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There REALLY IS a SECRET SCIENCE to Pricing Your House for Sale! (Especially in Miami!)

October 12, 2009

P R O P E R T Y   S E A R C H

R E S T I V O – H E C H T M A N    T E A M


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.

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