The often heard saying of location, location, location, should really be altered to price, condition, and location with price being by far the most crucial factor.
Location and condition are definitely important factors when selling a home, but it is the price that sells a home. A home in a good location will sell at a fair price, and a home in a bad location will ultimately sell at a fair price, it just will not be as high as it would be for a great location. A home in the most desirable location in the world will not sell at the wrong price. The same can be said for the influence of a home’s condition.
But neither location or condition will sell a house. Only one thing does that – price.
Maybe you did not listen when your were told that you were pricing your home above the market, or perhaps you got upset at the potential buyers who commented that your home was over priced and did not make an offer
When the showings stopped completely, you might have accused your agent of not doing a good enough job.
Many sellers only need to look in the mirror to find the party at fault.
It is all about the price – the overriding reason why a home does not sell. Whatever the reason is that a home is not selling it can ultimately be rectified by adjusting the price.
Consider The Comps
“Comps” are comparable homes in your neighborhood that have recently sold – within the past 6 months – or are currently for sale and under contract. Comps are the most important factor in pricing your home. Comparable homes ned to be viewed in conjunction with local market conditions, including the supply of for-sale homes relative to buyer demand and factors such as the absorption rate that measures the rate of inventory turnover.
Adhering to the basic laws of economics, when inventory levels are low the price envelope can be pushed but not to a point where it defies market data.
Price To Appraise
Sold comps carry extra weight, because your sales price will be subject to an appraisal, unless your buyer agrees to pay cash or waives any appraisal contingency. The appraisal of your home will be based on sale prices of sold comps. If the appraisal doesn’t support your contract sale price your deal could be in jeopardy.
Just remember the listing price of a home can not be justified by the following:
– Price you paid for your house
– The amount you want to net from the transaction
– The price that homes in your neighborhood sold for in years past
– The amount you have spent on repairs, maintenance and improvements
Wallingford PA Real Estate – Wallingford, PA 19086