How to
price your Saratoga property is one of the most important
issues you will face, and will determine, among other
things:
• How quickly your home sells
• How attractive your home will be to buyers
• How you will reach your financial goals regarding
the transactions
Unless there are extenuating circumstances, such as your
property’s being located in a high-risk, undesirable
or unusual area, the listing price of your home will set
the tone for your entire transaction.
That’s why my expertise and knowledge of your local
Saratoga marketplace is so helpful. I will gather statistics
that quantify the prices of comparable homes in your neighborhood:
• That have sold
• That have not
sold
• That are pending
• That currently
are on the market
I will compare aspects of those homes against the unique
features of yours. I will also analyze market conditions,
the availability of mortgage funds, neighborhood reputation
and characteristics, among other considerations, to create
a Competitive Market Analysis (CMA). The CMA provides
objective information that will enable us to make an educated,
informed pricing decision designed to yield a speedy sale
for the most advantageous price possible.
Philosophically speaking put yourself in a potential Saratoga
buyer’s shoes when considering pricing. Buyers’
main considerations will be location, age of property,
its condition and style and of course, price. Thinking
objectively about these matters will help you and I to
determine a price based on fair market value -- what your
house is worth in the current market, not the amount you
or your buyers would like it to be.
Other
key aspects to consider include the following:
How soon do I want to sell my property?
Statistics show the narrower the gap between the asking
price and my estimate of value, the sooner an offer will
come in.
How does my home compare to
others in the area?
As a real estate professional, I have access to details
about current listing and sold properties through the
Multiple Listing Service. You will be able to see how
much competition there is and what effect market conditions
have had in your area. You can then determine your price
by analyzing homes comparable to yours in age, size, condition
and location.
What are buyers willing
to offer?
Buyers are interested in your home’s comparable
worth, not what you might need to get out of the property.
The buyer’s perception of the value of your home
will not be altered by the cost of your next home, your
need to pay off an existing mortgage, or your hope for
a dollar-for-dollar return on home improvements. Remember
that sellers and Realtors© are not appraisers...buyers
are. In the end, it is the buyer's evaluation that matters.
Buyers make their assessments by comparing your property
with others that offer similar features and are in a similar
condition to yours. Is there any harm in overpricing property,
then dropping the price if it doesn’t sell?
Yes. To effectively price your home, you must establish
a solid correlation between the asking price and the fair
market value. A realistic asking price will result in
a fast, lucrative sale. If your price is out of sync with
the market, you’re likely to turn off a large group
of potential buyers. Contrary to popular belief, a buyer
usually makes an offer on a fairly priced property before
making a lower offer on a listing that is seen as overpriced.
Also, overpricing your home often helps sell your neighbor's
home faster than yours.
But my house
is worth so much more...
Emotion and pride should have no place in the pricing
process. Sellers speak of value, amount invested and what
they can afford "to take." Buyers consider only
price, condition and other properties offered.
Should I leave room for negotiating?
Experience has shown that the closer your listing price
is to the supporting comparable sales data, the greater
your chances for a quick sale at or near your asking price.
As a result, we recommend pricing as close to that figure
as possible. If you list your home at an unreasonably
high price and receive a full-priced offer, the price
will be tested during the appraisal and lending process.
As a result, it’s important to price your property
at something statistics and the experience of the local
brokers can justify. In fact, Agents will miss showing
your property to potentially qualified buyers simply because,
at face value, your property is out of their clients'
price range.
Contact
us for more info on how to price your Saratoga property..
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