SurreyBCRealEstate.ca

Setting the Right Selling Price

Setting the right selling price on a home is one of the most critical steps in the selling process. Setting the price too high will mean that you don't generate a lot of interest. Setting it too low will mean that you don't get as much money as you could have; it may also mean lower interest because you missed a key demographic.

Market value is based on the market.Quite simply, people don't care about how modern your bathroom is or the paradise that is your backyard. If your house is priced well above similar houses in your neighborhood of Surrey, you won't be able to sell. In order to find a price that is fair and that will generate interest, you will have to look at what similar homes in your neighborhood are selling for.

Don't compare apples to oranges. "Similar houses" is kind of generic, so let's try to define what it means. Houses that are similar are typically the same in age, number of rooms, and lot sizes. The layout of the kitchen, the layout of the rooms, the way the yard has been done may all be different, but those three factors are always constant. Don't compare the price of a three bedroom house with that of a four bedroom house; that one room will make a difference of thousands of dollars.

Why don't improvements matter that much? You may think that the fact that you have added a workshop or a swimming pool adds to what you can ask for your house, but this is not the case. When you are setting a sale price, you are trying to set a price for as wide a range of people as possible. Adding dollars on for improvements that you think are well worth it immediately narrows down interest in that price to people who think like you do. In the Surrey real estate market, the house with the most interest will fetch the highest price. It's important, therefore, to base the price on features that are commonly sought after by everyone.

There are lots of tools available that can help determine what price you should ask for when selling your home. Searching Internet databases for recent sales of homes in your neighborhood as well as listed property values for the Surrey area can be a good starting point for determining a sale price. The time of year will probably be a factor in the price of your home as well; the only reason to sell in fall or winter is that you need to get out quickly. Otherwise, wait until spring or summer when the market is typically hot and prices slightly higher.

In many ways, selling a home can be more stressful than buying a home. You want a good return on your investment, and the stakes are high - one mistake could end up costing you thousands of dollars. Market conditions in Surrey and neighborhood realities factor heavily in the final price you can expect, but there are some areas where sellers commonly make mistakes that are costly but preventable. Let's take a look at some of the most common mistake areas.

Pricing. Most of the time when we are talking about pricing mistakes in selling a home, we are addressing the chronic issue of over pricing. Over pricing is easy to understand; after all, real estate is a business transaction that calls for bargaining, and many people assume a potential buyer will negotiate. Unfortunately, putting a price on your house that is too high may mean that many of these buyers - who could well have negotiated - will pass your home by, thinking it's out of their range. It's often better to price your house a bit lower and attract a greater number of interested Surrey buyers.

While it does not happen quite as often, sometimes sellers make the mistake of pricing their houses too low, leading buyers to suspect there's something wrong with the house or the property.

Remember, with pricing, perception is everything. It's the first detail about your home that most buyers will seek, and they may make the decision not even to bother looking based on the asking price alone.

Cleaning. Sure, you know your house looks great when it's clean, and that the fence is going to be easy to replace. Keep in mind, though, that the potential buyers won't see that. A house with areas in obvious need of repair, or one that hasn't been thoroughly cleaned before a showing, sends a message to the prospective buyer that it is hard to keep up, or that it hasn't been well maintained over the years. Again, perception plays a big role, and it's important that you don't take the little things for granted. Make any necessary repairs before you start showing, and spruce up the place (vacuum, dust, do the dishes, make the beds, mow the lawn, sweep the driveway...) before potential buyers come through the door.

Showing. You might be desperate to sell your house, but don't disclose that attitude when it comes to potential buyers. Nothing will turn them off more than a hard sell tactic; a lot of the time, people will think that there must be some hidden problem with the house if the owner is being so pushy. The best tactic is to be elsewhere when realtors are scheduled to show your home. If you have to be there, stay out of the way; if questions are asked, answer them succinctly (but honestly) or defer to your agent.

These are the key areas where many people make mistakes when it comes to selling their houses in Surrey. Avoiding these common mistakes will mean the expeditious sale of your home at a price that will make you happy.

Know the difference between a buyer's market and a seller's market.


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Surrey BC Real Estate


Monday, December 11, 2017