Pricing Your Property
Pricing is one of the most important, and most difficult, decisions you have to make as a seller. Find out more how to price your property here:
Among other factors, pricing your property should reflect the location and condition of your home, current market conditions and comparable recent sales. Your agent will provide you with a Competitive Market Analysis that offers an opinion of value.
With regard to pricing, it is important to keep in mind that:
• All properties generate the most interest within the real estate community within their first 2 to 3 weeks on the market.
• The number of showings is greatest during this initial phase especially if the property is priced at a realistic market value.
• Starting too high and dropping the price later reduces the momentum that enthusiastic buyers and agents generate.
• It may even become necessary to adjust the price to compete with new, well-priced listings. The timing and extent of the adjustment are keys to the success of the sale.
• More often than not, buyers are setting the market price, not the sellers.
Realistic pricing generates the highest level of enthusiasm and interest among agents and buyers. The benefit is the sale of your property for the highest market price. The chart above shows how the right asking price can increase the demand for your property.
Steps In The Selling Process
Following these steps will ensure you get the best value for your property.
• Putting Your House on the MLS: When Brown Harris Stevens puts your house “live” on the Multiple Listing Service, it introduces the property to real estate professionals throughout the area and state.
• Broker Open House: Usually hosted by your agent and held during the week, this is an efficient and effective way to allow local real estate agents to tour your property.
• Public Open House: Hosted by your agent and held on the weekends, this allows potential customers in the market to buy a home the chance to tour your property.
• Home Showings: Showings are a necessary part of the selling process. It is best to make arrangements for yourself, others living there, and/or pets to not be in the house during showings to allow the buyer the best chance to envision themselves living there.
• The Offer: All offers by a potential buyer will be conveyed to you by your agent. Oftentimes, an offer will lead to some negotiation between the buyer and seller. Your agent will guide you through this process and spearhead the negotiation.
• The Purchase Agreement: Once the buyer and seller agree upon a price, a purchase agreement, which outlines the transactions terms and conditions, will be drawn up and sent to the lawyers of both parties.
• Earnest Money: Along with the purchase agreement, a buyer may put down earnest money, customarily in the amount of 1% of the sale price. However, this practice may vary depending on the area you are in so consult your agent or attorney for guidance. This check is sent to the seller’s attorney. If there is a mortgage contingency, you will need to apply for financing immediately.
• Home Inspection: After a selling price is agreed upon, the buyer will order a home inspection as soon as possible.
Among the items the inspector will assess are the roof, structure of the home, and the heating, air-conditioning, electrical and plumbing systems. After the inspection is complete, buyers have the chance to negotiate with the seller over who will pay for any necessary repairs. Depending on the outcome of the inspection, they may also ask for a concession on the selling price.
• Contract of Sale: Signed by both parties, and typically 10 percent of the purchase price is put down by the buyer and held in escrow by the seller’s or buyer’s attorney.
• Written Mortgage Commitment: Often the buyer will have a mortgage contingency to ensure they can get financing for the home. A mortgage contingency usually takes approximately 30 days to be resolved.
• The Bank Appraisal: The bank will send an appraiser to verify the value of the house.
• The Closing Date: Early on in the negotiations, a closing date will be agreed upon by the sellers and buyers. While the closing date can vary, it often takes place between 45 and 60 days after an accepted offer.
• The Walk Through: On the day of the closing, the buyers will walk through the house with their agent to make sure there have been no previously unforeseeable changes since the inspection and bank appraisal. The final walk through gives home buyers an opportunity to inspect a property before closing on the sale of a property. A house is expected to be “broom clean” at closing time, and your agent would be happy to advise you on this.
