Pricing Your House to Sell
The reasons for selling your house are very important to consider when you decide on a price. There are many reasons to sell a house and each reason brings with it an expectation for how long it will take to sell. Price and speed of sale are fundamentally linked in the real estate market place. Some reasons to sell, e.g. in time for the school year or a work transfer, may have a short timeframe of only a few months. In other cases, you may not be constrained by time, which allows for more flexibility in pricing. Because of this range, it is critical for Dallas Area home owners to clearly identify their reasons for selling the property, and to make sure everyone involved with the sale are in agreement on those reasons. Too often, the husband and wife, or shared ownerships, have different reasons or priorities. This complicates the entire process from setting the right price to accepting offers and closing the sale. Take the time to get this right. Here are several circumstances that illustrate the link between price, days-on-market (DOM) and the reasons for selling your house.
Consider a family that needs to move quickly. They have been transferred for work and want to make sure they are in a new house by the time school starts. That gives them only 3 months to sell their current house. In this scenario they may also need the proceeds of the house sale to buy in the new location. Because they have a tight timeframe for their relocation, they need to consider not only how long it takes to accept an offer to purchase, but how long it takes to close the sale. With this scenario it is critical that they set the right price for their house to sell quickly. In their local real estate market, if comparable properties put their house price at $295,000, they should consider putting their house on the market under that price by five to ten thousand dollar or more. This price creates the best opportunity for a rapid sale. Buyers in this price range know value and will see the price as attractive. If it is a busy real estate market, you may get multiple offers and end up getting the value price or above. Price makes a big difference in how long a house stays on the market.
Some home owners need to sell for financial reasons. Perhaps they need as much cash as possible to put down on another house or to pay college tuition or pay off debt. Many reasons exist for needing the most from a house sale and each one impacting the pricing strategy. In this scenario the condition of the house significantly impacts the ability to get a maximum price. Buyers are willing to pay a premium for updated kitchens and baths, well maintained and upgraded systems such as roof, heating, plumbing and electric as well as newly painted interior/exterior or newly finished hardwood floors. Home owners who want maximum price need to be objective regarding the condition of their house and be prepared to make improvements or lower the price. In any market, comparable properties that have recently sold or are on the market establish the price range to expect for a house. Within that price range the condition of your house can make the difference between getting the high end of the range versus the lower end of the range.
Establishing the right price for a home to sell must take into account the reasons for selling. When there are life-events that create a short timeline for the sale, home owners need to understand how significantly price will impact their ability to meeting that timeline. In cases where getting the best return on investment is the top priority, home owners can be flexibility on how long the property stays on the market. However, getting the maximum return also means that the house is in excellent condition. A house that needs work cannot be premium priced. Ultimately the market place will let you know your home value and if you have priced it to sell. Knowing your motivations and priorities for selling your home is critical to set realistic expectations for price.