Get The Best Price
Mar 03, 2016
Ready to sell? Want the best price? Start here.
Review Our Comps
Comps, or comparables, are homes in your neighborhood that recently sold or have gone pending, meaning there’s a purchase agreement on the table. These are the most important thing to consider when Team Hardy sets an asking price on your home.
Consider these to be the pulse on local market conditions. We factor in supply vs. demand. Less inventory means we can push the pricing envelope. We’re not currently in a market where you can double your asking price but we’ve been able to utilize our marketing savvy and get great contracts that meet appraisal value and most importantly—close.
Size-up the Competition
Check out the open houses in your neighborhood. You can learn a lot from them and what to do, or not do, to get your property ready for sale.
You need to see, firsthand, where they are and if they have any curb appeal. That will be the real gauge of how to price your home.
Above all, be honest with the agent hosting the open. If you’re working with an agent, let them know. Tell them you’re considering putting your home on the market. More often than not they won’t mind if you walk through or even take some pictures.
Meet the Appraisal
Properties that have sold carry a lot of weight over the assessed price. However, unless the buyer is paying cash or agrees to waive an appraisal contingency your asking price will have to support the agreed-upon sale price or the deal may not close.
The buyer’s appraisal will be important, however, you don’t need to go out and pay for an appraisal. We’ve been pricing homes for a long time and you can rely on us for the information you need to get started.
Not Hip to be Square
In general, it’s okay to consider price/square foot but this calculation shouldn’t be your number one decisive factor because it’s difficult to compare two or more homes on this basis alone.
For example: one home might have a floor plan preferable to the buyers because it is open and makes the house look larger. The other may have chopped up rooms yet both are the same square footage.
Don’t Sell Your Listing to the Highest Bidder
Many realtors will come in proposing a quite glamorous asking price intending to flatter you to win your business. Once they win your business they’ll push hard for a price reduction before the ink is dry on your contract. This tactic is known as “Buying the Listing” and it’s a dangerous trap.
Be wary of liking the agent that came in with the highest estimate and go with the one you trust. We hope that’s Team Hardy but respect your decision either way. It never pays to make someone mad at you, it’s bad for business.
Our marketing strategy has proven time and time again that we move property.
Live in the NOW
The list of irrelevant factors that sellers use to justify asking prices is a long one. If you don’t believe me I invite you to read our Dangers of Overpricing Disclosure.
Here’s just a few that repeatedly make our list:
• The price you paid for your home is irrelevant
• The amount you want to net from the deal is irrelevant
• The price your house may have sold for any other day than today is irrelevant
• The amount you spent on repairs/maintenance is irrelevant
What could be relevant:
The value of a major renovation if your house was substantially upgraded.
No. A new sink doesn’t count.
Live in the now.
~ Garth Algar
Don’t Over or Under Price
Sellers that push way beyond a likely sale price are only hurting themselves. To high of a price will, most likely, lead to a price reduction and if you have to reduce your price when the market is as hot as it is now it looks tainted and buyers will read into it.
Under-pricing can be just as bad.
Deliberately under-pricing a home in an attempt to attract more buyers into a bidding war is also risky. Buyers will come in at the asking price assuming there’s no one else with another offer.
Pricing $10,000 lower is a gamble. You’re betting against yourself that there will be more than one buyer bidding. Instead of the anticipated bidding war you may only get one offer that’s exactly the same as your artificially lowered price.
And Finally, A Numbers Game
Marketing a home is a whole hell-of-a-lot different than selling Red Bull. Retailers love prices that end in 99¢. CostCo loves prices marked at 74¢ because consumers have been trained that that is the lowest price they are going to offer and when they’re sold out, that’s it.
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About The Author
John Hardy of Team Hardy isn't your typical realtor. John's spent 25-years developing brands and marketing strategies in corporate America. He's lead contract negotiations, started mentoring programs and helped business start-ups, which eventually led him to real estate. Why is this important for you? Simple, this diverse background has enabled John to become an extraordinary realtor with the skills, ability, and experience that gives you the extra-advantage you need to market YOUR property. Get John's full-story here.Add Pingback