How to Price Your Home
A Little-Known Pricing Tip
Our robust 3-step pricing system accounts for all possible market conditions and ensures you sell for the most amount of money possible.
Step 1 - Supply vs Demand
The number we use to measure supply vs demand is called "Months of Inventory". Here’s how Months of Inventory is calculated…
Supply = Number of homes for sale right now
Demand = Average number of homes selling per month
Supply ÷ Demand = Months of Inventory
Determining the health of the market you’re selling in is absolutely essential. If you’re selling in a great market (0 to 4 months of inventory), then we’re going to push the envelope on price. If you’re in a slow market (8+ months of inventory), we'll need to be more conservative.
By the way, sometimes people mistake “Months of Inventory” with “Days on Market”. 3 months of inventory does not mean it will take 3 months to sell your house.
Step 2 - Comparable Sales
In this step, we’re going to look at all homes similar to yours that have sold, and compare them directly against yours. When we’re done with this step, we’ll have a price range that your home could appraise inside of.
Step 3 - Active Listings
Here we look at the homes you’ll be competing against. We step into the shoes of a buyer and objectively evaluate your home vs the other options.
In your listing consultation, we’ll complete the 3 steps above, and then together we will decide on a list price.
3 Things Can Happen When Your Home Goes On the Market...
Don't go fishing with your bait out of water!
The #1 Most Common Mistake in Selling a House
The most common mistake is to try to “test the waters” by pricing their home high at the beginning, and reducing it a few weeks later if it hasn’t sold yet.
The longer your home sits on the market, the less it will sell for. Buyers will wonder why it's been on the market so long, and usually assume the worst. A house takes on a reputation surprisingly fast, so don’t wear out your welcome on the market. Price it right at the beginning and you’ll sell for the most money possible.
How to Get Your Home Ready to Sell
"If You Want to Know Why John Smith Buys What John Smith Buys,
You’ve Got to See the World through John Smith’s Eyes"
You want the buyers to feel as if they could move right into your house without changing a thing. Any personal pictures left out will make it more difficult for the buyer to begin seeing themselves taking ownership of the house, because they will keep being reminded of who currently owns the house.
Any clutter left on kitchen countertops, tables, bookshelves, etc will cause your home to feel smaller than it really is.
Why do almost all home builders use neutral colors in their model homes? It’s because builders are professional home sellers, and they know what causes homes to sell!
It’s common to think “I shouldn’t change the paint or flooring because the buyer will want to choose their own colors.” In reality though, buyers buy on emotion, not on logic. They will walk through your home and either have great feelings about it or not. Yes, there are buyers out there that can see past paint colors, but the majority of buyers don’t have the same personal tastes as you do and they don’t have the vision to see beyond the colors. You will be turning away 80% of the market who only want homes that are ready to move in.
Here are some questions to ask yourself:
1. Have I done everything I can do to give my home a WOW factor for buyers as they walk through the front door?
2. Is the house neat and clean?
3. Have I addressed any issues that I need to address as far as making the house look good and smell good?
4. Do I have any deferred maintenance that I need to take care of?
5. Do I have anything that is a significant issue with regards to housekeeping or the yard?
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