Setting the correct initial list price is one of the most important decisions that home sellers make in today’s market. The initial list price will impact both the amount of time a property takes to sell and the final sales price. Research shows that when a house is overpriced upon the first day of its listing, and subsequently requires price reductions, it will take up to three times longer to sell that house in the Houston and surrounding area real estate market compared to a house that’s priced right from the start.
When it comes to selling your home, Team Sadler believes that closing quickly and walking away with the highest price go hand in hand. Our goal is to work with you to achieve a quick sale as well as at the bottom line you’d like. The process begins with an extensive evaluation of your property and how it compares to similar sold properties. We also consider the area’s current market conditions before we offer advice on pricing your Houston home. Your Team Sadler Realtors’ agent will work hard to get your home sold – and we start by helping you reach a seller’s state of mind. See some of the steps outlined below.
Sellers will benefit from the professional advice of a Realtor when it comes to effectively pricing a property and understanding today’s market trends. A knowledgeable, skilled Team Sadler Realtor will offer expertise and guide our clients through today’s complicated process.
At Team Sadler Realtors we have developed specialized tools to help you properly price your property. We can give you up-to-the-minute information about the Houston and surrounding area real estate market, including specifics about what is happening in your neighborhood.
Contact us to learn more about the value of your home.
The Seller’s Checklist
When we sit down to review your home’s value following the market analysis, there are a few things to keep in mind. As an established local brokerage, we’ve sold many Houston area homes and we’ve learned a lot along the way.
Listed below are some of our findings:
☐ Listen to an Expert’s Advice on Pricing
Honestly, most people think their home is worth more than it is. It doesn’t matter if the market is up or down, people have a tendency to overvalue their own possessions. The reason you probably bought the home to begin with is because you valued it more than anyone else. Consequently, the same holds true in today’s market. The vast majority of buyers will not understand the justification of the higher price point based on how you feel about the home. While you reflect and cherish the memories made in your home, let your Team Sadler Realtors expert help you determine its value on the market.
☐ Understand That Asking Price Does Not Mean Sold at Price
As you compare the competition, be aware that those current asking prices don’t yet indicate a sold home. While you should know surrounding listing prices, don’t let them be the only factor in deciding your home’s sales price.
☐ Add to Your Bottom Line – Set the Price Right From the Beginning
Once you have decided to sell, it is important to list your property at the right price from the very beginning. Priced right from the beginning = quick sale, priced too high from the beginning = longer days on the market. Some sellers aren’t pressed for time, so they overprice their home and wait for buyers to bite, thereby thinking they can lower the price if it doesn’t sell. Statistics have shown that this strategy results in a lower final sales price. Pricing your home at a high price early on and reducing price over a long period of time will cause potential home-buyers to loose interest and ultimately result in a loss on final sale price. Buyers will begin to think something is wrong with the property resulting in home-buyers to pass on it. When home-buyers finally do come by to view your home, they will be ready to make low-ball offers based on number of day on market (DOM).
Food for Thought:
- Your $200,000 home is placed on the market for $205,000
- Buyers see today’s dollars and a good deal, you close quickly at $202,500
- Gain: $2,500
- Your $200,000 home is placed on the market for $220,000
- The home sits without buyer interest, so the price is lowered to $210,000
- Still too high for buyers who factor in the home’s days on the market, the home finally sells at $197,500
- Loss: $2,500
Verdict: It’s a gamble to overprice your home. Sure, you might hit the jackpot and find a home-buyer willing to pay, but more often than not, you are chasing a falling knife with inevitable price drops.
☐ Realize Home Upgrades are Debatable
It’s also important to remember that your home’s special upgrades don’t automatically translate to a higher price tag. Your pool can be viewed as a maintenance expense, and your $5,000 custom shelving could possibly just get you a blink from buyers. Remember: These upgrades may not be anything special to the ones buying the property.
☐ Think Like a Buyer
One of the most important mentalities to have when selling your home is that of a buyer. Buyers are comparing your home to everything else available at the time, so picture what would – and would not be – attractive about your listing. Your price should then reflect your findings.
☐ Avoid Seller’s Remorse
Sometimes homes sell quickly. That’s the goal, right? Well, even quick sales raise concern. If you end up with a quick sale, you might think you sold too low and find yourself having seller’s remorse. Just remember – if you reviewed the comps and considered the advice of your agent when setting the price, and if you look at all the other aspects of the contract (e.g. perhaps you got the lease-back that you wanted and thankfully the buyer didn’t ask for costly repairs), chances are you didn’t sell too low – you simply priced it right. Getting the sale done quickly will save you time (you won’t have to leave your home or get prepared for yet another showing!) and perhaps a quick sale will help you secure a contract (and a deal) on the home you’ve been watching. Don’t second guess over a quick sale if the total deal allowed you to walk away meeting your objectives.
Contact Team Sadler Realtors
Getting the price right from the start is one of the surest ways to sell your home for the most money. A Team Sadler Realtor would love to help you with the pricing of your home! To have a real person come to your home please complete the form below and receive a FREE NO-OBLIGATION home valuation. A Team Sadler agent will contact you within 24 hours or less. For immediate assistance please call (713) 628-4487.
In the mean time – for a quick automated estimation of your home you can get a FREE Market Snapshot emailed directly to you. The FREE Market Snapshot will only be a “guesstimate” as we like to call it and should only be used for estimation purposes. We recommend that as a homeowner you should always have a licensed real estate professional come directly to your property for an in-person home valuation.