Before listing a home for sale, the most essential factor to consider is pricing the home correctly. How much is the house really worth? How can overpricing and underpricing be avoided? These are the basic questions that need to be answered for a home seller to be successful in reaching his goal. A home's price tag says it all. Avoid overpricing during pricing Calgary homes for sale. A home overpriced upon listing may lose the freshness of its appeal for the first 2 or 3 weeks of display. On the other hand, underpricing may not be a lot of concern. Homes priced below market value may often receive multiple offers, thus eventually pushing their prices upward.
Like any commodity, pricing Calgary homes for sale follows the law of supply and demand. Selling new homes is therefore partly an art and partly a science. Different agents vary in their ways of dealing with pricing of new homes for sale.
Comparing Apples to Apples in Calgary Real Estate
- In selling a home, consider listings and sales data that are comparable on several points. Take a look at similar homes from the same neighborhood for the past six (6) months in real estate for sale.
- Observe closely the dividing lines like major streets, railroads or freeways. It is not advisable to compare listings from opposite sides of the tracks. These may vary significantly - the value on desirability and perceptions differ from each side of the road.
- Include only homes within a distance of no further than ¼ mile to ½ mile from the house for sale. Exceptional cases are when only a few comps are found in the immediate vicinity or when the property for sale is classified as rural.
- Comparing areas in square footage, consider only homes with a difference of 10% in area size, whether larger or smaller than the subject home for sale.
- Consider homes of similar ages. Homes with great disparity in age, differ greatly in values. Compare only those houses for sale built on almost the same years.
Dealing with Sold Comps during pricing Calgary homes for sale
- Study the history of withdrawn or expired listings and the actual listing period. Determine those that were withdrawn and re-listed in the market, then add the additional days, to come up with actual period on market.
- Price reductions may be essential precedents. Carefully compare the original listing price with the final sales price. This determines the price reduction on homes for sale.
- Determine ratios by comparing final price of homes for sale with the actual sold price.
- Make price adjustments based on area size, upgrades, amenities and configurations of property for sale.
Observing Patterns on Listings
- Take a look at withdrawn and expired listings, and check on the common factors they have. This helps in avoiding the same status of homes for sale.
- Determine which brokerage had this expired listing - whether it is a company that normally sells every real estate listing or is a discount brokerage that does not spend on marketing property for sale.
- After knowing the patterns, create ways to avoid listings of homes for sale in Calgary AB from being expired.
Appraisals and Competition during pricing Calgary homes for sale
- To prepare for the appraisal of your home for sale, come up with a comparison of homes with similar square footage as the one you offer for sale. Normally appraisers don't deviate more than 25% of the home size in computations. On average, they stay within the 10% range in net square footage.
- Know your competition in the real estate homes market. Tour these homes and take note of the positive and negative qualities of these homes for sale. Replicate those positive ones in your own home for sale. Ask yourself if you prefer your home over those other homes, then adjust its price accordingly.
Market Conditions - Pricing Calgary Homes for Sale
- Analyze all data based on existing market conditions. During a buyer's market, where there's a load of inventory with few buyers, you may have to lower the price of your home for sale.
- During a seller's market, when there's low inventory with a lot of buyers, adding 10% more to the price from the last comparable house for sale would be wiser for a better profitability.
- Otherwise if there's a neutral market, you can safely set your initial price at par with the last comparable sale, then adjust accordingly with the market trend in buying a house.
After considering the factors, data and trends affecting pricing, your home is now ready for sale. For a reasonable pricing of homes for sale, it takes a keen comparison of similar homes for sale and taking stock of the present conditions in the real estate market.
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