HOW TO PRICE TO SELL AND STILL MAKE A PROFIT

The asking price you set for your home significantly affects whether you will profit in the sale, how much you will profit and how long your home will sit on the market. Your real estate agent’s knowledge of the overall market and what’s selling – or not selling – will be invaluable in helping you determine the price. The objective is to find a price that the market will bear but won’t leave money on the table. 

Here are some points to consider:

Time – Time is not on your side when it comes to real estate. Although many factors influence the outcome, time is perhaps the single biggest determinant of whether or not you see a larger profit and how much your profit will be. Studies show that the longer a house stays on the market, the less likely it is to sell for the original asking price. Therefore, if your goal is to make money (and that is the most important factor here), choose a price that will encourage buyer activity (read: fair market value) and offers.

Additionally, when speaking of time, home sales are on a seasonal curve. Stronger home sales are in the Winter and Spring beacuse many buyers want to be in their new home before the school year starts. In Florida, that means August.

Value vs. Price – Pricing your home to sell in a timely fashion requires some objectivity. Using a Realtor® removes emotion from the equation. It is important that you not confuse value with price – in other words, how much you value your home versus at what price buyers are willing to pay for it. 

Do not place too much emphasis on home improvements when calculating your price. Buyers may not share your taste and they are comparing your home to others that may also be upgraded.

Competition – How many homes are already on the market in your neighborhood? This is an additional factor to your home selling at the highest possible price in the least amount of time.