Home sellers in Sussex County NJ - Lake Mohawk to Highland Lakes, Branchville to Crystal Springs - sometimes wonder about the market data and pricing info we listings agents give them.
Here is a post by Jeff Dowler, a top agent in Carlsbad CA. He shows that the issue isn't confined just to Sparta, Hamburg, Wantage!
If you are a seller in most markets, determining the listing price is probably the most important, and perhaps most difficult, decision you need to make, at least if you are serious about selling. If you aren't then the price doesn't matter. Just pick the price you want and go with.
But savvy folks will pay attention to the things we know about setting a reasonable price, but sometimes ignore.
- You don't determine the sales price, nor do agents - the buyers do. Your home is really only worth what a willing and able (and qualified) buyer is willing to pay for it... and what you are willing and able to accept
- What you need to buy a new home, or what you spent fixing or improving your home, has no bearing on what your current home will sell for
All the marketing in the world will not sell an over-priced home
- Any house will sell if the price is right.
- Determining list price is an art, not a science. Some markets, or unique homes, make it even more difficult to derive the right price. But it's easy to tell if it's the wrong price.
- The wrong price will cost you - time, aggravation, money (mortgage, utilities, insurance, taxes), plus your home will become a stale listing and every buyer will want to know "how long has it been on the market?" and "why hasn't it sold?" or "what's wrong with it?" And even if you do find someone to pay a high price (fat chance) it probably won't appraise, and since the majority of buyers are financed, you will lose the buyer or have to renegotiate the price.
- Price will get folks in the door...or keep them away Only once they are in the door does it become an issue of amenities and condition
- Your competition is not only the homes that are just like yours
That said, it's essential to understand what is going on in your particular market with regard to the competition, and the inventory. You need to know what is selling in your price range and how long it's taking. If, for example, homes in your price range are selling at the rate of 10 per month and there are about 100 homes for sale, you have a 10% chance of selling in the next 30 days, on average.
And where, on average, are homes selling with respect to list price - at 95%? 90%?
Pick an agent to help you who will tell you the truth and the facts about your particular market, and not what you want, or hope, to hear.
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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360 or email me at JDowler@remax.net.
All content copyright © 2009 Jeff Dowler Carlsbad Homes and Real Estate Tidbits
Wrong!