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HOW TO PRICE TO SELL AND STILL MAKE A PROFIT
The asking price you set for
your home
significantly
affects
whether you
will profit
in the sale,
how much you
will profit
and how long
your home
will sit on
the market.
Your real
estate
agent's
knowledge of
the overall
market and
what's
selling - or
not selling
- will be
invaluable
in helping
you
determine
the price.
The
objective is
to find a
price that
the market
will bear
but won't
leave money
on the
table.
Here are
some points
to consider:
Time. Time
is not on
your side
when it
comes to
real estate.
Although
many factors
influence
the outcome,
perhaps time
is the
biggest
determinant
in whether
or not you
see a profit
and how much
you profit.
Studies show
that the
longer a
house stays
on the
market, the
less likely
it is to
sell for the
original
asking
price.
Therefore,
if your goal
is to make
money, think
about a
price that
will
encourage
buyer
activity
(read: fair
market
value).
Value vs.
Cost.
Pricing your
home to sell
in a timely
fashion
requires
some
objectivity.
It's
important
that you not
confuse
value with
cost - in
other words,
how much you
value your
home versus
what buyers
are willing
to pay for
it. Don't
place too
much
emphasis on
home
improvements
when
calculating
your price,
because
buyers may
not share
your taste.
For
instance,
not everyone
wants
hardwood
floors or
granite
countertops.
Keep it
simple.
Because time
is of the
essence,
make it easy
for the
buyers.
Remain
flexible on
when your
agent can
schedule
showings.
Also, avoid
putting
contingencies
on the sale.
Though a
desirable
move-in date
makes for a
smoother
transition
between
homes, it
could cause
you to lose
the sale
altogether.
THE KIM GROUP (309) 208-2898
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