Pricing Your Mammoth Lakes Property for Sale
Determining the current market value of your property in today's Mammoth Real Estate market is a key factor in getting your home sold quickly. The asking price is going to be one of the largest influences in how quickly your home sells and how long it sits on the market. Achieving the optimal pricing of your home is the result of objective research into recent comparable sales, an understanding of the similar active listings ("your competition") and the individual features, amenities and location that make your property unique.
The right price should:
- Attract buyers and generate property showings
- Allow you to earn the most money possible on the sale
- Help you sell as quickly as possible
As your Mammoth Real Estate agent I will prepare a customized and detailed Comparative Market Analysis that will show you the neighborhood values, recent sales of properties similar to yours and the current market value of your home. The simple fact is, price is the number one factor that most homebuyers use to determine which homes they want to view. It's important to remember that although the asking price is set by the agent and the seller, the value of the home is ultimately determined by the buyer. Try to avoid allowing your enthusiasm to impact your better judgment - overpricing is a common mistake that can cost you in the end.
The Importance of Proper Pricing:
- Create a sense of urgency for buyers
- A faster sale
- Increases realtor response
- Exposure to more buyers
- Generates more advertising/sign calls
- Attracts higher offers
- Means more money to seller
- Keeps "days on market" to a minimum
What is also important is how your home stacks up against the other properties currently listed for sale. Buyers will be comparing your homes with other homes currently for sale in
Common Reasons for Overpricing
- The amount owed on the existing mortgage
- Purchasing in higher-priced area
- Original purchase price too high
- Lack of factual data
- Bargaining room
- Move isn't necessary
- Assessed value
- Emotional attachment
- Opinion of family and neighbors
Dangers of Overpricing
- Most of the activity on your home will occur in the first few weeks. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical.
- Buyers who have already seen most of the available homes in their price range are waiting for the "right house" to come on the market. That's why if a house is priced right, it will sell quickly. The buyers are out there waiting for it.
- Don't start with a high price and the assumption that you can reduce it later. By the time you decide to lower the price, it may be too late, as interest will have already waned.
- A major cause for concern is appraisal problems; overpricing can lead to loan rejections and lost time.
- Even if your home is nicer than other homes in the same area, your house won't be picked for viewing if you set the price too high.
- Buyers and agents become aware of the long exposure period and often are hesitant to make an offer because they fear something is wrong with the property.
- Fewer potentially qualified buyers will respond.
- You might help sell similar homes that are priced lower.
- You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.
The Role of a Real Estate Agent in Pricing
- Provide you with a comparative market analysis (CMA), a comparison of the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMA is performed by comparing previously sold homes in the area, and currently active homes to know your competition.
- There is no "exact price" for real estate
- We don't tell you what we think your home is "worth".
- The market determines value…together we determine the price.
- You determine the price based on the factors you control:
- Marketing time
- Financing alternatives provided
- Exposure method
- Keep in touch with market trends and keep up to date with market activity of comparable homes.
- Estimate your net proceeds.
- Help to determine offering incentives.
An agent has NO control over the market, only the marketing plan and list price. Never select an agent based on the list price they promise.