Price It Right...The First Time Around!

By
Real Estate Agent with Real Estate Marketplace - Louisville KY

Louisville Home Values...Avoid The 'Second Chance' Sell!

"I don't want to give my home away!" By far, this is one of the most common concerns shared by homeowners wishing to place their homes on the market for a sale. I'm here to tell you that, as your Realtor, I don't want to give your home away either. As a matter of fact...I won't give your home away, not even if you'd allow me to!

homes with dollar signsOne of the most difficult conversations to have with my future clients is the discussion over the value of their home with respect to the current market. It should be no secret that sellers want the most out of their investment, and usually intend to use the equity from one home toward the purchase of their next home. The most frustrating truth can be that neither the sellers nor their Realtor control a home's value. It is instead the buyers who have recently purchased homes who set the Fair Market Value (FMV) for those next in line wishing to sell.

The most common and detrimental strategy to pricing a home is to "try" at an exaggerated list price in hopes to receive a higher offer...even with the intention of lowering the list price as time passes. This exaggerated list price is often justified as ‘wiggle room' or ‘room for negotiating'. Regardless what you call it, it almost always results in the same failed effort! For the longest time, I too was party to this less-than-successful pricing strategy and had to be brought in line with the rules of the market.

Your home will realize its highest sale price if positioned to sell within the first 3-6 weeks of being on the market. Much of today's market is overpriced with respect to FMV. Homes that are priced at FMV, or slightly below, will queue ahead of the competition and will not be subject to months of sitting on the market while you constantly prepare your home for showing after showing. Those priced above FMV will get traffic but likely will not receive a purchase offer until the price is reduced to its current FMV. At this point, due to the home's time on the market, purchase offers are likely to come in at 5-8% below list price.

dollar sign light bulbAny Realtor should be able to demonstrate how homes priced at, or slightly below, FMV actually sell for thousands more than those who "try it at this price for a while". If you are willing to carefully consider this concept and trust in the rules of the housing market, then you will be well ahead of thousands of homeowners who just cannot understand why their homes aren't receiving offers! Meanwhile...you'll be on your way to that new place to call home!

Is there a possible move in your future? For your rock-solid home value analysis and introduction to a strong, effective marketing strategy designed to position your home above the crowd...contact me today via e-mail, or by calling (502) 641-9802, for a 45 minute consultation.

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Topic:
Home Selling
Location:
Kentucky Jefferson County Louisville
Tags:
louisville listing
listing specialist
louisville homes for sale
home pricing
list price
home price
louisville home value

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Rainmaker
433,018
Stanley Stepak
Howard Hanna Gold- Avon Lake, OH - Avon Lake, OH
Realtor - Avon Lake, Avon, Bay Village, Westlake,

Even with the data and stats its the convincing sellers that is the hardest part.  They have a number in their head or a range and they cant see getting past it.  You have to get to the mind set of the person the minute you walk through that door. People only will buy homes that are priced like or below others.

Sep 09, 2010 09:48 PM #1
Rainmaker
63,165
Michael Ford
Coldwell Banker Heritage Homes - Marion, AR

Chris nice post.  I agree pricing is the most important thing that a home buyer can do to get the home sold.  Over pricing is a killer in today's market!

Sep 09, 2010 09:50 PM #2
Rainer
61,268
Chris Dugger
Real Estate Marketplace - Louisville KY - Louisville, KY
Louisville REALTOR

Stan & Michael - I see many sellers reluctant to price their homes fairly out of fear for the buyer who feels as though they're entitled to 3% off the list price. I see just as many agent attempting to change buyers' expectations as I do those of us trying to educate the sellers. Maybe one day we can take the 'game' out of home purchases!

Sep 09, 2010 11:43 PM #3
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Rainer
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Chris Dugger

Louisville REALTOR
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