When you make a decision to sell your house the first thing you'll likely do is set a price. We all want as much as we can get when selling our house, or anything for that matter. However, research has shown that most sellers feel their house is worth much more than it actually is, and the inflated price usually prevents the house from selling at Top Dollar.
Obviously this is the opposite result that we want, the goal is to get Top Dollar and we have to do everything we can to accomplish this, right? Let me explain what happens when you start too high on the asking price, how to get Top Dollar and how to find the True Market Value so you know you're Priced Right.
When a house is first listed for sale, the first 10 days are the best in terms of activity and buyer audience, after that each day will see a decrease in views. Because of this it is critical to have your house properly priced, otherwise your buyer will just dismiss the sale and move onto the next one.
Many sellers believe in starting high and slowly lowering the price until the house gets sold, this strategy is not only wrong it's also likely costing you money. The longer a house sits on the market the more "shelf worn" it becomes and the perceived value is affected. Think about the Brand New clothes you see on the clearance rack, most are deeply discounted yet nothing is wrong with them ... other than being on the shelf too long.
I use the term Perceived Value because what a buyer is willing to pay for something no one seems to want is much different than an item that everyone seems to want. And the longer a house sits on the market, the more it appears no one likes it, even as the price is being dropped multiple times. What starts going through potential buyers minds is that there must be something wrong with the house, that in turn brings in a Perceived Value that is much lower than actual market value.
Market Value by definition means: The price something would sell for between a willing seller and a willing and able buyer, in a normal market, with proper exposure and no creative financing or sales incentives. I have paraphrased it, it's much more wordy than this, however I'm sure you understand Market Value now.
Point being, find the Value of the house and price it right, from the start. Personally, I like to start BELOW the true value because I know this will bring more buyers and cause them to compete with each other. Once this happens I will get Top Dollar for the house, guaranteed.
Here's what you are looking for in terms of placing a Value on a house you want to sell:
Using a Real Estate Search website - Realtor.com
I suggest using Realtor.com over the others because it is tied directly to the MLS systems that all Realtors use to list properties. The other websites also get their information from the MLS systems, however I have found that there is often a delay between the two systems, causing these others to be lagging several days behind on information. Both on newly listed available houses and those that have been sold already. Whichever one you decide to use should have a very similar search model.
That's the basis of how doing a Comparative Market Analysis is completed. It is important to understand that Appraisers and Real Estate agents do have access to actual Title Searches this allows them to use more variables when determining what houses match best.
If you haven't done so already I would suggest reading my Free Guidance post "FSBO - You Can Do It, Here's How" for more information on selling a house yourself.
I am into All Things Real Estate, Right? Right!
If you've been reading through my helpful guidance posts there's a good chance you have read this before.
Would you like more help in finding the value of your house? If you'd like my help in getting your house sold for Top Dollar, and saving a Ton of money doing so, then by all means reach out to me. It's full service help and guidance, from establishing the True Value to making sure you get Top Dollar on the sale, you'll be well taken care of every step of the way.
As always, my help to you is risk free, because I only get paid when I am successful at helping you get your house sold.
That's certainly proof that I am here to you help you accomplish that goal.