The single most important factor in selling a home is your asking price. In a declining market the asking price becomes even more crucial. Buyers are very apprehensive right now and generally won't overpay for a property (although I have seen some exceptions to this).
Sellers have the most leverage in a transaction when the property has not been on the market a long time. One question that every buyer asks is "How long has it been on the market?" Interested buyers adjust their offer price based on the length of time the property has been for sale. Price your property right from day one. This can be difficult when the market is moving quickly to the up or down side or if no similar homes have sold recently.
Supply and Demand
Home prices are largely determined by supply and demand. In 2004 and 2005 the supplies were low and demand was high so prices rose. In the last 3 years supplies have increased while demand has decreased so prices have dropped.
Real estate is local so consult with your Realtor and get supply and demand figures for your city as well as your neighborhood.
Tip #1 - Examine Comparable Sales
Find out what has sold in your neighborhood. Your Realtor can provide this information for you. The Sarasota real estate market was moving quickly to the downside. If available, pull homes that have sold within the last 3 months. You may have to go back further to get some good comps. It doesn't matter what sold 2 years ago.
Compare your home to the ones that sold. Make proper adjustments for condition, age, view, size, location and anything else a buyers finds valuable. Be realistic, the buyer is not going to pay you $50,000 for the $20,000 kitchen you just installed.
Tip #2 - Examine Your Competition
Look at the properties that you are competing with. Be objective and look through the eyes of a potential buyer. What is the best property at the best price? If your home is the best property and has the better asking price your home stands a great chance of selling. This is not rocket science. Provide the best deal through a combination of location, condition and price.
Tip #3 - Examine Expired Listings
Look at the properties that did not sell and try to determine why they did not sell. Was it condition? Price? Location? Learn from their mistakes and don't repeat them.
Tip #4 - Forget About How Much You Have In It
Buyers don't really care how much you have in the property. It is really your problem if you overpaid for the property or put too much in it. Buyers just look at all of the homes in their price range and locations of interest and pick the best option. It sounds harsh but it is reality.
Tip #5 - Make Adjustments
Even if you have done a great job in pricing your home you may have to make adjustments to your price to get it to sell. When prices are rising or falling quickly you will need to change your price.
Tip #6 - Don't chase the market down
This is why it is important to price a home right from the beginning. Let's say you can find a reasonable number of buyers for your home at $625,000 but you have it priced at $700,000. Three months later the market value of your home has dropped to $600,000 and you decide to lower your asking price to $675,000. Again, no action on your home. 3 months later and now you are very frustrated so you make a big price adjustment of $50,000 to $625,000 thinking that will do it. Unfortunately, the value of your home has dropped to $575,000. This is a classic example of chasing the market down. Had you priced it right from day one around $625,000 you would have actually netted more money.
Good luck trying to sell your home. If you would like help please contact us.