In a market with ten months or more of inventory it is extremely important to correctly price your home. If it is even slightly overpriced it will most likely prevent it from selling. Remember, ten months worth of inventory doesn’t mean that your home will sell in ten months. It’s not like we will run out of inventory in ten months so that your home will sell because it is the last one on the market.
What happens is that homes are always entering and leaving the market. The homes that are priced to sell move fairly quickly and are replaced by others. The overpriced houses can sit on the shelf forever without a sale. In Wasilla and Palmer, (not the whole core area), the median sales price for the 1,005 homes sold in 2006 was $225,000. The median asking price currently is $259,950. Any home that is priced $35,000 too high is going to be on the market for a long time. In fact, if a house with a market value of $225,000 is actually put on the market at that price, it will likely sell in 60 days or less. However if the same house is marketed at $260,000, it will likely take a year or more to sell it if the owner doesn’t lower the price.
Five common methods to determine the price.
1. Some people choose the price of their home based on the amount of money they want to walk away with. To them, it doesn’t matter how much the house is worth, they need a certain amount in their pocket and that is how they determine the price.
January 26th, 2007 at 11:13 am
Above states that One of the five common methods to pricing our home is by the total assessed value plus 20%. Why the 20%?
January 26th, 2007 at 2:59 pm
Emma, I really don’t know where the 20% came from, but I hear it all the time when talking to sellers. Sometimes it’s 10% but usually 20%.
I think you can see that this post is “tongue-in-cheek”, and that these are not good methods to find a price.
This post http://www.valleymarket.com/2006/12/29/how-to-price-your-home-to-sell/
and this one
http://www.valleymarket.com/2007/01/09/sell-your-housequickly/
talk about the right ways to find a price for your home.
June 16th, 2008 at 4:31 pm
[…] a previous article we looked at Five Common Methods To Determine Price. In this post I will discuss how to come up with a price that will actually result in a sale. After […]
June 16th, 2008 at 4:53 pm
[…] ended up just putting their sign on the house, and it?s been there for 4 months.? Many of them used these methods to price their home.? Obviously, this doesn?t […]