How To Price Your Home
If you’re reading this it’s likely you have questions about how to price your home. Although this post is geared towards Georgia Home Owners, suffice to say these principles apply in almost every market. To come up with How To Price Your Home you first need to know a few things.
You will need to find out how much homes have sold for in your neighborhood. Real Estate agents will call these homes “Solds” or “Comparables.” Appraisers and other paid evaluator use a 1-mile radius and basic square footage comparisons to start their evaluation. From there they can be more specific about things such as neighborhood, bedrooms, bathrooms, lot size, etc. Tools like Zillow are based on what the computer thinks is a comparable. Once you have at least 3 good sold comparables for your home you have a ball park of what you should get for your home… but you may still want to know…
HOW TO PRICE YOUR HOME?
High, low and average? Should you price it high and give the buyer room to negotiate or should you price it low and hope there’s a bidding war. The answer is unequivocally the latter! How to price your home? – AS low as you can! We recently did a study of 8 popular cities. In this study we found that the first 30 days was the absolute key to getting the most out of your sale. In every single instance (as the graph below will show) the seller who could sell their home in the first 30 days netting the absolute highest. In some cases more, Duluth Homes, for example sold for over listing price when sold in the first 30 days.
Every 30 days that a home fails to sell, the cost to the home owner is on average 3%.
Every 30 days that a home fails to sell, the cost to the home owner is on average 3%. That’s $6,000 a month on a $200,000 home! I can think of a lot of things to do with $6,000 and it sure beats waiting around. Now if you’re in a short sale situation, which is likely the case, then this applies doubly to you. It’s not as important to NET the most for you but rather you need to price it aggressively to sell it fast
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