Buyers in the Northern Virginia market are looking for a good deal. They won't buy a house that is overpriced no matter how you try to entice them. Forget the free lease on a Mercedes or cruise to the Bahamas those aren't going to bring any offers to the table. Price your home right and offer the right incentives (closing cost assistance) and you may be on the short list.
Just as in Part I of If You List It They Will Come don't be swayed by the agent who comes in the door and tells you the highest listing price for your home and asks you to immediately sign a listing agreement. Every agent you interview has to be able to back up what they say with detailed information. Check it carefully and make sure they can justify the price they are suggesting. If not show them the door!
So how do you determine the right price? Forget the crystal ball. The most accurate way is by having a professional appraisal of your property done. Most sellers don't go to the expensive of having an appraisal done on the property when they first put it on the market instead they rely on a Realtor® to help them come up with the correct price. In a market where prices have declined you should start with the most recent sales in your neighborhood and then work back only as far as you need to find a baseline price.
Why do I say baseline price? It has nothing to do with the price you will list your home for but instead a baseline for you and your Realtor to begin making the necessary adjustments to come up with the list price of your home.
Did the last sale in your neighborhood have granite counters and you don't? Adjust your price downward.
Does your home have a finished walk-out basement and the last sale didn't? Adjust your price upwards.
Do you only have three bedrooms above ground and the neighbor has four? Adjust your price downward. But wait I have a legal bedroom in the basement doesn't that count? Yes, but not the same value in an appraisal as the one above grade.
Now you and your agent need to take a look at what is currently for sale. How long has it been on the market, have they lowered their price since listed, what are the features of the current listings as compared to yours? A good Realtor® will have already scoped out the competition before they came to your house and I always recommend to my potential sellers that we make a quick tour of a few of the listings to talk about the pros and cons.
Armed with all of this information and a few intangibles that your Realtor® can talk to you about you can set your listing price. The first time a buyer walks in the door is when you are going to capture them for a return visit and a future offer. The first 10 days your home is on the market are the most critical. If your home is overpriced buyers and their agents will know it and pass you by. Price it to low and the will also wonder what the problem is. Price is right and they will come!
Stay Tuned for Part III-Marketing Your Home For All It's Worth
Related Posts on Selling Your Nothern Virginia Home
The Price is Right
Pricing Your Home to Sell in Today's Market
Help my House Isn't Selling
Will This Effect the Resale Value of My Home?
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As an Associate Broker with RE/MAX Allegiance in Northern Virginia and native of the area I can assist you whether you are buying, selling or renting a home anywhere in Northern Virginia. For more information about the area or my services you can check VaRealEstateTalk or my Northern Virginia website.
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Good post...bottom line - Price it right and they will come. Well said!
Great posting. I wish the residents of The Florida Keys would take that advice. They still think it will sell for millions because we are on an island. That was the case 3 years ago but the times they are a changing.
Pricing is even more important in a declining market, if the seller wants to move their home they need to be very aggresive in pricing.
Take care!
RJH
Folkd need to take the market trend into the equation. Basew the price on what has SOLD with a +/- on the trend. If the sold properties were a few months back, well the snapshot you are using is a few months old. Stay ahead of the trend or your price will cause the seller to have to wait longer.
I agree about the 10 day rule. If you don't have any activity it that first 10 days, it is probably not priced right. I get a lot of sellers who say "but my house is so much nicer/in better shape." My answer - if a tree falls in the woods and no one is there to see it, does it make a sound? If your house is nicer but no one sees it, does it really matter?
Good post. Any home which is priced right "for the conditions" will draw activity.
Cindy ~ This is such a good post. We don't do sellers any service by pricing it too high, even if they think it should be. You made a lot of good points.
Gary W-our market is not one where overpricing a listing is going to get the home sold.
Gary McAdams-perhaps it is the HGTV Dream House that makes them think that all the prices in the Keys are in the multi-million range.
Robert-you have a much better chance of getting a contract sooner than later if you price it right.
Scott-following the market down is not a good trend. Price reductions only make the buyers want to go for the jugular.
Kevin-nice response. Most sellers think there place is nicer than the one next door. That is why I encourage my sellers to come on tour with me so they can honestly compare.
Derrick-my latest listing went under contract in 2 weeks and we had loads of traffic. It had been previously listed 50K higher without one potential buyer in over 2 months. Sometimes sellers just have to be gently lead to market reality.
It truly is about Pricing correctly. Homes DO sell and fairly quickly - IF they are priced to sell. Too often people thinks the term "Priced to Sell" means "giving it away". We need to change it to "Priced at Current Market Value"!
Everything sells - at the right price!
James-very true. Price, condition and location are the winning trifecta in our current market.
Cindy~You are right on target with this post and pricing the right is key to the success of the home selling in a timely manner.
Julie-I'm going into round three with a new home builder right now who seems to be the only one who hasn't heard that it is a buyers market. SIGH!
Cindy - Proper pricing and proper advertising will sell anything - it is a matter of knowing how to market!