In real estate, price determines whether or not, and how fast, a property will sell. It’s important to get it right the first time! Many times, sellers will price their property high, to “test” the market. They rationalize that they can always lower the price if it doesn’t sell within a few months. The danger is that the overpriced property will sit on the market too long. The listing becomes “stale”, and potential buyers may wonder why the property isn’t selling, wondering what is “wrong” with it. The best strategy is to price the property at a fair market value right off the bat!
What factors are considered in pricing your property? A real estate agent uses a “Comparative Market Analysis” to recommend a price for your home or land. They’ll look at similar properties that have sold within the past few months, and make adjustments according to factors such as square footage, acreage, neighborhood, age and condition of your house. An experienced agent has the advantage of being familiar with the comparative properties – – and can make adjustments according to considerations such as the level of finish inside a home (e.g. type of flooring, cabinets, renovations).
Market conditions impact the ideal price of property as well. Supply and demand dictate how quickly something will sell. If there is an abundance of comparable properties on the market in a given price range, a more aggressive pricing strategy is necessary for your property to gain notice. So, in addition to evaluating properties that have recently sold, it is important to look at what is currently for sale in your price range.
The time of year also affects your pricing strategy. Spring is generally considered the best time to sell, as families are planning moves over the summer while school is out. Around Lake Wylie, spring is also the time when people go out on the lake and start dreaming of owning lakefront property! With more activity from potential buyers, a seller can price their property a bit higher than in winter months, when buyer traffic is generally slower.
While price is important, remember that it isn’t the only factor in selling your home! The condition of your property, the desirability of your location, and the exposure (how many people know your property is for sale) are also critical.
If you’d like assistance in marketing and selling your property, give me a call!