Pricing your house to “ SELL” is a secret science ! Especially now ! Especially in Miami!
Just what is the SECRET SCIENCE to Pricing and Selling your House? Ever thought you should price it high to allow room for negotiation? If so, you are definitely not in the minority . Many sellers (and worse still, Realtors!) think that way… although the vast majority of homes that actually DO sell here in Miami, sell within 5-10% of their asking price.
Buyers who don’t do their homework waste valuable time submitting offers on OVER priced property… and don’t recognize (and therefore miss out on) the gems! They make low offers on anything and everything, and loose out to the savvy buyer who is well informed about market value… and ready to pounce. As a seller, not only is it counterproductive to price a house high, but doing so can position you to chase-down the market…
Pricing a property above market value encourages procrastination on the part of a buyer. “Shoppers” (as opposed to ‘buyers’ ) will submit low-ball offers regardless … infuriating a seller.
Pricing your house competitively will encourage offers. The tools are all there for you: Buyers can access EWM’s “Facts and Trends” through MiamiRealEstateCafe.com , and buyers and sellers (both) can access current sales statistics throughout Miami Dade and South Florida. You can check sales data and price per square foot, sift through types of property (single family homes/condos), location, areas, looking back weeks or months, pulling specific property sizes or price ranges. The internet: an invaluable tool! Having a knowledgeable REALTOR in your court is an even MORE invaluable tool!
A knowledgeable Realtor can provide you with recent sales, property values in your neighborhood, properties currently under contract to close, expired listings (often as a result of being overpriced), tax history and appraisal figures, comparable homes currently listed for sale (and therefore competing with you for buyers), current market values and conditions, and pricing guidelines.
Although the amount a seller ” wants” is relevant (particularly to the seller), pricing should be based on value and market conditions to get the top sales price. A seller’s wants or needs are secondary to what the market will bear. A buyer will pay according to what they can afford, their perceived value, and the amount their lender will finance based on the appraised value. Comparable recently SOLD homes impact appraised values in the neighborhood. Pricing a property ABOVE the appraised value necessitates finding a buyer who is not only willing to pay cash, but who is also willing to overpay. Believe me, a “for sale” sign in your yard, and buyers traipsing through your house week after week, gets old VERY fast. Price it correctly. Create a ‘buzz’… with prospective buyers vying for the opportunity! There’s a different (positive) energy when value and price mesh! Buyers make better (meaning more “solid”) offers on well-priced homes, knowing (fearing!) that someone else will outbid them … and grab it away. In my experience, competitively priced homes sell for more money than their overpriced counterparts (who add too much wiggle room to negotiate)!
Who isn’t looking for a ‘deal’? Regardless of how you price your house, you WILL get ridiculously low offers. Why? Some buyers think they ‘should’, especially in a ‘buyer’s market’. Others want to give it a whirl. Some people have misconceptions … are minimally motivated …or are just shopping! Expect that. But… by pricing it right, you’ll attract buyers… both right buyers and wrong buyers. REAL BUYERS will understand the market and the value of your property. The only buyer who matters is the REAL buyer. That’s the one you want!
Want to stay updated on Miami real estate information, subscribe below to receive my blog posts directly to your inbox. If you are wanting to buy a home …or condo… in Miami please give me a call: 305 793-1365 or send me a note here. If you are considering selling, and are curious as to the value of your house… Just ask. Someone’s dream house is yours…. and we can sell it.