Overpricing a home has been proven to slow down the selling process or not selling a home at all. It is crucial to price a home accurately so that you can sell your home quickly and for the best value.
All of this can be accomplished with a pre-listing appraisal which will determine the fair market value of your home. Let me break this down for you.
1)Selling quickly- When a home is appraised the days on market (DOM) of other properties is just one of the statistics used to determine the value. This is exactly what it sounds like, it the amount of days it takes for a property to sell.
When a home is priced low it often sells fast but also leaves the chance for you to sell below market value. This is often done when you are in a rush to sell. However, you may find that some agents will price a home low to solicit multiple offers and overbids, however these agents would still need to determine the price of the home before determining a low price to list it at.
The property should be listed at a price that matches other homes that are selling within the DOM range of other properties in your neighborhood. This should make your property sell for market value in a short amount of time.
2)Accurate Pricing- There is an abundance of information available to home buyers on the internet so if you are pricing your home high or low the buyer will most likely know by doing a quick google search of other properties in your area.
If a home is priced to high, it often takes much longer to sell which increases the DOM but also you may see the price change multiple times due to people walking away because it is priced to high. When it takes this long many seller’s loose patience and often will sell lower just to be done with the process.
3) Competing with your neighborhood- If a home is priced accurately sellers will notice that is in a similar price range to similar properties in the neighborhood. Buyers compare square footage, bedroom and bathroom count, age, style, etc. if your property is priced much different than the other properties in your neighborhood, people will notice.
4) Financing- The appraisal is generally one of the last items required for a home buying transaction. If the appraisal comes in much different from your contract price it could sabotage the deal. The bank will not finance a property that is worth less than what it is being sold for. The contract price must represent more than just what the seller wants for their property, it must also reflect the fair market value
Pricing a home precise will help you sell you home for the best value and quickly. Trying to beat the market can often cost you money and time. Make sure you consider this the next time you are looking to sell a property. Be a smart seller.
Please contact our office with any questions you may have or to schedule your appraisal appointment at 760-741-7699, brandlinappraisal@yahoo.com or use our contact page on our website.
Brandlin Appraisals Inc. specialize in helping people who need appraisals for estate purposes, divorce, date of death, bankruptcy, FSBO’s and more throughout San Diego county. For more information please contact us at (760)741-7699, or visit our website at Brandlinappraisals.com, or email us at admin@brandlinappraisals.com
Mike Brandlin
San Diego, CA // Real Estate Appraiser
www.brandlinappraisals.com
(760) 741-7699
San Diego Real Estate Appraisal Services For:
* Divorce Appraisals / Marriage Dissolution
* Bankruptcy Appraisals
* Bail Bonds Appraisals
* Estate / Date of Death / Retrospective Appraisals
* Financial Planning & Trusts
* PMI Removal Appraisals
* Pre-Foreclosure & Short Sales
* Tax Assessment Appeals
* Pre-Listing, Pre-Purchase, FSBO’s
* Probate Appraisals
