amount you may have left on your loan or mortgage.
If my house sells in the first month, doesn’t this mean we underpriced it?
No, this shows it was priced perfectly. If it were underpriced, you would have multiple offers in the first several weeks, possibly leading to an above market sale.
What do the number of showings and offers received tell me about my price?
If, during the first month, you are getting drive-bys but people are not actually showing the house, it means that the Realtors think the price is unrealistically high and are showing Buyers other properties where they can get more for their money. You are approximately 12+% above the market. If, after the first few weeks, you are getting only a few showings, it means Buyers are finding nicer homes for the money. You are approximately 6-12% above the market. If you are getting a reasonable number of showings, but no offers, it means you are close but still not in the running. You are approximately 4-6% above the market. If you are getting second showings but buyers are buying something else or giving you only very low offers, you are still 2-4% above the market. Ask your Realtor how many houses in your price range have sold. If your house is priced correctly, according to the National Association of Realtors, you should be receiving an offer for about every 10 showings. After the initial 4 weeks on the market, a correctly priced house in a normal market should be receiving 1-2 showings a week.
What Facts Should a Seller Disclose About the Home?
Everything. The law requires full disclosure. A seller should never try to hide a problem with the property. Sooner or later the buyer will find out and may, unfortunately, come back to the seller, armed with a lawyer. Your REALTOR will have all of the appropriate Disclosure forms for you to complete.
What is "Staging a Home" for Sale?
Think of "staging" as preparing your home to star at a big event. As the star, your home should be dressed in a tuxedo (or ball gown), rather than appearing too casual, as if wearing sweats and a t-shirt.
There are 2 important reasons for this:
1. Buyers automatically "discount" the price if a home is messy, cluttered or, worse yet, dirty. The unspoken assumption is that owners who are careless with the appearance of the home were probably careless about upkeep of the home and its systems. They assume that there may be problems in the future and either make no offer on the property or make a lower price offer.
2. Agents will often put a messy, cluttered home last on the list to show their buyers -- and the buyers may very well buy another home before they get to that messy one.
Your REALTOR can offer you suggestions on getting your home looking its’ very best to increase your chances of getting Top Dollar on a sale.