Occupancy Status – The best type of occupancy status is a vacant home. It is always easy to show. No appointments are necessary and no roadblocks are in the way. Usually the worst type of occupancy status is an uncooperative tenant.
The more people who get into a home, the quicker it will sell for a higher price.
Type of Sale – Transactions that require third party decisions – short sales, probate, relocation, auction etc – may be overlooked by potential buyers because of the red tape involved with third party approval.
The less decision makers there are in a transaction, will net more showings and offers.
Condition of Property – Homes that are in excellent condition (highly upgraded, recently updated and well maintained) will produce lower days on market. Homes that are in poor condition, do not qualify for financing will produce a lower net (cash only price!)
Maintain your home’s systems on a regular basis. Deferred Maintenance will hurt when it is time to sell.
Motivation of Seller – When a seller needs to sell a property YESTERDAY a lower price must be set to attract as many buyers as possible.
Do not wait until the last minute to list your home.
Market Forces – Pricing should be bracketed and in a range. Your listing professional should look at subdivision market activity over a twelve month period to determine several items:
1) Is inventory rising, falling or stable?
2) Are prices rising, falling or stable?
Once the above is determined for your home, then pricing should be set.
If inventory is rising and prices are declining, you will want to price your home at the lower end of the range.
If inventory is falling and prices are rising, you will want to price your home at the higher end of the range.
If inventory is stable and prices are stable, you will want to price your home in the middle of the range.
The above is called “absorption rate pricing”.
Solid internet marketing plans, such as mine, will not work if the above factors are on the low end of the scale.
An uncooperative tenant, short sale in poor condition in a declining market would be a very challenging sale. Even if priced appropriately for every challenge the property would present would not sell quickly and definitely not get top dollar.
On the flip side, a clean vacant home, staged properly, easy to show, excellent condition in an appreciating market with declining inventory will sell very quickly for top dollar.
Top dollar does not mean a price that the seller picks out. Pricing is a science and what I mean by top dollar is the “range” pricing mentioned before. A range that a professional with a solid pricing background (such an appraiser orexperienced REALTOR® would come up with.)
Overpriced homes become expired listings!
When you are interviewing your REALTOR® to list your home – ask them these questions:
What is your experience with pricing?
What types of listing transactions have you handled & closed?
What is your plan to market my home?