One of the biggest concerns for any homeowner looking to sell their house is price. Asking ourselves “How much is my home worth?” is probably one of the most common questions in the real estate industry — and it’s an answer that can be defined with a little research and the use of a qualified real estate agent. But what happens if you are in a hurry to sell your home? What if you’re looking to get more than what your home is valued at? In this article, we’ll show you how price can affect your home’s sale and what you can expect through pricing tactics. Keep in mind however, we are using hypothetical examples to demonstrate our point and it’s still advisable to talk to a real estate agent before deciding on a price for your house.
Our Example House for Sale
Let’s say you want to sell your house. It’s valued at $700,000, and it’s located in a prime area that draws a lot of buyer attention. Your house features modest amenities that are similar to other homes for sale in the area and is in fair condition.
Pricing Your House at Market Value
After talking to your real estate agent, you’ve decided to list your home for market value: $700,000. In normal market conditions, you might see your house sit on the market for 60-120 days. Since your home is priced to it’s estimate value, you will probably get moderate attention from buyers. In the first few days (if not weeks), you’ll get a lot of agents showing your house to prospective buyers. Some buyers may leave feedback on what they liked and what they didn’t like. If you are in a hurry to sell your property, you might make adjustments according to the feedback you’ve received. If you are willing to be patient, you could receive an offer within the normal time frame (60-120 days). Typically, a home buyer will make an offer 10% below your list price. From there, you can either accept the offer or negotiate for a higher offer.
- Sold for: $630,000
- Time to Sale: 2-4 months
Pricing Your House Below Market Value
If you are looking to sell your home quickly, one possible solution is to sell your house below market value. Instead of listing your home for $700,000, you could jump onto the market at $615,000. As a result, real estate agents (and buyers) in the area will quickly notice the deal and immediately begin looking at the property. You’ll see a lot of buyer activity from the moment you list your house for sale, and you might receive an all cash offer from a buyer who wants to seal the deal before anyone else. With plenty of offers coming in, it could trigger a bidding war and you could play the field. Your agent could let one buyer know that they received a higher offer and if they really want the house, they should make another bid. If successful, you could sell your home for an increased value. However, it is a risk. If the market isn’t “hot” with buyers, you might have zero luck selling for a higher value.
- Sold for: $635,000
- Time to Sale: 1-14 days
Pricing Your House Above Market Value
If you’re willing to be patient and are looking for a cash return, you could list your home above market value. The list price will be dependent on what you are looking for, but it may require added steps to getting your property sold. To successfully sell your house for above market value, you will need to shape buyer perception and show them that your house is worth the price tag. One of the easiest ways is through staging techniques. By removing clutter and decorating the house to fit a buyer’s needs, you could grab their interest. You will need to create focal points that demonstrate value, such as space and amenities. To properly stage your house, it’s best to talk with your real estate agent. In addition, you will need to make sure everything is in good condition and repaired before going on sale. We recommend getting a home inspection before you list your house. That way, you know there aren’t any possible flaws that could break negotiations later on. Again, your home could sit on the market for a longer time period and have few offers coming in.
- Sold for: $725,000
- Time to Sale: 4-8 months
Selling Your House in Summit County, CO
As we mentioned before, each of these scenarios is hypothetical. Local market conditions and economical changes are vital factors that could shape a buyer’s purchase power and change your ability to sell. It’s always best to talk with one of our real estate agents, who can break down the market for you and give you a time table depending on your needs. If you’d like to learn more about selling your house in the Summit County area, download our free home seller’s eBook: