Is your home priced to sell?

Robert Ramirez
RE/MAX Marina Realty
(707) 762-5611
Robert@petalumahomes.com
www.petalumahomes.com

Many of us “veteran” Realtors knew this day would come, we just didn’t know when—when the real estate market would start to turn. But turn it has--just as the sun rises and sets each day, so does the real estate market. As our market shifts from a “frenzied seller’s market” to a more balanced “give and take”, it appears that the market’s long overdue correction has finally come.

With over 156 Petaluma listings that have an average “days on market” of 50 days, pricing your property correctly has never been more important. Pricing your home is both an art and a science. Achieving the optimal price is the result of objective research into comparable properties, the current market trends, and a gut feeling about your property.

The right price should attract buyers, allow you to earn the most money possible, and help you sell as quickly as possible. The simple fact is that price is the number one factor that most homebuyers use to determine which homes they want to view. If your property is not being viewed, then price may be the problem. It’s important to remember that, although you set the list price, the selling price of the home is determined by the buyer. Try to avoid allowing your enthusiasm to impact your better judgment as overpricing is a common mistake that can cost you in the end.

With that in mind, here are some reliable guides to use when pricing your home.

Factors Affecting your Asking Price:

• How quickly you need to sell
• The amount of competition in your price category and area
• The availability, flexibility and affordability of financing
• The sales prices of similar homes (comps) sold in your area within the past three months

Factors That Should NOT Affect Your Asking Price:

• The original cost of the property--price is determined by today’s market
• Any investments you’ve made in improvements
• The cost to build your home today
• Emotional attachment
• The opinions of friends and neighbors

Common Problems of Overpricing:

• You will help sell your competition, other homes that are priced lower
• Your will stay on the market longer
• You will lose market interest and qualified buyers
• You will have to “chase the market down” by doing price reduction after price reduction while buyers wait to see how low you will go
• You will create a negative impression of the property
• You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs
• You may have to accept less money than if you had priced it correctly to begin with
• You may lose the home you want to buy

With the mix of real world experience, your local Realtor (not your relative, neighbor, or barber) has the tools necessary to compute the fair-market value of your home based on both the market place and personal considerations like your “must-sell” date. Remember, the right price is the key to a successful sale. So, don’t trust the sale of your home, your most valuable asset, to anyone other than an experienced, professional Realtor.