My Real Estate Blog

It has long been a motto of real estate, and the saying goes, "location, location, location." It's what sells a property, they say. But recent times have brought to light that the real deciding factor on how fast, or even if, your home sells all comes down to price.

First, homes that have been on the market a considerable time lose their competitive advantage. A buyer may see a home hasn't moved, and may come in with a low offer price. Depending on how desperate the seller is, they may feel obligated to take this offer.  

Take a good, hard look at the area comparables. How much have homes been selling for in your area? How does your home compare in terms of amenities? Your real estate agent can be invaluable when it comes to correctly pricing your home. Seller's judgment can be easily prejudiced by emotional attachment to the home and hopes for certain profits.

If your area is experiencing a strong buyer's market, then you need to be even more competitive. You may need to price your home a little lower than you had hoped for. If you are in a seller's market, you can generally ask for a bit more in the asking price.

One tried a true method a Realtor will use to snowball interest in a home is to actually under price it. If your home is in a desirable location and you undercut the competition, you may find yourself fielding multiple offers.

Have your upgrades priced you out of the competition? Renovating your home with upgraded fixtures and granite counters can be very appealing. But if homes in your neighborhood are basic models with Formica counters and few fancy upgrades, you may have a hard time finding a buyer who will shell out more. This is one way location is very important. You must make sure you're aren't overpriced for your location. Depending on your area, you may have to eat the costs of some of your previous upgrades in order to get a sale.

And finally, are you being greedy? Sometimes people have a magic number in their head of the profit they'd like to make by selling their house. They already have that money spent on the upgrades and toys they'll buy for their next home. But selling is a time to be realistic.