by Jennifer Lynn Walker
Why is it that we need to price our homes correctly?
It’s important to find the perfect price for a home that will be going on the market for sale. For an agent/real estate broker’s are trained in finding that right price. Real estate markets fluctuate up and down. No one can know of a certain selling price in advance, however by doing the right research, you can be assured the best price and profit in your pocket.
A realtor will do a Comparative Market Analysis (CMA). By analyzing sold properties, active competition, and the market statistics, this will give a clear picture of the value of your home and what it should be listed at. The price is backed by evidence that makes perfect sense why that house is the price it is.
Buyers these days are very savvy. On their own with Internet or with a real estate broker, after visiting many properties, they begin to understand the market value. It’s not unusual for buyers to give me a high-eye-browed look, “what are these sellers thinking?” Knowing that the house is over-priced.
Sellers become emotionally attached to their home. There are many times when I present them with a selling price and they are insulted and become defensive. They’ve put their life into their home; their kids grew up there.
What sellers are usually thinking
- I have to re-coup my money that I put into renovations
- I’ve lived in my house for years and it’s the best house around
- My neighbour who has the exact same place has their place up for much more then what you’re suggesting (and it’s still on the market…hmmmm)
I understand. However the buyer, even if they fall in love with the place is rarely going to pay more then what they think it’s worth. They are most times thinking, “re-sale value” and “getting their bang for their buck”.
Statistically speaking, homes sell at a higher price when they start at fair market value. When they are overpriced, they may still get all the buyers, however the house sits on the market. After months gone by, the house price drops and then the buyers think, “what’s wrong with the place” and “I’m going to low ball the price because they must really be ready to sell and desperate.”
Real Estate Broker & Educator
Jennifer Lynn Walker has specialized in buying and selling both residential and multiplex properties since 2003. She’s built a strong network of specialist, to give her clients a seamless experience throughout the real estate journey. Founder of Montreal Real Estate Investor’s Group, and Jolly Green Homes. How can I help you today?