Pricing is directly related to the length of time it takes to sell a listing and whether it may sell at all. Pricing is especially important in a buyers market. Below is information on positioning MA homes to sell in a declining market.
Recognize the Real Estate Market
Each real estate market is different. When you hear facts on the news, those almost always reference nationwide statistics. Your particular area may be very different. A local real estate agent can provide a CMA on your home which evaluates recent sales of comparable homes and renders an anticipated price range for your property. This figure may vary continually, so avoid referring to old information.
When reviewing the market report, understand that it is a range. Where your property falls within that range depends on the competition and your target time frame. As a home owner, it is normal to feel a sense of attachment to your property and the work that you have put in. Unfortunately, not all potential buyers will assign equal value to different features and upgrades. Anticipate that you will not recover the total amount spent on upgrades. Additionally, home prices may be impacted by short sales in the area, which are typically listed at lower prices and are still used as comparable properties. Market value is technically the price that a buyer is willing to pay for a home at the current time. It may not necessarily be close to your requirements or resemble what you originally paid for the home.
Positioning MA Homes To Sell In A Declining Market
Positioning a home above market value will lead to valuable time being lost. If the real estate market drops further during that time, the listing will actually be sold for much less than it would have if priced correctly from the beginning. Furthermore, home buyers usually have a negative perception of homes that have stayed on the market for an extended period of time. This can be difficult to overcome even if a listing drops in price later. Pricing too high can do more damage than good.
Words of Wisdom for Sellers
If the market value of your property is dramatically different than what you are willing to sell for, it may be better to keep a close eye on the market and wait for the market to increase rather than pricing high and letting it grow stale for an extended period of time. If you must sell and need to do so in a defined period of time, choosing a price appropriate for the real estate market and competitive with other properties will be crucial to accomplishing your target date. Time is money and overpricing may be more expensive than you realize.