Pricing Your Home
A property priced at current Market Value will attract a lot more buyers than a home priced above the comparable properties. Correct pricing will also attract a greater number of potential buyers and increase your opportunity for a faster sale. It is very important to price a home correctly, right from the beginning as this is the time it will have peak interest. Once a property hits the MLS, it is imediately delivered to every agent in town's buyer database. This is when all the local real estate agents and prospective buyers be clicking on the link to view the property and deciding if this is something that they want to take a look at. Therefore, the highest chance to sell a property is when it first hits the market.
The Importance of Proper Pricing
Quicker sale
Exposure to more prospective buyers
Increases real estate agent response
Generates more advertising/sign calls
Attracts higher offers or multiple bids
More money in the seller's pocket
Avoids being "stale"
What really matters is how your home stacks up against the others currently offered for sale and recently sold in your neighborhood. Today's buyers are very savvy of today's market and will be comparing to other sales.
Common Reasons for Overpricing
Over-improvement
Need
Purchasing in higher-priced area
Original purchase price too high
Lack of factual data
Bargaining room
Move isn't necessary
Assessed value
Emotional attachment
Opinion of family and neighbors
Dangers of Overpricing
Most of the activity on your home will occur in the first few weeks. Pricing your property properly will create immediate urgency in the minds of Mammoth agents and buyers.
Buyers who have seen most available homes in their price range are waiting for the "right house" to hit the market. That's why if a house is priced right, it will sell quickly. The buyers have been there waiting for it and will respond to the new listing better
Don't start with a high price and the assumption that you can reduce it later. By the time you decide to lower the price, it may be too late, as interest will have already slowed and the property will become a stale listing sitting on the marekt for much longer than necessary.
A major cause for concern is appraisal problems; overpricing can lead to the buyer's loan not going through which will then have your home back on the market again.
Even if your home is nicer than other homes in the same area, your house won't be picked for viewing if you set the price too high.
Buyers and agents become aware of the long exposure period and often are hesitant to make an offer because they fear something is wrong with the property if it has been sitting for too long.
Attracting the wrong buyers.
Fewer potentially qualified buyers will respond leaving
You might help sell similar homes that are priced lower.
You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.
The Role of a Real Estate Agent in Pricing
I will analize the market and will provide you with a comparative market analysis (CMA), a comparison of the prices of recently sold properties that are similar in location, upgrades, views, and amenities.
There is no "exact price" for your property. We will work together to come up with what works best for your needs.
I don't tell you what I think your home is "worth". Only a qualified real estate appraiser can determine your exact current market value but I can provide you will all the information on recent comps to get the general idea.
The market determines value…together we can determine the price.
An agent has NO control over the market, only the marketing plan. Never select an agent based on price alone. You will want make sure you have a top agent in the area who is skilled with the entire selling process as many things can come up or you can lose out on thousands by using an agent who doesn't know how to price and market your home.
If you are interested in selling your Mammoth Lakes property, contact us today for a customized market analysis.
