Pricing Real Estate Property | In real terms, any agent could price a home to sell, without a thorough market analysis. Should the price be higher than surrounding comparative houses?- within the immediate area sold at lesser prices!. This particular house will not sell. Ironically, in time to come, the owner will sell his house!. Notability in argument; at a reduced price, in line with the market-related price, of that particular area.
Pricing Real Estate Property
It’s improper to ‘property’ price a home; for the reasons mentioned above, without establishing its correct market-related price. Above all, this concerns similar homes sold in your particular residential area. Also, to be taken into account is that purchasers within the market, determine the market price. Only they know at what cost they would like to buy.
A house has typically four attributed prices!
- Hence, ‘pricing estate’ as to what the seller thinks it’s worth? Pie in the sky attitude, for as much as possible.
- The Comparative Market Analysis. A thorough assessment conducted by an agent.
- Even more, what the purchaser most likely, would offer to pay. Also, what they can afford to pay.
- The final negotiated settlement price.
Be cautious not to over-price, or you may jeopardise a sale.
- Prospective buyers become disinterested in ‘real estate’.
- Genuine, legitimate offers eliminated.
- Agents become disillusioned and weary towards a seller.
- Financing becomes a problem due to high escalating acquisition costs.
- A late forced sale would lead to a lower sales price.
Statistics have proved the following phenomena.
- Should your house list within 10% of the market value it would take ± 30 days to sell.
- If your house list within 20% of the market value it would take ± 60-90 days to sell.
- Therefore ‘pricing property’ within 40% of the market value, would take ± 100 days to sell.