Pricing homes to sell follows some simple principles. The goal is to sell at or under average market time for your community and not end up being a home that sits on the market because the price has been rejected.
Here is how your Barrington Home’s value is not determined.
- By what you paid for it.
- By the amount of cash you need to walk away with.
- By what you want to sell it for.
- By what any real estate broker or brokerage tells you it’s worth.
- By what an appraiser say’s it’s value is.
The buyer always determines the value!
The value of your home is determined by how much a Buyer is willing to pay in today’s market, by comparing your home to recently sold homes and to others currently on the market.
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Follow Our Pricing Homes to Sell Steps
Barrington homes can be a little more challenging to establish a fair market value for, due to the nature of our homes for the most part being semi-custom and more rural in nature than cookie cutter subdivisions like those found in cities like Palatine or Lake Zurich. That said there are basic guidelines we follow to come up with a price range, making adjustments as we need to fine tune a valuation range.
Step One. Finding comparable home sales.
- We’ll look for homes that have sold in your neighborhood first, nearby neighborhoods if needed-preferably within a mile radius, or in the same Barrington village as a third choice.
- We want to find homes in the same school district.
- Homes sold longer than 6 months ago should be ignored.
- Homes of same age with similar square footage, bedroom count, bathroom count and lot size are the best choices.
Once we have selected the best properties and because we know that no two homes are alike, we need to do conservative adjustments for things that will change value. This can be a little difficult if we’ve never been inside any of the comparable choices.
- Upgraded kitchens and bathrooms.
- Other recent upgrades.
- Difference in age.
- Exterior construction. i.e Masonry, Siding, Stucco. Partial or full. Asphalt or Shaker Tiled Roofs.
- More or less garages.
Step Three. Establishing Your Price Range.
- Consider the numbers for sales after making adjustments.
- Consider available competing properties.
- Look at current market activity, prices up, prices down, holiday season etc.
- Consider your personal circumstances and goals.
Pricing Correctly Reaps Rewards
Pricing your Barrington home correctly at the beginning will create excitement among buyers, will lead to more showings quickly and usually leads to a sale at a higher price than if priced incorrectly. Most buyers are looking at homes in several neighborhoods and you are in a competition. The internet provides buyers with a huge amount of resources and information and that knowledge will tell them if your home is over-priced. You’ll be rejected and they’ll move on, likely to buy another property, so don’t expect them to come back.
Price is a moving target and adjustments may need to be made. This was especially important in a declining market with long market times. However we appear to be moving in an upward trend now. That’s not a reason for ever increasing your asking price! If we priced right to start with you’ll get an offer acceptable to you.
We just need to stay ahead of the game to make sure you are always priced right. There are game changers that we have no control over and none of us ever know which way the market will turn.
Pricing Incorrectly Leads to Frustration
This is singly the most harmful factor to your ultimate sale. The initial activity just won’t be there, you’ll have moved to the rejection pile without even knowing it. No amount of staging or upgrades will help a home if it is priced outside of it’s league. Your home can potentially get labeled as a problem home due to it’s long shelf life. The longer you wait to adjust your price, the longer you’ll wait for an offer and when it does come, regardless of market conditions, it likely won’t be as good as it could have been, had you priced correctly from day one.
The Price Is Right!
If you are priced right it can still be rejected by a buyer or two. That usually means the house does not check off enough of their must have list, or they forget the goal is to buy a house and get too wrapped in the “I want a deal” scenario. Those buyers, well they are not right for you!
If you are in the market to sell your home, request an appointment and we can establish the right asking price for your property.