Pricing is directly related to the length of time it takes to sell a real estate listing and whether it may sell at all. Pricing is crucial at all times but is particularly critical when there are an abundance of listings available. The following is advice on pricing techniques for properties NH.
Take Into Account the Local Market
Each local market is unique. When you see statistics on the news, those usually refer to national figures. Your specific city may be dramatically different. A local real estate broker will provide a CMA which evaluates sales of comparable homes in your geographic area and provide an anticipated price range in which your property could sell. This amount may change continually, so avoid referring to outdated reports.
Refer to the Facts
When reviewing the market report, remember that there is a range. Where your home should be in that range depends on other options on the market and your preferred time frame. As a seller, it is common to have pride in your house and the repairs put into it. Unfortunately, not all potential buyers will attribute equal value to specific upgrades. Expect that it is rare to get back the total dollar value of renovations. Additionally, market values can be affected by foreclosed homes in the area, which are traditionally listed at significant discounts and remain used as comparable houses. Market value is actually the amount that a buyer is willing to pay for a property at the current time. It might not necessarily meet your estimates or exceed what you paid for the property.
Listing above the reasonable range can result in extended listing time frames. If the market declines further during that listing time, the property may ultimately sell for even lower than it could have if positioned accurately to begin with. Additionally, home buyers commonly have a negative feelings about properties that have been listed for a long time. This is difficult to overcome even if a listing lowers in price eventually. Overpricing can be extremely damaging.
Words of Wisdom for Sellers
If the market value of your home is dramatically different than what you need to sell for, it may be best to watch the market and wait for values to go up rather than pricing high and allowing it sit for a lengthy period of time. If you have no choice but to sell and need to do so within a defined time frame, picking a price reflective of the market and competitive with current properties will be crucial to attaining your goals. Time is money and mis-pricing can be more damaging than you anticipate.