How to Advertise the House You’re Selling
Advertise It
Price It Right
It's important to thoroughly evaluate the market to determine the market value of your home. Here's why:
Properties that are priced right from the beginning typically sell for more in the end.
If you price your home too high, the home will stay on the market longer. The longer a home stays on the market, the less it will be shown.
Your property attracts the most interest when it is first listed, so it is crucial to price it correctly initially.
Should You Price It High Just to See What Happens?
Setting a very high price just to “see what we get” is never a good idea. Setting an unreasonably high price usually results in longer time on the market, which does not look good to buyers and will frustrate you. Many sellers ask about the price that Zillow or other real estate websites give for their home. These are not reliable because these sites are only taking into consideration very general demographics. My job is to determine the perfect listing price to get your home sold for the most amount of money, in the shortest amount of time.
What is My Home Worth?
Determining your home’s market value is one very important reason to use a real estate agent. I will do a comparative market analysis (CMA) to help you set the correct listing price. I look at recent sales of comparable homes, similar homes that are under contract, and homes that are listed in the same price range of your home. Then I compare features of the homes including the size, style, number of rooms, age of the home, amenities, condition, lot size and placement, and the location or neighborhood. (Note: the tax appraiser’s assessed value of your home has nothing to do with the market price.)
Risks of Overpricing Your Home
Taking Longer to Sell
Houses priced above fair market value take longer to sell. Pricing your property competitively will help your property sell in the shortest time possible and avoid increasing prolonged days on the market, which means a lot of lost revenue while the house sits idle on the market.
Missing Initial Selling Activity
The best time to capture a buyer is in the first weeks when sales professionals and buyer interest is the highest. Advertising and other marketing efforts can be neutralized. Marketing time becomes prolonged and initial marketing momentum is lost. Houses priced above fair market value take longer to sell.
Effects of Overpricing
Lower Levels of Brokerage Exposure; Lower Levels of Buyer Exposure
Agents will not show overpriced properties to their buyers. Buyers not working with an agent perform enough research to know an overpriced home and will not take the time to view that home.
Longer Days on Market
An overpriced property is perceived as 'stale' regardless if price reductions are implemented or if there is "room" for negotiating.
Difficulty with Obtaining Financing
Lenders base decision on fair market value. If a lender's appraiser determines the home to be above fair market value, and above what they are willing to finance, they may require a buyer to make up the difference in cash.
Perception that Home is Not as Desirable
Overpriced homes typically experience longer days on the market. Buyers interpret longer days on market to mean 'buyer beware.'
Pricing & Property Appeal
Fair market value pricing will enable you to reach 95% of the buyers searching in your home’s criteria. Just 15% above fair market value will decrease your buyer pool to 20%. The pie charts below show how pricing over market value decreases buyer appeal.
More than likely, the first place potential buyers will see your home is online. This is why I work hard to reach as many buyers as possible online, and strive to make the best impression possible through our online listings. When it comes to online marketing, many agents will try to convince you that they have some sort of secret weapon to market your home. The truth is, every agent's listings is syndicated by the MLS to thousands of websites automatically. If a buyer is house shopping, and your house is on the market, it is basically impossible for them to miss it. Typically, the factors that prevent a home from selling are price, the way it is inputted and the way it is displayed in the MLS.
The photos of your home directly influence whether or not a potential buyer will schedule a showing of your home or not. It is crucial that I take high quality, attractive photos of your listing showcasing the best qualities and features of your home. Because of this, I work with the top real estate photographers in the area to capture your home in the very best light. This is a service paid for by me. Never let your agent skimp on professional photos and post photos taken with a cell phone on the MLS.
If you need help selling your house, contact us today!