Get Competitive With Your Home Sale

Like many other things in life, selling your home is a competition.  You are competing with the other homes that are for sale in your local area.  You are trying to position your home as the best house for the buyer and the best value.  That’s why it’s so important to know what the current market is like and to price your home accordingly.  Your real estate agent can provide a CMA (current market analysis) and this will be your best tool for watching the score board.

If your home has been sitting on the market for a while it’s time to make a change.  This is the equivalent of being benched and the only way for the coach to put you back in the game is by showing him a new value.  This can be done in one of two ways.

The most common is to lower the price.  You don’t have to lose your shirt (though a reference to shirts vs. skins could be added here).  Buyers search in price ranges.  Let’s say your home is listed for $250,000 in a category of homes between $250,000 and $279,999. Since potential buyers are often financially qualified in round numbers (i.e. they can afford a home up to $250,000 given the size of their down payment and closing costs required) they might be hesitant to search too far into the higher price category; and instead, look for bargains in the lower-priced listings where excess down payment money could pay for home improvements instead. 

By dropping the price even a minor amount, say to $247,000, the property would then be packaged with lesser properties that could have trouble competing in square footage, amenities, etc. to yours. In essence, buyers could see the added value in purchasing your home.  Just as an overpriced home will stall on the market, an under-priced home will send up similar red flags including that something is wrong with the property (thus the drastically discounted price.) As always suggested before making any changes (up or down) to the listed price, make sure the agent prepares a new CMA.

Repositioning the property in MLS doesn’t have to mean lowering the price. Raising the price can reposition it as well. This can often be justified by using off-setting incentives for buyers like agreeing to pay extra discount points to enable the buyer to use a 2/1 buy down in a loan, lowering the interest rate two percent the first year and one percent the second (often assisting the buyer to qualify, depending on the loan program.)

If you want a top of the line trainer to help you with the competition of selling your home, you need to hire an experienced real estate agent.  For more tips or suggestions, call Helen today at 847.967.0022 or email [email protected].