Factors of Perfect Pricing

We’ve all heard the saying: “Location, Location, Location.” More accurate in today’s market is: “Location, Condition, Price.”

Location is still the number one consideration in what makes a property desirable. People want to live in areas that are convenient to quality schools, transportation, shopping and dining, have affordable taxes, or are in popular neighborhoods. Items negatively affecting location, even in a popular area, may be it’s proximity to a busy street or unsightly neighbors.

Condition is crucial. To get top dollar, your home must be in impeccable condition and appeal to a multitude of buyers. It doesn’t have to have all the latest bells and whistles, but it must be clean, odor-free and in nearly ready-to-move in condition. Even with the popularity of HGTV, the reality is that most buyers are not handy or they lack the time for a fixer-upper.

Your home must have a “Wow Factor”. Whether it’s a new gourmet kitchen, gorgeous landscaping, or “garage-mahal”, it must stand above the competition. However, if your home is similar to other homes for sale in your area or the condition is less favorable, sometimes the wow factor must be the price.

Critical item to consider when setting a list price:

  1. A high price won’t be supported by an appraisal, so buyers won’t be able to get financing.
  2. Appraisals done on your property for re-financing or home equity loans, property tax evaluation or insurance purposes are usually not an accurate indication of fair-market value. Lenders or other institutions have different motives to setting the value of your property.
  3. Buyers are highly-educated about the real estate market and are looking for value.
  4. If your property lacks something that’s important to many buyers – such as a garage or basement or is in an undesirable location – it must be reflected in the price.
  5. Real estate agents don’t dictate price; the buying market does.
  6. The sentimental value of your home isn’t a factor in the price.
  7. The amount of money you owe on your mortgage isn’t a factor in the price.
  8. The amount of money you need to buy your new home isn’t a factor in the price.
  9. Your motivation is important. If you need to move in 30 days because of a job transfer or because you’ve already bought another house, getting the highest price may not be a top priority.
  10. Setting the price too high in today’s market may cost you more in the long-run. Your house may not be shown, you may get only “low-ball” offers, and it may soon become shopworn.