Pricing Your Home to Sell.
Pricing Your Home to Sell - It's the Pricing, Silly...
The Spring buying season is here! Homeowners are getting ready for market and buyers are studying the conditions. According to The Florida Association of Realtors 39% of the total yearly sales take place between April and July. This generates a frenzy of activity in the market. The end of the school year is ‘round the corner and its time for families to move. Inventory levels are rising and buyer demand is, too. Ready, set, go!
The homes that will sell this spring will do so because the sellers are motivated, the buyers see the value and are ready willing and able to close the deal. Now is a good time to get real and sell your home because there will be more eyes looking at it than in other months.
The eyes of the buyers are very well trained. They get to use the services of realtors to help them navigate and understand the market. Also, the internet offers excellent information about the homes, the neighborhoods, schools, crime rate, demographics, transit times for commuting, and of course the price for which other similar homes have sold for. In many cases, buyers do more homework than sellers when it comes to research on the properties. They certainly see more homes as part of the selection process.
Sellers have the same resources available at their fingertips, including knowledgeable realtors and the option to go see open houses that are similar to their home.
Once a homeowner decides to sell then its time to call all the resources in and get detailed information on what is going on in the market now. Motivated sellers want real intel, not pie in the sky. With that information the homeowner has to pick a pricing strategy; list high to leave room to negotiate; list at fair market value; price below market value. All three are used regularly and the days that it takes to sell the home is a clear indicator of which one it was. The longer on the market the more time the homeowner spent “chasing the market”. If it sells fast its because you nailed the pricing. The reasoning to price below market is often used when homes are in need of repair or remodeling. It’s very difficult to find those deals, just ask anyone who “flips” houses for a living and you’ll see.
The real estate market in our community is a benevolent one. If you bought property in 1996 it’s probably doubled or tripled in value. Few other markets in the nation perform that well.
This may be one reason that some buyers are willing to pay above the current fair market value in anticipation of living in the home for a long time. There is also an emotional component in that decision, as you may know. Such as, the spouse loves the house and makes it very clear to the other. As we all know a happy spouse equals a happy spouse!
The challenge again in this selling season for homeowners will be to find someone that is trustworthy to tell them the truth about the market and their home. One of the more difficult moments during the listing period is when the seller and realtor have to discuss pricing the home to sell. It’s a conversation that will happen at the beginning of the listing or sometime thereafter. The market is the market.
If you’re priced too high, wait and one day the home will be worth what you want. In that case it’s not a matter of price it’s a matter of time in the market. Or, take your head out of the sand, look at what’s going on around you and make the adjustment. If you want to move, now’s a great time to start living in your new home!
Frank DeValdivielso, a member the Miami FL Team and The Keyes Company, is based out of 2423 Le Jeune Road, Coral Gables, FL 33134. For more information you can reach Frank at his office, 786.378.8450, or cell: 786.273.8507. You can also email him at RealEstate@MiamiFLTeam.com and please be sure to visit www.MiamiFLTeam.com for the latest listing and news regarding real estate.