Real Estate News from MicheleMamo.com. see all news...
Mortgage Rate Reverse Trend and Fall Off this Week...
Market Conditions...
Mind Your Star Spangled Manners...



Click to view my real estate newsletter.

current newsletter


 
Selling

What's My Home Worth?

Is Now the Time to Sell?

Sellers' Advice

Lowering Your Capital Gains Tax Obligations

Inexpensive Ways to Make a Great First Impression

Setting Your Price

My Current Buyers

Seller's Guide

Recent Local Home Sales

Fixed Rate Loan Calculator

Testimonials

Selling A Home in South Riding, Chantilly, and Fairfax, Virginia.

Selling? What You Should Know About Setting Your Price

If you're selling your house, one of the first steps you'll take is setting an asking price, a maneuver that requires the ability to find the perfect balance between attracting solid offers and ultimately receiving top dollar.

If you're working with a Realtor or other industry professional, you'll probably hear talk of fair market value, which typically means the highest value an educated buyer will pay. Fair market value is usually not the asking price.

Many agents will begin by conducting a competitive market analysis of your house and give you an estimate of the fair market value of your home, which is a range that will fluctuate depending on the housing market in your area and how much similar homes in your neighborhood are selling for.

If you're in a hot seller's market, like many communities throughout California and much of the West, you'll have the advantage.

"The market has been gaining steam, and the seller is taking control," said Nashat Benyamein, a broker in Long Beach, Calif. "Our average number of days on the market went from 30 days to 7 days or less."

While overpricing to some degree can be beneficial, you'll still want to be careful and avoid pricing your home too high, which almost always is nonproductive.

As you work with your agent and set your price, you'll want to recognize the factors that may prompt you to raise your asking price too much when it isn't warranted. Some of those factors include:
  1. Upgrades have been added. While many home improvements will help you recoup a good chunk of your investment, it won't give you 100 percent of what you paid. Also, the more personal the improvement - a swimming pool, a sunroom, purple floors - the less likely it will be viewed favorably by potential buyers.

  2. The need for money.

  3. You're moving to a higher-priced area.

  4. The original purchase price was too high.

  5. The seller lacks factual comparable sales to prove what the market value is.

  6. The seller wants bargaining room (listing more than 1-3 percent above market value actually reduces bargaining power).

  7. An unnecessary move, so you're not motivated. On the other hand, if you're in a neutral or buyer's market, like in Minneapolis, you'll really need to be cautious in setting your price.
"While a few select neighborhoods are experiencing good activity, the market generally is favoring buyers," said Mary Jo Oren, a Realtor in Minneapolis, Minn. "Price reductions are becoming more common and sellers are having a tough time adjusting to fewer offers, fewer multiple offers and increased market time to sell. Buyers are less emotional and not afraid to offer significantly less than list price plus ask for additional seller participation."

Generally, the asking price - the price advertised when it goes on the market - is set slightly higher than market value, usually 1 to 3 percent above market value.

You should assume that negotiation will be necessary to reach an agreement with the buyer. If you price your home too much above market value, you'll get fewer showings and offers in which the potential buyer is fishing to determine how low you'll go.

You'll want to establish your priority list: Are you more concerned with selling quickly or getting the most money possible? You'll also want to contemplate whether you think the agent's suggested price is reasonable and whether you'd pay that amount if you were a buyer.

Your agent, as well as friends, relatives, and neighbors, will help you point out your house's advantages and disadvantages that you may not have thought about because you're too close to the house and not as objective as others.

A third party will help you think of your house as a commodity - something with positive and negative selling points. At that point you can decide on a price that you deem competitive and in line what other houses in your area have sold for.

Written by Michele Dawson
August 19, 2002

Feel free to contact me if I can be of any service!

* 
* 
 
 
 
 
 
State
 
 Newsletter sign up?
 



Site Search:
Copyright © 2003-07 MicheleMamo.comContact Me  |  Privacy Policy  |  Terms of Use  |  Admin  |  Agent Center  |  MapSite by RealtyTech.com












Michele Mamo, Real Estate Agent serving South Riding, Fairfax, Chantilly, Virginia

Find A Home in Loudoun and Fairfax County
Featured Homes by Michele Mamo, Virginia Real Estate Agent

Selling your home in South Riding, Fairfax, Chantilly, or Ashburn
What's My South Riding Home Worth?
Is It Time to Sell my Virginia real estate property?
Sellers' Advice, provided by Realty Times
South Riding Real Estate Seller's Guide
Lowering Your Fairfax Real Estate Capital Gains Tax Obligations
Inexpensive Ways to Make a Great First Impression when selling your Northern Virginia Real Estate
Setting Your real estate price while selling your Fairfax, Virginia real estate property
My Current Real Estate Buyers
Recent Local Home Sales in Centreville and Leesburg
Testimonials, satuisfied clients of Michele Mamo, Real Estate Agent

Buying a home in South Riding, Fairfax, Chantilly, or Stone Ridge
How Much Virginia real estate Can I Afford?
My Dream Home would be listed by Realtor Michele Mamo of MicheleMamo.com...
Buyer's Guide, provided by Michele Mamo
Real Estate Buyers' Advice for Fairfax and Loudon County
Homeowners' Real Estate Advice
Michele Mamo helps you find The Perfect Neighborhood
New Home News

Relocating to Eastern Virginia
Local Loudoun and Fairfax County Information
Relocation Advice provide by South Riding real estate agent Michele Mamo
Moving Advice, from Realty Times
"Boomburbs" Define New Home Growth Patterns
Avoid The Sticker Shock Of Relocating to Virginia
Fairfax Virginia Community Profiles provided by Realty Times

Financing your new Leesburg, Brambleton or Stone Ridge home
Advice For Potential real estate Borrowers
How to Finance Unique Real Estate Properties
Applying for a Mortgage Loan? Start by Ordering Your Credit Report
Loan Application, get approved at michelemamo.com

Real Estate Calculators

About Michele, Real Estate Agent serving, South Riding, Chantilly, Fairfax
Contact Michele, Real Estate Agent serving, South Riding, Chantilly, Farifax

Real Estate News
Daily Real estate News & Advice
Industry Trends

Real Estate website MicheleMamo.com Privacy Policy
Real Estate website MicheleMamo.com Terms of Use