Pricing real estate
Pricing real estate. Any agent could price a home to sell without doing thorough market analyses, however, should the price be too high and comparative houses within the immediate area are being sold at a lesser price, the house will not sell. In time to come, the owner will eventually sell his house at a reduced price in line with the market-related price of that particular area.
Pricing real estate correctly
It is considered to be improper to price a home without establishing its true market-related price of similar homes that have been sold in your residential area. It should also be taken into account that purchasers within the market determine the market price, as only they know what price they are prepared to purchase for.
A house normally has several attributed prices
- What the Seller thinks it’s worth… Pie in the sky attitude… as much as possible.
- The Comparative Market Analysis… A thorough assessment conducted by an agent.
- What the purchaser is prepared to pay… What he can afford to pay.
- The final negotiated settlement price….
Be cautious not to over-price /over value or you may jeopardize a sale
- Prospective buyers become disinterested
- Genuine legitimate offers are eliminated
- Agents become disillusioned, and weary towards seller
- Financing becomes a problem due to high escalating acquisition costs
- A belated forced sale would normally lead to a lower sales price
Statistics have proved the following phenomena:
- Should your house be listed within 10% of the market value it would take ± 30 days to sell.
- Should your house be listed within 20% of the market value it would take ± 60-90 days to sell.
- Should your house be listed within 40% of the market value it would take ± 100 days to sell.
The market value of your property…
Please take note of the following; The current market conditions determines the value of your property…