When the time comes for you to sell your home you will want to make money on it. Every seller wants to make money and every buyer wants a good deal. That is why the art form of negotiation is so important.
How will you know what price tag to put on your house? Most sellers think about what the house is worth to them, not the buyer. When you think that way you are looking at what you put in as a down payment, how long you have been making payments, all the upgrades you added, and how much you need to make on this house to be able to buy the next house. The buyer looks at things differently. The buyer is looking at the location, what they will have to do to make the house a home for them, when appliances will need to be upgraded, and how much it will cost to recarpet. You get the idea…buyers and sellers are motivated differently. So negotiations are very important.
When you pick a listing price, consider your motivation. How long do you have until you need to be out of the house? What is your motivation to sell? If you overprice your home, it could sit on the market and not show to motivated buyers. I show my sellers current market data on houses selling in their area so they know what the price should be. If they choose to go higher, they know it will take longer to sell the house. In today’s tough market, buyers have the luxury of being picky. With a lot of inventory on the market, the house must be listed at the fair market value and be ready for the buyer to move into. Those are the houses that are selling right now.
Remember, price is 95% of Marketing. I market all of my listings the same with a six month program that gets the home in front of the buyers. If it’s not showing I know it’s overpriced. If it shows a lot and there are no offers, it’s overpriced. If you really need to get a certain price for the house, then give the buyer an incentive. Offer them the swing set, the refrigerator, a home warranty, or a bonus to the selling agent. Otherwise, price it correctly for today’s market and it will sell.