Exit Realty King & Associates - Real Estate ReInvented serving Middle Tennessee










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		Pricing Your Home for Sale...

		Pricing your home is the single most important step in successfully selling your home!
		The Importance of Pricing Pricing your home correctly is absolutely critical to selling it! Housing is a commodity that is bought and sold in a free market and as such is governed by the market principle of supply and demand. Like any other commodity, housing prices move both up and down over time. Realtors do not set market prices, buyers do! In order to sell, your home must be priced so that it compares favorably with the other choices a buyer will have in the same price range! Buyers shop by price range and look at properties in their selected range. The homes in each price range that compare favorably to the others in the same range will sell. The homes that do not compare favorably will not.
		Buyers will not look at and REALTORS® will not show overpriced homes. No showings or no offers means that the buyers judge the home to be overpriced compared to other comparable homes. *In order for the buyer to obtain their mortgage financing and the sale to close, the home must "appraise" for the purchase price.* The sale is usually lost when the house doesn't appraise and the lender will not lend the amount requested by the buyer. Studies by the National Association of REALTORS® show that the longer a home is on the market, the lower the eventual selling price will be. The first questions buyers ask when they are looking at homes today is: "How long has this house been on the market?" The longer the house has been on the market, the lower the offers buyers will make. Your home enjoys the most market interest during the first 30-45 days it is on market. This is the period during which the most number of buyers and Realtors will look at the property. *It is very important that your home be priced correctly at the beginning if you are interested in maximizing the amount you receive from the sale!* The market is so competitive today that even over-pricing by a few thousand dollars can be the difference between selling and not selling. The first offer is usually the best offer that you will receive. It can be scientifically proven, but it almost always works out this way, and this has been my experience. Factors that do not affect market value What you paid for the home What you owe on the home What you need to afford to buy another home What the assessed valuation is The cost of home improvements you've made
		The Dangers of Overpricing Your Home You will lose the excitement that a new listing generates: Real estate agents are working with buyers who have seen what is currently on the market and are waiting for something new to be listed. Therefore, the most activity will take place in the first 30 days of a listing. Your home will probably receive its highest and best offers during this time. After the initial period, the only people to look at your home will be new buyers in the marketplace. You will lose the most qualified prospects: Buyers won't be able to "make an offer" because they probably won't see your property. They will view the properties that are priced within their purchase power range, knowing that they cannot afford anything above the price range. Overpricing helps sell other, more competitively priced homes first: Your home may be used to demonstrate the good value of other properties. Your objective should be to enter the market in a position that will attract prospects, not drive them away. Your home may become stale on the market: Prospects may wonder why it has been on the market so long or if something is wrong with the property, even after you lower the price. You may even have to settle for less than market value. A house takes on a reputation surprisingly fast, so don't wear out your welcome on the market. You lose a strong negotiating position when your house is on the market a long time, both financially and mentally: Prospects will not "rush" to make an offer on an overpriced property, and you may feel compelled to accept less when they finally do. If you do get an offer, the contract may fall through because of appraisal problems: The lender must justify the price to the market. If the house does not appraise, the sale usually fails. The most common mistake sellers make... is to list their home with a REALTOR® who suggests the highest price. The home more than likely never sells at this price and the seller loses six months or more of valuable time.
		Showing Activity
		The majority of prospect activity on a new listing occurs in the early period of marketing. This happens because real estate agents maintain an inventory of active prospects that have been cultivated over time. When a home is newly listed, agents arrange for them to see it. In the first four weeks the current pool of active buyers is looking at each house that is new to the market. Once this active group has seen the property, showing activity decreases to only those buyers that enter the market each week. Now we have a situation where we have a house looking for a buyer. For this reason it is important that sellers have their home in the best condition and at the best price at the time of first exposure to the market.

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