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Selling your home…beating the odds in a buyer’s market: Pricing to Sell

May 27, 2011

Now that school is out and summer is almost officially here, you’ll start to see more and more homes pop up for sale.  Unfortunately, not all sellers will know how to make the most of today’s market.  If you’re thinking of listing your home, bookmark our blog and don’t miss this series.  Over the next few weeks, we’ll introduce you to some statistics and tips to help you view your house not as your home, but as the future home of the buyer you need to attract.  So let’s get started!

Sellers can still get the highest possible list-to-sell ratio and sell their homes as quickly as possible if they are willing to put their trust in two time-tested principles of real estate:  condition and price.  These are the only two factors that sellers have control over, and they are the only two that buyers will care about the most.

Let’s take a look at the top 10 pricing considerations first.

  1. Buyer motivation – 75%
  2. Condition of Home – 73%
  3. School district – 66%
  4. Updates/Upgrades – 62%
  5. Seller motivation – 59%
  6. Location – 59%
  7. Features of home – 54%
  8. Recently sold comps – 54%
  9. Inventory – 44%
  10. Price per square foot – 41%

As you can see, sellers have control over three: condition, updates, and price per square foot.  And this is where your agent is key…work with them to establish the most competitive price.  Here’s why:

Based on Keller Williams Reasearch, 48% of Sellers priced their home according to their agent’s interpretation of its market value.  As a result, the listing:

  • Sold after 56 days on the market compared to 105 and sold 49 days faster.
  • Sold for 6.7 percentage points higher in the list-to-sell ratio.  In other words, for a home listed at $200,000, that resulted in a list price-to-sell ratio of 96% vs. 89%.  That’s a difference of $13,400!
  • Sold for at least 1 less price reduction

Price your house right the first time and save yourself time and money!

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