Our Goal is to Sell Your Home
Often Realtors will tell you what you want to hear regarding what price to list your home for. This approach may lead you to list your home but ultimately will lead you to frustration and failure. Coast to Coast has a different approach.
We believe in understanding your needs and then telling you what you need to hear. Once we understand you and you understand the current real estate market, we can discuss how our superior marketing plan can help you accomplish your goals. There are far too many signs of failure in your community now. Coast to Coast and you will only be successful when we meet your needs and sell your home for as much as the market will yield.
How to Set a List Price for Your Home
The best place to start in considering how much you should ask for your home is receiving our FREE MARKET SNAPSHOT. This report will show you all of the recent comparable sales along with similar listings.
Setting the list price for your home is one of the most important aspects of selling your home and involves evaluating various market conditions and financial factors. During this phase of the home selling process, Coast to Coast Realty will help you set your list price based on your need and an understanding of the following:
• Pricing considerations
• Comparable sales and Market trends
• What your lender will accept if this is a short sale
• Unique market pyramid
• Offering incentives
• Estimated net proceeds
Pricing Considerations – Find a Balance Between Too High and Too Low
When setting a list price for your home, you should be aware of a buyer’s frame of mind. Consider the following pricing factors:
If you set the price too high, your house won’t be picked for viewing, even though it may be much nicer than other homes on the street. You may have told Coast to Coast to "Bring me any offer. Frankly, I’d take less." But compared to other houses for sale, your home simply looks too expensive to be considered.
It is also important to understand that buyer’s agents do not care about selling your home they only care about selling A home and earning their commission. In today’s market that means they show their buyer’s the lowest priced comparable homes first before they show any other homes. This means that if your home is priced to high it will most likely not even be shown. But don’t worry we have a UNIQUE STRATEGY to get their attention.
If you price too low, you'll short-change yourself. Your house will sell promptly, yes, but you may make less on the sale than if you had set a higher price and waited for a buyer who was willing to pay it.
TIP: Great Marketing, Good Show ability, Constant Communication, and Proper Pricing leads to success.
Price Against Comparable Sales in Your Neighborhood
No matter how attractive and polished your house, buyers will be comparing its price with everything else on the market.
A good indicator is a record of what the buying public has been willing to pay in the past few months for property in your neighborhood. Coast to Coast will furnish data on sales figures for those comparable sales and analyze them. However we have learned that in today’s market understanding recent sales is not enough. You must also understand where the market is trending, and other variables that will affect your success. Coast to Coast will help you understand the full market and come up with a suggested pricing strategy. The decision about how much to ask, though, is always yours.
Competitive Market Analysis (CMA): The list of comparable sales Coast to Coast brings to you, along with data about other houses in your neighborhood that are presently on the market, is used for a CMA. To help in estimating a possible sales price for your house, the analysis will also include data on nearby houses that failed to sell in the past few months, along with their list prices. However a CMA can only tell you where the market has been. A CMA alone is the basis for pricing that most realtors use for pricing. We have learned that you need more.
A MARKET TREND REPORT helps you to understand where the market is heading over the next several months. When pricing your home it is important to understand how many homes will sell within your time frame, how many homes are available for sale, how many homes will become available, and how many homes will not sell.
Effective Pricing Strategy
A CMA and MARKET TREND report will give you a true understanding of the value range of your home. This will enable us to recommend a listing price. Since no two homes are exactly the same and buyers ultimately will determine how much they are willing to pay for your home you need a pricing strategy.
If You Price High, Set a Schedule for Lowering the Price
Some sellers list at the rock-bottom price they'd really take, because they hate bargaining. Others add on thousands to the estimated market value "just to see what happens." If you want to try that, and if you have the luxury of enough time to feel out the market, sit down with your REALTOR® and work out an advance schedule for lowering the price if need be.
If there haven't been many prospects viewing your home after two weeks, you may need to lower your list price. If that doesn't bring any prospective buyers, you may need to lower your list price again. Plan on doing that regularly until you find a level that attracts buyers. Make a written schedule in advance, before emotion takes over and you're tempted to dig your heels in.
Offering Incentives to Hasten a Sale
Sometimes cash incentives are as effective as lowering the price, especially in the lower price range where buyers may be "cash poor." You may offer to pay some or all of a buyer's closing costs and discount points required by the buyer's lending institution.
If you haven't had much traffic through your house and you’re in a hurry to sell, you may want to add the offer of a bonus to the selling broker, in addition to their commission. An example of the wording for such an offer may be "to the broker who brings a successful offer before Christmas."
Estimating Net Proceeds
Once you’ve been given an estimate of market value by Coast to Coast, you can get a rough idea of how much cash you might walk away with when the sale is completed. This can be particularly useful when you start looking for another home to buy.
To estimate your net proceeds, from the estimated sales amount, subtract the applicable costs in the three sections outlined below: seller’s costs, buyer’s/seller’s costs and closing costs.
Seller’s Costs: Subtract the following costs as applicable.
• Payoff figure on your present loan(s)
• Broker's commission
• Prepayment penalty on your mortgage
• Attorney's fees
• Unpaid property taxes
Buyer’s/Seller’s Costs: Subtract the following costs as applicable.
• title insurance premium
• transfer taxes
• required repairs
• recording fees
• Homeowner Association transfer fees and document preparation
• home protection plan
Closing Costs: As far as closing costs are concerned, you and your eventual buyer may agree on any arrangement that suits you, no matter what local practice dictates. Coast to Coast will assist you in estimating what your final closing costs and net proceeds will be.