Pricing a property correctly is the most important factor in getting it sold. When valuing a property, the procedure most commonly used is a market analysis that compares the subject property to comparable properties that have sold nearby. It is crucial to use precise market data when analyzing comparable properties. This means taking into consideration characteristics like square footage, number of bedrooms and bathrooms, pool, spa, vicinity to major roads, views, condition and quality of finishes.
When looking at sales statistics, you must be sure to consider the selling prices, not the asking prices. Active listings show the asking price. The asking prices that you see might not be indicative of what the homes are actually fetching on a closed sale price.
Find out the ratio of asking price to selling price in your neighborhood. This will give you an idea of how much negotiation room to give yourself. It is smart to leave some room for negotiation, but if you price too high above what the property is worth, then buyers won’t even consider your property.
Also know that sometimes seller closing concessions are built into the closing price. For example, while it might seem a particular home closed for $300,000, if the seller provided 5% concessions towards the buyer’s closing costs, then this is effectively a sale of $285,000.
When considering price, it is also important to look at how the competition stacks up and how much of it there is. If there are not a lot of homes available in the neighborhood, you might be able to get more for the property than you would if there were many similar homes available at the same time. This is simply a matter of supply and demand. Put the work and discipline in pricing your property correctly, and will sell in no time.