"New" is a very powerful word when it comes to selling.
By far the majority of interest occurs when your house is first on the market.
When your house is new to the market, the "new puppy on the block,"
it will attract the most attention from buyers who are looking for homes in this price range.
Words like "stale" and "shopworn" are in our vocabulary for a reason and they are not a positive as far as selling your house.
The Pricing Two-Step
Determining the right price is really a two-step process:
First, you have to find comparable houses; and
Second, set your price based on those comparables.
Factors That Affect The Right Price
There are no identical twins when it comes to houses; every house is unique.
Even if you were able to clone your house, creating a perfect duplicate, it still would need its own unique piece of land.
Following are some of the reasons why very similar houses may sell for very different prices.
Location - The old cliché that the three most important things in real estate are: Location, Location and Location - is more true than not. This is the one thing you cannot change about your property. Adding a spectacular new kitchen or Hollywood style bath may add value to your house, but it will not change its location. Included here are such things as community reputation, services, and quality of the local school system.
REMEMBER that your house's location is one of the reasons you bought it in the first place. If you paid a premium because of its lakefront view, you can probably expect to recoup that when you sell. If you were able to buy more house for your money because the location may not have been ideal, your buyer will be looking at your house for the very same reason.
The good news is that there are buyers for both locations. The other good news is that each seller will probably make out just as well considering where each started from.
Competition - The cliché here is "supply and demand", in this case, the "supply" part. If yours is one of many for sale, the supply may keep prices down or at least not allow them to rise to where they would be in a tight supply situation. If yours is the only house in your area that is for sale, the law of supply and demand takes over and you should be asking more.
If you have overpriced your house, you will then be in the unenviable position of selling everyone else's houses. Your overpriced house will make the others seem like a bargain.
Timing - Selling in a tight economy might dictate a lower price than selling in an economy in which jobs are plentiful and people feel secure.
Interest Rates - Prices are also affected by mortgage interest rates. When rates are low, you can price your house a bit higher because the buyer's cost per month will be lower. As interest rates rise, increasing a buyer's cost per month, the price has to come down for the same buyer to be able to afford your house.
Condition - Make your house look as fresh and well maintained as possible. No one wants to pay top dollar for a place that shows poorly.
This is the first in an ongoing series on how to price your house to sell for the most money, in the shortest possible time-no matter what the market conditions are.
Look for the next installment: Determining the Price
see Staging for Sale for tips on staging your house to sell ASAP.
