Looking to Sell
Criteria That Determine Value
- Age, Condition
Importance Of Proper Pricing
- Faster Sale
- Less inconvenience
- Exposure to more prospects
- Increased salesperson response
- Better response from advertising and sign calls
- Attracts "cleaner" financing
- Attracts higher offers
- Means MORE money to sellers
- Avoids being "shopworn"
Comparable Market Analysis
The single most important factor in the marketing of real property is the opinion of value. Property that is priced too high will sit on the market and become "shop worn." Serious buyers who may have purchased it at a realistic price will not seriously consider it; a potential sale will be lost to other realistically priced property. Conversely, property that is priced too low will sell quickly, but the seller will not have realized the true value from the sale.
Ideally, the property should be priced at COMPARABLE MARKET VALUE. Studies continue to show that property listed for too much have the following probabilities of sale:
- 5 percent over market value has a 20 percent probability of sale.
- 10 percent over market value has a 30 percent probability of sale.
- 5 percent over market value has a 50 percent probability of sale.
Properties priced at market value have a 95 percent (95%) probability of sale.
The method most often used in evaluating single family homes is the COMPARABLE METHOD. Property is worth what a buyer is willing to pay for it and this is determined by the basic laws of supply and demand. These two factors are evaluated by comparing the home with other, similar homes that have sold within the market area, with appropriate consideration given to amenities, lot size, condition, and financing terms. The resultant range or figure is what is know as the COMPARABLE MARKET VALUE of the subject property.
Preparation for Showing
- First impressions are lasting. The front door greets the prospects. Make sure it is fresh, clean, and scrubbed looking. Keep the lawn trimmed and edged and the yard free of hoses, toys, and refuse.
- Decorate for a quick sale. Faded walls and worn woodwork reduce appeal. Why try to tell prospects how your home could look when you can show them by redecorating? A quicker sale at a higher price will result. An investment in new kitchen wallpaper will pay dividends.
- Let the sun shine in. Open draperies and curtains and let the prospects see how cheerful your home can be. (Dark rooms do not appeal and seem small.)
- Fix that faucet! Dripping water discolors sinks and suggests faulty plumbing.
- Repairs can make a big difference. Loose knobs, sticking doors and windows, warped cabinet drawers, and minor flaws detract from home value. Have them fixed.
- From to bottom. Display the full value of your garage, attic, storage rooms, and other utility space by removing all unnecessary articles. Brighten dark, dull rooms by painting walls.
- Safety first. Keep stairways clear. Avoid cluttered appearances and possible injuries.
- Make closets look bigger. Neat, well-ordered closets show that space is ample.
- Bathrooms help sell homes. Check and repair caulking in bathtubs and showers. Make this room sparkle!
- Arrange bedrooms neatly. Remove excess furniture. Use attractive bedspreads and freshly laundered curtains.
- Can you see the light? Turn on all your lights for an evening inspection or on a cloudy day.