Setting a Price for your Home

So you've decided to put your home on the market. Most sellers have a pretty good idea of what they would like to get for the sale of their home. Sometimes it doen't always correspond with what they could realistically receive for the home, but that's human nature. We all want to make the highest possible return on our investments.

My warning comes to those who decide to go against the tide and set their price too high. This could be a serious and costly mistake.

The following factors should be taken into consideration when setting a price:

1. Buyer's Frame of Mind- If the home is priced to high, it won't even be considered by potential buyers. You may have the mentality of "if they offer less, I'll probably take it", but that offer may never come because the potential buyer will pass on viewing your home because it is out of their price range. Essentially, your home will look to expensive to consider.
2. Comparable Sales- Buyers compare the price of your home to what the price of everything else on the market is. Your best guide in setting a price involves looking at homes of similar location and features that have sold within the last three months. This will give you a realistic expectation of the price you should expect to receive for your home. Your real estate agent can furnish you with all of this data. You will also want to look at the prices of currently listed competitive properties to help determine your price.
3. Market Conditions- We've all heard the phrases "buyer's market" or "seller's market" -- If real estate is booming, you will likely sell your home in days. When economic conditions are as rough as they are right now, you could be in it for the long haul. In a buyer's market, one can easily expect his/her home to be on the market for months. So, if it is important to sell fast, you need to offer an attractive price for the home at the outset.
4. Incentives- What could make your home more attractive to a potential buyer? Offering incentives, such as paying all or some of the closing costs in the transaction. Other incentives can be to the selling broker who brings the buyer, such as "$1500 bonus to the broker who brings an acceptable offer before July 31st." I've even seen sellers offer bonuses such as a vehicles, boats, and various furnishings to potential buyers. Anything that adds value in the eyes of the buyer can be used as an incentive to purchase.

If you take all of these factors into consideration, I have no doubt you will be able to sell your home at a satisfactory price and amount of time.

Feel free to contact me for advice and comparable sales data, if this is an endeavor you are considering undertaking.

Joe Harrison

Avalon Properties Group

Cell: 912-230-4294

Office: 912-280-0304

www.RealEstateofGlynn.com