When pricing your property, you may consider the price you originally paid, add a substantial markup and presume you’re done. This would be a grave mistake; one that could wind up costing you thousands or end in no sale at all. In order to price your property to sell there are many things that should be considered:
Obtain A CMA (Comparative Market Analysis):
You should obtain a CMA from an
experienced local professional to give you an idea of what to expect in the current market. A CMA details the prices of similar properties recently sold, on-the-market homes as well as homes that simply did not sell in the Fredericksburg, TX area.
Be wary of agents attempting to “buy” your listing. An agent practicing this technique will often sweet-talk you with their elevated price recommendation waiting only a few weeks to insist
on a price reduction. Be mindful: most showing activity occurs within the first few weeks of a listing. Putting your best foot forward initially will offer you the best chances of a happy and timely result. A property on the market for extended periods become less saleable. People begin to wonder if there are significant defects with the property or whether the seller is truly motivated.
Some agents will suggest "under-pricing" your home hoping to start bidding wars amongst opportunistic buyers. While this technique may be appropriate in select circumstances and under certain difficult market conditions, it is often a wiser decision to market your property at an appropriate price from day one.
Calculate the Price per Square Foot
The average sold price per square foot (or average price per acre) of homes or ranches in your area can be considerable help in determining a proper listing price for your property. However, it is not recommended you rely solely on this tidbit of information as properties never fully compare "apples to apples".
Evaluate Market Trends
How quickly are properties selling in the Fredericksburg area? Are prices increasing or decreasing? What is the current market inventory? Are you in prime selling season (typically during spring) or attempting to sell in the drooping winter season? How many offers are sellers typically receiving once on the market? These are only a few of many questions that I can help answer.
What Major or Minor Problems Exist Within Your Property?
If you’re in a sellers market you may not need to worry about fixing most problems in your house. Buyers are much more open to problematic homes when they are having a tough time finding one in the first place. However, if you’re in a buyers market it would be wise to fix as many problems in the house as you’re financial able to.
Either way, a home with problems will not generate as much value as a home in almost perfect condition (no home is perfect!). An advisable solution would be to evaluate the potential cost of repairs. Determine whether these costs could be recouped during the sale of your property. It is certainly worthwhile to discuss these issues with me and other professionals.
Jazz Up the Deal
Often, buyers come to the table with terms that some sellers are not open to accept. Some include quick sales, lease-options, or asking that closing costs be paid by the seller. If you are motivated to sell offer something up front to attract buyers that may be interested in such terms.
Reaching a listing price can be tricky; however, using reliable information with personal feelings aside, you can reach an acceptable agreement.
