HOME PRICING STRATEGIES FOR THE ST. LOUIS METROPLEX
Getting top dollar for your Illinois or Missouri home requires research, home preparation, and expert marketing. Here are important tips to help you price your home correctly!
Facts About Your Home Value
The amount you originally paid for your home does not have a bearing on current market value.
Your property tax assessment is not an accurate indicator of current market value. Tax assessment valuations are conducted infrequently, but home values change continually!
Your homeowner’s insurance policy is not suitable for market value, because the insurance company is estimating the costs involved to rebuild your home. Replacement cost is not the same as resale value.
Online home value tools offer a guideline, but they cannot take individual factors into account. Your home may have features and amenities that increase its value. If your home needs repairs, the value may be less than the online estimate.
A Comparative Market Analysis (CMA), prepared by a professional REALTOR®, is the best way to determine the price range of your home. The CMA is a local analysis of recently sold homes with features similar to yours. The very latest home sales data is used in the CMA.
Your REALTOR® provides information and expertise, but you decide the listing price. Many home sellers are tempted to “test” the market with a higher home price, but this idea can backfire for several reasons.
The Pitfalls of Over-Pricing Your Home
1.Over-priced homes end up competing with other homes that offer more amenities for the money. This creates an immediate disadvantage.
2. Over-priced homes are often ignored by potential buyers and their brokers. New listings appear on the market daily; if you do not capture market attention in the first 30 days, it becomes harder to sell your home.
3. Homes that linger on the market face changing conditions. For example, mortgage interest rates can increase and discourage some home buyers.
4. Homes that are over-priced face problems with bank appraisals. If the appraisal fails to justify the sale price, the bank may deny the buyer’s mortgage application.
5. Over-priced homes may end up being discounted and selling for less than the original recommended price range. Sellers of over-priced homes also face more buyer contingencies.
Advantages of Pricing Your Home Correctly
1. Homes that are priced right gain immediate attention. A sense of urgency is created among serious home buyers and local real estate brokers, which leads to more showing appointments and quicker offers.
2. A home that is priced correctly, and strategically marketed, will draw attention away from similar homes. This gives you a competitive edge.
3. A sense of competition among buyers can lead to multiple offers. This can actually increase the final sale price of your home.
4. Bank appraisals are more likely to be in line with your sale price, meaning fewer chances of your deal falling through.
5. If your home is priced right, you are in a stronger negotiating position. This means fewer contingencies and less haggling from your prospective buyers.
Your home should be in the best possible condition prior to entering the market. Take care of any deferred maintenance, but do not excessively remodel. Not all projects offer a good return for the money. We will help you identify the areas in need of attention.
Curb appeal counts! Some buyers will not look any further if the home exterior and lawn appears unkempt, no matter the price.
Your home interior should appear fresh and bright. Polished floors, new carpeting, freshly-painted walls, and attractive window treatments can give a new look for modest cost. Windows should be clean and allow plenty of natural light.
All home mechanicals should be in good working order. If your home has an older hot water heater, furnace, or appliances, consider offering a home warranty.
Home staging can make your buyers say “wow” the moment they walk in the door. This includes details such as place settings at the dining room table, and new guest towels in the washrooms. In some cases it’s appropriate to rent furniture or re-arrange your room layout. We will give you constructive, affordable advice to help you maximize your return!
We will tailor these suggestions and more for your home! At Star Realtors, we provide you with a comparative market analysis and pre-listing consultation free of charge.