Wondering how to price your home to SELL… and still make a profit?
In the Greater Philadelphia real estate market, many homes are selling at 97% to 100% of the asking price. If you are thinking about selling your home, it is important to remember that the price you list your home at will dramatically impact how much money you will make on your home and how long it will sit on the market.
By interviewing at least two local Philadelphia real estate agents, you should get a solid understanding of your home’s fair market value. Your main objective should be to find a listing price that the current market will bear, but won’t leave any potential profit on the table.
Quick note: If you are interviewing multiple REALTORS, please beware of the agent that gives you an exceptionally high home valuation. Usually they just want to get the listing and hope that you will reduce the price later!
A few things to consider when pricing your home:
Unfortunately, time is not on your side when it comes to selling real estate. Research tells us that the longer a house stays on the market, the less likely it is to sell for the original asking price. Homes that are priced correctly tend to sell for 98.6% of the asking price in 30 days or less. Homes that have to reduce the listing price several times, often sell for 76% of the original listing price.
In areas of Philiadelphia with low inventory (i.e. very few homes for sale), homes that are on the market for more than a few weeks tend to make potential buyers nervous, thinking that there must be something wrong with the home because it didn’t sell in the first week or two.
When selling your home for the highest possible price, it is important to have it priced correctly so that you create a sense of buyer urgency — you want potential home buyers to walk into your home and think: “If I don’t make a full price offer on this home today, I will miss out on this home.”
>>> COST VS. VALUE
Pricing your Philadelphia area home to sell in a timely fashion (and for top dollar) requires some objectivity. It is so important not to confuse cost with value – in other words, how much you value your home versus what potential buyers are willing to pay for it.
When determining the listing price, don’t place too much emphasis on recent home improvements, because buyers may not share your taste and/or see the value in the improvements. For example, not everyone wants granite countertops, a surround sound system or that new shed in the backyard.
>>> YOUR GOAL
Our best advice is to keep it simple. Because time is of the essence, pricing at fair market value will help to create that sense of urgency with buyers so they will come to you with a strong offer. Also, keep your home de-cluttered and clean. Be flexible when agents want to show your home. Put some fresh flowers (or cookies) on the table so they will feel welcome!
We love helping homeowners sell their homes quickly and for top dollar and would be honored to be one of the REALTORS you interview to market and sell your home. Feel free to call anytime with questions or if you would like a complimentary home valuation.
Donovan Mitchell :: DM Real Estate Group :: 215-688-3863
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