As the inventor of the Pet Rock can attest, people will buy anything if the concept is novel and the price is right. With bigger ticket items, the proper price is critical to success.
Too low and you may miss out on thousands of dollars in potential revenue. Too high and selling your home will be harder than getting that Pet Rock to roll over or shake a paw.
So how do you get it right? That will depend somewhat on your circumstances, but there are a few key principles that wont steer you wrong.
One challenge in pricing is that, in many ways, your home is like your child: A source of pride and emotional attachment. Theres nothing wrong with that, but it can affect your objectivity when it comes to assessing value, and its one reason that a licensed realtor can be invaluable in the sale process. Not only can they render an objective opinion based on their experience, but they can also provide you with a Comparative Market Analysis. This report indicates what similar homes in your area have recently sold for and recommends a price range for your property based on local market conditions.
Its not easy, but if you can stay detached and treat your home like a commodity instead of a child, it will pay off in the long run. And at least with the house, you know youll get a return on your investment one day.
In an ideal world, you would list your house, move into a new home and tell your realtor to send you a cheque when your former residence sells. Thats fine if youre one of those people with a winter home in Palm Springs, but for most of us, our winter home bears a strong resemblance to our summer home. Thats why its imperative to factor in time when listing houses for sale.
If youre moving for a new job or have other time pressures to re-locate, youll need to adjust your sale price accordingly to avoid an awkward situation. Fortunately, your realtor has likely worked with others in a similar bind, so they can advise you on the ideal price reduction based on your time frame.
Even if your circumstances dont require a quick sale, keep in mind that the longer your home is on the market, the less desirable it appears to prospective buyers. So being too greedy at the outset, rather than heeding your agents advice, could backfire in the end. Of course, a realtor will never say I told you so, but a spouse may be less forgiving.
While there are a number of criteria that can influence the price of your home, probably the most critical one involves a simple question: Is the price you get for the place you live a price you can live with? In answering, you need to consider all the closing costs, calculate what will be left over and decide whether your net profit fits with your budget and future plans. If not, selling your home now might be like planning a New Years Eve barbecue in Red Deer: The right idea at the wrong time.
So whats the magic formula for pricing perfection? Ultimately, its about mastering your emotions, doing your homework and crunching the numbers. Maybe thats not as exciting as pulling a rabbit out of a hat, but it is more effective and, depending how long hes been in there, a lot less messy.