Pricing decisions should be grounded in reality
rather than wishful thinking.
When the time comes to price your home for sale, you may be tempted to start
with the price you paid for it, add a healthy mark-up and call it a day.
Unfortunately, that strategy is unlikely to result in a true reflection of your
home's market value.
Here are six strategies to help you figure out how much your home is worth:
1. Abandon your personal point of view.
How much will a ready, willing and able buyer be willing to pay for your home?
Buyers don't care how much you paid for the home, how many memorable moments
you and your family shared in the home, how much cash you need for the down
payment on your next home or how much time and money you've invested in your
home's hardwood floors, fresh paint, lush landscaping or other improvements.
2. Get a couple of CMAs.
Invite at least three real estate agents to visit your home and give you their
opinion of its likely selling price. Ask for a "comparative market
analysis" (CMA), which shows the prices of comparable recently sold homes,
on-the-market homes and homes that were on the market, but weren't sold. The
on-the-market homes are the "competition" for your home. Ask the
agents why each home was included in the CMA and whether any other comparable
homes were eliminated from the CMA. Price recommendations based on CMAs aren't
gospel. Some agents will tell you to under-price your home in hope of sparking
a bidding war. Others will suggest a flatteringly high price to "buy"
your listing only to demand a price reduction a few weeks later.
3. Do your own market research.
Go to open houses in your area and try to make an impartial assessment of how
those homes compare to yours in terms of location, size, amenities and
condition. Assuming all the asking prices were the same, would you buy your
home or someone else's?
4. Calculate the price per square foot.
The average price per square foot for homes in your area shouldn't be the sole
determinant of the asking price for your home, but it can be a useful starting
point. Keep in mind that various methodologies can be used to calculate square
footage
5. Consider market conditions.
Are home prices in your area trending upwards or downwards? Are homes selling
quickly or languishing? Will your home be on the market in the spring
home-buying season or the dead of winter? Are interest rates attractive? Is the
economy hot or cold? Will you be selling in a buyer's market or a seller's
market? Is the local job market strong or are employees fearful of staff
reductions?
6. Sweeten the transaction terms.
Some buyers have needs that go beyond the bottom line. If you're willing to
close escrow quickly, you'll attract buyers who want to move in right away. If
you can offer seller-financing, your home will appeal to buyers who need to
stretch their financial resources. A lease-option can help first-timers who
need down payment assistance. The more creative and flexible you can be in meeting
the buyer's needs, the more success you'll have in pricing your home to sell.
ECKLAND PROPERTIES are Real
Estate Agents in Cape Town, South Africa servicing properties throughout
the Western Cape and more specifically the Northern Suburbs of Cape Town.
Specialising in the rental and sale of residential property in "Goodwood,
Parow" "Type: house, vacant land, apartment, flat, town house."
Email us for more properties in other Towns!!!!!!!!!!!!
