Julington Creek Plantaion Setting Right Home Price 32259

How to Set the Right Price for Your Home in Julington Creek Plantation

     Without question, the single most important factor determining whether your home will sell (and if so, how quickly) is the selling price you establish. Unlike many other important factors affecting your home’s sale, the asking price you set is something under your complete control. You can set any price you desire. Of course, whether or not prospective home buyers will agree with your decision is another matter. Every home seller faces the same question, “What is the ideal price to set for my house?” Clearly, there are many ways to determine the asking price you set for your home. And you will be interested to know that except for one method, all others are incorrect. Using an inappropriate method can easily lead you astray. Here is a short list of some of the more common methods sellers use to establish their asking price.

Method A: I paid (fill in your amount) dollars for my home and by now it should be worth (fill in the amount your estimate) dollars. This is an Incorrect Method.

Method B: My neighbor sold his house for (fill in the amount) dollars last year. My home is nicer than his and I should be able to at least get (fill in the amount your estimate) dollars for mine. This is an Incorrect Method.

Method C: I owe a mortgage balance of (fill in the amount) dollars on my home. I also have a home equity loan I need to cover and I need to pay for my real estate agent’s commission. So I have to sell my home for at least (fill in the amount you need) dollars. This is an Incorrect Method.

Method D: I paid (fill in your amount) dollars for my home and I made several home improvements which have increased it’s value by (fill in the amount your estimate) dollars. This is an Incorrect Method.

Method E: I had a recent appraisal on my house and they said it was worth (fill in the amount) dollars. This is yet another Incorrect Method.

The Correct Method: So if all the above methods are incorrect, exactly what is the correct method for determining the asking price for your house? Simply stated, it is this: Your home’s true market value is determined by one and only one thing. How much would a qualified buyer pay be willing and able to pay for your house right now. All other pricing methods fail to get at the core issue. It doesn’t matter to buyers how much you paid for your home when you bought it. It doesn’t matter to buyers how much you’ve heard other houses in your neighborhood are selling for. It doesn’t matter to buyers how much you still owe on your house. It doesn’t matter to buyers how much money you need to clear from the sale. It doesn’t matter to buyers what an appraiser says your home is worth.   And it doesn’t matter to buyers how many improvements or upgrades you’ve made to the house. The only thing that ultimately matters is the price the market in your community will bear. And this price is evidenced by the figure a qualified buyer writes on an offer to purchase contract for your house. All other issues are side distractions and nothing more.

     In a strong seller’s market, homes can fetch extraordinary prices. These prices may be way out of line with common sense, but nonetheless buyers establish the prevailing market prices. (You need only look back to the 2003-2006 housing boom to see ample proof of this curious phenomenon at work.) In contrast, a weak seller’s market will see prices for these same homes suddenly plummet. Whether home prices spike upwards or free-fall downwards occurs independently of home improvements, appraisal estimates, last year’s prices, or your financial needs. It is a cold, hard fact that in a free market system, the only thing that ultimately determines your home’s selling price is how much a qualified buyer will pay.

     With this fact in mind, the home seller must establish an asking price that is based on careful research leading to an educated estimate. This educated guess must reflect the current market environment and take into account your home’s competitiveness relative to other homes on the market. Ideally, it should be an objective, rational decision. You don’t want to set price that is too high and thereby drive prospective home buyers to those competing homes. Similarly, you don’t want to set too low a price and needlessly forfeit thousands of dollars that could have been yours. You must strike a sensible balance.

     A tried and true way to reliably estimate the right price range for a home is through use of a carefully researched comparative market analysis. Experienced real estate professionals know how to develop a well-researched market analysis. This analysis is one of the most valuable tools you can have at your disposal when determining an asking price. Never attempt to put your home up for sale without a thorough comparative market analysis. Most real estate agents and brokerages will prepare one for you without cost or obligation. Given this, why in the world would you not want to take advantage of this important piece of information?

     Once you've reviewed the results of a sound comparative market analysis, you will have the information you need to make a decision about the price you want to set for your home. A word of caution is in order at this point. Some home owners decide to set a high price in order to “test the market” and see if they might get any takers. This is not usually a prudent strategy. Going with a more realistic initial selling price is a much smarter choice. Why is this? It is a fact that the most crucial time for any home being listed is the first 30 days. During this time, your home is fresh on the market and will generate the most intense interest from home buyers and their agents. If you are overpriced during this crucial time, you will push away prospective buyers. By the time you agree to a price reduction, the initial 30 days have elapsed and you’ve squandered your “new listing” advantage.

     To make matters worse, the longer a home sits on the market, the more skepticism it invites from prospective home buyers and their agents. In the back of their mind, they ask... “What’s wrong with this house and why is it not attracting a buyer?” Did you know the longer a home sits on the market the more probable it becomes that any offer made will come in low? This is because buyers and their agents realize that the longer a home sits on the market, the more anxious the seller is likely to become. Therefore, the buyer makes a low offer in the hope that a frustrated seller will accept their weak offer in desperation. This all too common occurrence underscores the importance of setting a realistic, competitive price at the start of the listing.

     Setting a high price up front to see if anyone bites may be a shortsighted strategy that ends up costing you time and money. Instead, take a close look at the facts identified in a well-researched comparative market analysis. Discuss this information with your real estate agent. Set a price that is realistic and competitive right at the beginning of the listing.

Julington Creek Plantation, Julington Creek, JPC, Homes Sale, Julington Creek Home Prices, Jacksonville FL 32259, Denise Bash, JCP, NW St Johns County, Riveroaks Plantation

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