The most important aspect of listing your house to sell is pricing your house. It doesn’t matter how much marketing or exposure your house receives, if your house is not priced correctly it will stay on the market. The first week of a listing is very important. It is your chance to: get the word on the street about the house, do some open houses, some marketing. With all these in place, then your house will have the best opportunity to sell even in a slow market, granted it is priced accordingly.
The days of hoping to find a uneducated buyer are over. There is so much information out there regarding comparables and other houses selling which are similar, that is easily accessible.. All a potential buyer must do is pull out their smart phone and go on the Realtor.ca application and search for their information. Within a minute a buyer will know if your house is priced above market value or if it has been fairly valued.
Some houses will deviate from a comparable. These are houses which arenew, have current fixtures, have extra features such as new current flooring, new stainless steel appliances, and have a modern look to the them. Another factor is location. What are the amenities around the neighbourhood? Is it located on a dangerous busy street, or a nice cul-de-sac? These are things that need to be taken into consideration.
Many sellers think that they will find a buyer who will just like their house and pay more money. It may happen but not very often anymore. Many buyerswill prefer to spend less money, renovate a house to their specifications and use the extra money to put to some other future renovation.
Pricing is so vital to selling a house quickly. If a house stays on the market for months, it becomes stale. Buyers will ask why it has stayed on the market and question the price further. There will be a stigma attached to the house as well. Taking the house off the market and re-listing it also has some hazards that go along with it. Agents can easily search through a property history and see that the house was listed for a high amount. This also cause further stigma and speculation of the property.
The first few weeks (especially first week) is when a house sees its most traffic. If a house is not priced correctly, that traffic is lost. Even if a house reduces its price, it is too late, most often buyers will have already moved on and purchased another property. Those buyers will never come back.
The time of year, the number of houses in the market, days on market, interest rates, unemployment rates and the type of market (buyers/sellers) are all factors which affect the price of your house. If you are selling your house in a slow market you must lower your price accordingly before you list your house. Likewise if the market is thriving.
If you are in a sellers market you may want to price your house lower than the comparables to create a multiple offer situation. In some cases this may work, and could enhance your houses appeal, effectively gaining you more profit. This however a risky angle in a slow market. There are just too many other factors to go against you when there are a lot of listings of not enough buyers to create that type of demand you will need for t his strategy to work.
You must think of your house as a commodity but people don’t think of them as commodities because they attach so much emotion with their house. If apples sell for $1 why would you buy another apple that is the same for $2. There better be some apple juice that comes with it or people will look in another isle for the apples that are selling for $1.