How To Price My Home?
Smart, competitive pricing is essential. When you price too high, your home stays on the market longer, prolonging the process and increasing your expenses along the way.
Home Seller Mistake No. 1: Pricing Too High
“I can always lower the price later if I don't get any offers.” That statement costs home sellers millions of dollars every year.
Yes, you can always lower your asking price, but that’s not a good strategy.
Time and time again, experience shows that sellers who list competitively from the start get a better price than sellers who list high and then go lower and lower.
Why? Psychology.
When you price too high, here's what buyers think:
“Wow, three price cuts in the last four months… There must be something wrong with that house.”
“With all the price cuts on this house, the sellers must be desperate. Let's offer them far below what they’re asking and see if they bite.”
Sound Pricing Strategies
A far smarter approach is to allow me to do a market analysis and then work together on setting the right price. We must avoid overpricing.
I look at the following two things when determining price mostly...
Similar homes, via a Comparative Market Analysis (CMA): I will provide a professional analysis that goes deep into stats about recent sales and current listings similar to your home in size, age, condition and features. Sales within the past six months are especially relevant.
General market conditions: Is it a seller's market or a buyer's market in your community? It's important to note that what's happening nationally may not reflect local conditions. I can explain the difference and clear up any misconceptions you may have.
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The Coffee Shop
This quaint coffee shop in downtown Milford, IA is the talk of the town. You must stop in for a hot or cold drink and enjoy the atmosphere of this eclectic cafe. Locals and visitors alike enjoy meeting at this town favorite.
The Family Diner
The Family Diner is Spirit Lake, IA is a local favorite! They offer up a large portion for small money, but whether you come early or late you may be in for a wait. With homemade bread and the largest sausage patty you have seen, The Family Diner is consistently delicious. They are open only for breakfast and lunch and closed two days a week. In my former career at Stylecraft, the family diner was definately a favorite when our friends would visit from North Carolina. They were always inpressed with the bread and rolls and corn beef hash.
Cheap vs high end quality. A buyer's perspective.
Here's the scenario. You are building a house or remodeling your house. Material costs are up. Labor costs are up. You ask yourself, where can I save a buck? Before answering this question, you must be careful, especially if your home is located in an area where other quality homes are built, whether on the lake, off the lake, or in higher valued developments such as golf course developments, etc. Growing up in construction and with a plethora of new construction and remodels under my belt, let me share with you some of the easy things that your future buyers will recognize when they are looking for quality.
1. One of the first things buyers of higher end homes will look for is to determine if the owner used hollow core doors. It's an immediate sign that the seller was looking for ways to save money (where else then did they cut back that I can't see???)
2. The second most obvious is the counter tops. Did the sellers spend for a quality granite, quartz, or other hard surface, or was formica used?
3. The third item that might stick out is the cabinetry. Do the drawers have dovetail construction with hardwoods? Did they use "soft close" drawers? Are there pull outs for the pots and pans?
4. Flooring is an easy one also. Was laminate used, or is it engineered or hardwoods? Does the carpet convey a quality feel and plushness? Is there a nice thick pad underneath the carpet?
5. Though there are many other items to look at, cheap vs quality lighting and plumbing fixtures are probably the next major focus.
There is nothing wrong with with using lower cost materials, especially when trying to keep a project within budget, especially when trying to build more house for less money. Just be aware that most buyers looking to spend in excess of $300k for off lake homes and $500+ for East Lake chain homes, and $1M+ for West and Big Spirit will expect the very best materials and finishes.
