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Putting the right price on a property to get The Most Money, The
Quickest Sale, with The Least Amount of Problems is extremely important
and is the key to a successful sale and closing. An over priced
listing can sit for months being used as a guage to measure against
more reasonably priced properties. Monthly expenses like mortgage,
taxes and utilities will certainly eat in to any kind of profit
that may otherwise be realized.
If an offer to purchase were accepted, the property still has to
be appraised. Financing is only available on a value that is equal
to or less than the selling price. In this instance, the buyer will
not pay more than it's worth so it comes down to the seller to reduce
the price to make the sale go through or lose it.
A property that is on the market too long becomes a target. If the
seller becomes or is motivated to sell they will start dropping
the price and normally end up accepting a price lower than the last
reduced price. In many cases they end up taking much less then the
market indicates. Had the property been priced accurately in the
first place they would have gotten market value or more. Leaving
a lot of room to negotiate is not the way to go. It's like putting
a quater in a slot machine and hoping you win.
Below is a list of items and explanations on the process of pricing
a home for sale and how a fair market value can get the right price
for the property. In most cases buyers and sellers are satisfied
with the price which leads to a successful closing.
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There are 4 main factors that affect the sale of a property:
Location - You can't move the house.
Price - This is the main reason a property won't
sell.
Market Conditions - Have an influence on the value
of a property.
In a sellers market the selling price
will normally be close to the asking price. Here, there are more
buyers than properties to buy. In some cases, the selling price
can be equal to or more than the asking price, depending on more
than one offer coming in at the same time. Time on the market is
normally short. Buyers act quickly to avoid losing out.
Conversely, in a buyers market, where
there are more available properties than buyers, the selling price
will be lower than in a sellers market and time on the market can
be very lengthy. Buyers will take their time looking around before
they buy and can negotiate a better price.
In a balanced market where there is a
similar number of buyers as there are homes available, the selling
price and the time on the market are much more reasonable.
Competition - How many similar properties are you
competing against.
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- Than putting a sign on the lawn
- An ad in the paper
- and waiting for the phone to ring
In any type of market the sale of a property is dependent on it
being exposed to as many buyers as possible. Our Multiple
Listing Service® (MLS®) is designed to get the maximum
exposure for a listing. For Sale By Owners and Exclusive Listings
(listings that are exclusive to the listing company and not shared
with others) make up a very small (single digit) percentage of the
properties being sold. With more than 600 REALTORS® working in Metro,
using the MLS® System, the chances of securing a buyer are greatly
increased. We work together and share our information, searching
for a buyer who may be interested in a property.
For Sale By Owners can bring unwanted
visitors to your home. It costs money and time to promote the property
with ads and open houses. People will drop by unannounced at all
hours of the day or night and they have not been qualified to ensure
they can afford the property.
Exclusive Listings in todays markets have
not been very successful. All REALTORS® have the ability to list
properties exclusively but only a handful will do it because it
does very little in helping to sell the majority of houses. If we
take an exclusive listing which is not exposed to the MLS® system
and therefore we would reduce our commission. If we reduce our commission,
we can't afford to market the property properly. If we can't market
it properly, the seller loses many opportunities to sell. We can't
sell what we can't show.
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As always, first impressions are lasting ones. If you want to impress
someone, you put your best foot forward. The same is true in selling
properties. If it's not priced right for the current market, doesn't
show well or needs a lot of work, the number of buyers who may be
interested, becomes very small or none at all.
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I help you to determine a competitive price
by doing a complete analysis of your property;
Comparing it to those properties that:
Are
currently
on the market |
Have
recently
been sold |
It is important to know what properties are currently on the market
as well as those that have recently sold. The condition of these
homes
in comparison to yours, the length of time they were or are on the
market and knowing what the current trends are at the time the
listing is put on the market, all play a vital part in determining
the right
price. I use these items as well as search for features in each
of the
comparables that may affect the final selling price.
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Marketing now a days is a key factor in securing a sale on any property.
Today, we have many forms of advertising to work with such as signage,
newspapers, catalogues, radio, television, flyers and now the internet.
All forms work, some of the time. I use all of these forms at various
times, depending on market conditions and where buyers seem to be
searching at that particular time. Time of the year, market conditions,
trends and competition for a property help me to determine the best
places to advertise at certain times.
I work with a large inventory through our MLS® System, talk to other
top producers and use the latest technology available to our industry
to be as effective as possible in order to get a sale.
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On average, 60% of the Homes listed
will sell during the original listing period.
40% will not sell
Of any 10 homes listed, 4 will
take
longer to sell or won't sell at all.
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On average, people look at
12 homes
before they buy
This means 11 other homes
are competing against yours
It's important to know how your property stacks up against the
competition. Very few people will buy the first home they visit.
They will compare each home looking at location, price, condition
and special features that set one apart from the rest.
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The Most Money
The Quickest Sale
With The Least Amount
Of Problems
Ideally everyone wants to sell their home quickly with very little
hassle. In order to achieve this, we have to make sure all the
ducks are lined up and we can compete successfully against
other similar properties in the area.
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As mentioned above, there are many forms of advertising used by
REALTORS®. Some are better than others, depending on time of year
and market conditions. Below is a list of some of the methods I
use. Properly exposing a property to the market is one of the keys
to a successful sale.
Forms of Advertising:
Signage
MLS® System
Newspaper
HomeGuide
Cable TV
Internet
Websites
Flyers
Mail Outs
Referrals
Personal Promotion
In all of the above, signage and our in house MLS® System are the
most effective forms of advertising. A sign on a lawn will be seen
by people who are interested in a particular area and will prompt
calls. Our MLS® System is shared by all REALTORS® searching for a
property for a client. With more than 600 REALTORS® in Metro, one
or more of them may have someone interested in a property. We talk
to each other on a regular basis to help keep us informed of market
trends and what is available or coming on the market. The internet
is used heavily by people who begin their search for a home. Using
our www.realtor.ca
website, they can see what is available, drive by them and decide
if they want to view one or all of them.
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In order to Sell
Your House Once
I have to Sell
It Twice
It's important to establish the right price for a property. All REALTORS®
have access to the same information. Our data base goes back to 1985
and we are able to see what properties sold for in years past, market
trends and improvements made to properties over the years.
I have to be able to justify the asking price of a property to other
REALTORS® before they will introduce it to their clients as a possible
option. If it is over priced, it will be ignored or can be used as
a guage against other reasonably priced properties.
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How would you like to get a little more for your
property than the competition is getting?
By pricing your house a little less than the competition,
you will most likely get a little more for your home.
With all the data available to a buyer, a home priced a little below
similar properties will be considered and buyers are less likely
to offer a lower price because they would deem it to be more reasonably
priced. Negotiating the final price is easier and in most cases,
you will get more money.
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To make sure your house competes successfully
against the other homes in the area
And that it has every possible sales advantage
Therefore, I work from a check
list
that contains 20 items
It is important to ensure that your house is ready for viewing.
A potential buyer will compare it against all the other properties
they view. Since first impressions are lasting impressions, you
want yours to show up better than the rest.
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This is how you will get:
The Most Money
The Quickest Sale
With The Least Amount
Of Problems
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