A major home-selling decision arrives right at the start: setting your home’s
price. It’s a step that can be decisive for good or for ill.
But what is the “right” price? We know what it probably isn’t—it’s not the first number that
pops into your head, nor is it likely to be The-Price-of-Your-Next-House-Plus-the
Cost-of-a-Family-Vacation-in-Tahiti-Plus-the-New-Sportscar-You’ve-Always-Wanted-to-Own.
It’s also not a price that will ‘test the market’ (to make sure there hasn’t
been an upward spike in demand since the last comparable neighborhood home sold).
Setting a home’s price in the right ballpark can be easier than many
people assume. You can get there by a number of different routes, most of them
tied to recent neighborhood history:
BUYER APPEAL
Setting a home’s price doesn’t take place in a vacuum: first come the
buyers you need to attract. If your property is priced significantly above the
market, your ‘market test’ will tell you that only uninformed prospects—or no
prospects—are interested in pursuing your offer. An out-of-whack asking price
can also be taken as evidence that the seller (you) aren’t really interested in
making a deal happen, which will make professionals less likely to present it
to qualified buyers.
AIDING THE COMPETITION
By setting your home’s price significantly above the competition, you do
everyone else in the neighborhood a terrific marketing favor. Even prospective
buyers who appreciate your home’s innate qualities may be unable to resist what
suddenly looks like a real bargain-basement buy just down the street!
APPRAISAL REALITY CHECK.
Even if you do interest a willing buyer, unless he or she belongs to
Warren Buffett’s country club, a likely next step will involve a mortgage
lender’s appraisal. Setting a home’s price above any neighborhood comparable can
mean an appraisal that comes in below the agreed-upon purchase price. Even if
that doesn’t kill the sale through a loan denial, the buyer is likely to be
penalized through a higher down payment or interest rate— either of which can play
taps for your sale.
IT’S ONLY MONEY
Another (and perhaps the most persuasive) reason to right-price your
home is monetary. History shows that overpricing generally yields proceeds that
are significantly below those set more aggressively right from the start. It’s
human nature: successive price reductions look like desperation—which invites
low-ball offers.
If you are actively debating how to make the best of this spring’s Metairie
selling season, give me a call. Together we can map out a strategy that works!
Terez Harris NOLA Real Estate Group
(504)297-2619
Harris.Terez@gmail.com
Keller Williams Realty New Orleans 8601 Leake Ave. New Orleans, LA 70118 504-862-0100
Each office independently owned and operated. All brokers licensed in the state of Louisiana.
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