Home Valuation (Pricing) Is A Crucial Decision For Selling Process, PART 3

11/24/2020

The Commonsense approach is the buyers' point of view. We looked into the personal and external biases that influence the pricing of homes. Such biases work against our common sense, which results in overpricing our homes. Common sense tells us to ask the most important question; what do home buyers care about. When I walk into a car dealership, I am careful to buy a car that meets my needs, and I care about. I may care for safety, fuel consumption, or luxury. I do not wish to buy the car that the dealership wants to sell. Now shopping for a car or home, the buyer's mentality does not change. We need to look at this from the buyer's point of view.

What is the next essential item in buyers' minds after location? Top agents agree that the home price right after the home location is the most critical item buyers care about. Layout, upgrades, and amenities are important, but the price must align with the buyer's budget. Online marketing works great for sellers' benefit, where their home is presented to everyone searching online instantly. However, websites provide sophisticated filtering tools for the users to narrow down the search to their needs. Setting a price range is one of them; buyers select their budget range carefully. Overpricing by a margin of even one percent, you could lose out on an entire pool of potential buyers.

It would help if you had a plan in place for selling your home. You may have heard a similar statement like this; we can always drop our price if we do not get buyer activity. It is true, however, a word of caution. There is still that concern to lose the freshness of the home's appeal after the first few weeks of showings. Naturally, interest will wane after a few weeks since new listings will come to the market. So it is vital to have a plan in place; you have a few weeks to decide the next step. This brings us to the importance of working with a professional. An experienced agent would have a plan in place and advise you ahead of time on the process and steps necessary if the house did not attract enough buyers.

Notes.
There are unique properties that are difficult to estimate the actual market value, even for the professionals. It can be because of a lack of comparables, unique location, unique architectural build. Testing the market with the best-estimated market value is a good idea; however, a plan should be in place to change the strategy if no buyer activity is present.

What are the tools and techniques to price your home? Here is the list of tools and techniques used by paraprofessionals, generally by relying on a combination of some of these tools, to estimate the market value. For the next part of this blog, I will focus on these in detail.

The list of tools and techniques to estimate the market value.

Online Tools for home valuation (Estimation)
Comparable current listings
Sold Comparable properties
The most recent expired, withdrawn, suspended listings
Sold pending closing
Square foot cost comparisons with some of the comparable
Market-dependent pricing
A Package deal

PART 4 >>>

Home Valuation (Pricing) Is A Crucial Decision For Selling Process, PART 4

Author

About the author: The above Real Estate article was provided by David Khosravi, a leader in his field in Willowdale, North York, Toronto. Reach out to David via email: drdavidkg@gmail.com or by phone: 416.990.2424
Are you thinking of selling your home? I will be glad to share my marketing strategies with you.

Willowdale Real Estate Blog