Pricing Your Home to Sell in the Eastern Sierra Market

When looking at pricing, I look at other comparable sales within the project or subdivision, how much inventory that is identical or similar, how long it has been on the market, what the recent sales have been and how many properties in a similar size are currently competition for your property. Then, we must compare the condition and location with your property. With 25% of the market either being a foreclosure or short sale, buyers are only willing to buy if they think the property is a great buy and they will not continue to lose value on it, once they close escrow. Interest rates are reasonable, but banks are difficult right now. Offering owner financing may set your property apart from other similar properties on the market. We must also deal with what the property will actually appraise for. So, it is good for you, the seller, to look at your property as a buyer. If you would buy it, it is probably priced right and presentable.

The Importance of Proper Pricing

  • Faster sale and less inconvenience
  • Exposure to more buyers
  • Increases realtor response
  • Generates more advertising/sign calls
  • Attracts higher offers
  • Means more money to seller

What really matters is how your home stacks up against the others currently offered for sale and recently sold in your neighborhood. Buyers will be comparing.

Common Reasons for Overpricing

  • Over-improvement
  • Need
  • Purchasing in higher-priced area
  • Original purchase price too high
  • Lack of factual data
  • Bargaining room
  • Move isn't necessary
  • Emotional attachment
  • Opinion of family and neighbors

Dangers of Overpricing

  • A major cause for concern is appraisal problems; overpricing can lead to loan rejections and lost time.
  • Most of the activity on your home will occur in the first few weeks. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical.
  • Buyers who have seen most available homes in their price range are waiting for the "right house" to come on the market. That's why if a house is priced right, it will sell quickly. The buyers are there waiting for it.
  • Don't start with a high price and the assumption that you can reduce it later. By the time you decide to lower the price, it may be too late, as interest will have already waned.
  • Even if your home is nicer than other homes in the same area, your house won't be picked for viewing if you set the price too high.
  • Buyers and agents become aware of the long exposure period and often are hesitant to make an offer because they fear something is wrong with the property.
  • Attracting the wrong buyers.
  • Fewer potentially qualified buyers will respond.
  • You might help sell similar homes that are priced low.
  • You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.

An agent has NO control over the market, only the marketing plan. Never select an agent based on price.