Choosing the Right Price for your Home to make a Quick Sale
Choosing the right price is the most crucial step in selling your home. We will walk you through some tips and strategies to choose the right home price for the quickest sale possible.
Combination of Fair Market Value & Housing Conditions
This strategy revolves around a review of the housing conditions and your property’s fair market value to set a competitive rate. This requires you to extensively research the local real estate market of Quincy MA, alongside reviewing the national housing trends.
First and foremost, examine the inventory available to the buyers in the local real estate market, as a higher inventory will require you to price your home below the market value in order to reap a quick sale. However, if the market dynamics are in favor of the seller, you can choose a lavish price and still obtain offers.
Home prices are subjected to a constant and gradual rise, however, the yearly price gains are always the greatest. Be sure to examine these fluctuations while setting your listing prices.
Another element that you need to examine is the national mortgage rates, as lower interest rates will encourage buyers with the financial means to provide your listing price.
Lastly, you must conduct a comparative market analysis with homes that are similar to yours in terms of locations, property area and upgrades amongst others.
Start a Bidding War
Generally, sellers are never advised to underprice their house, however, if the goal is to generate fast cash with a quick sale, this tactic can help the seller a great deal.
Undercutting the price of the house by 5-10% will trigger a bidding war in your neighborhood, and the offers will start pouring in, ensuring a profitable and quick sale for the seller.
Sellers are advised to set their listing price at around 5-10% less than the market value of their house, and in a matter of days, they will find their house flocked with potential buyers, lining up to view the property. Sellers typically feel that they have willing left a certain amount of their profits on the negotiation table, however, this strategy is aimed at a quick sale rather than generating substantial profits. Underpriced houses sell quickly, typically within a week, and no longer than two weeks. This is a great strategy for sellers who are facing the expenses of massive repair and maintenance needs. They can simply reduce the market value and disclose the need for repairs, leaving the new buyer to attend to the repairs.
Plan B: Price Reduction Strategy
The right price is always the price that a buyer is willing to pay for your house, given its conditions, location and market value, amongst other factors. Sellers often fail to nail the right price from the beginning, and often, they end up reducing the price after being in the market for over two weeks. Sellers need to work with their agents on a Plan B that allows them to put into work a powerful contingency plan that reduces the price. Be sure to decide this price reduction with your agent ahead in time to avoid surprises and disappointments. It is advisable to test your listing price for two weeks, and then reduce the price if you fail to obtain any offers.
For any questions about the local market conditions on the South Shore and in Quincy MA contact Red Door Real Estate. We’ll be happy to walk you through your options.