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Pricing Your Louisville, KY Home to Sell

Pricing your Louisville, KY home is both an art and a science.  It takes experience, in-depth market knowledge, and full access to timely market information to accurately price a home.  There is no formula, only objective analysis of the current market.  You also have to weigh your personal motivation as a seller.  Are you willing to wait for a higher price?  Is the lending market going to affect your strategy?  How much equity do you have to work with to sell?

5 Pricing Tips for Selling Your Home

How is the market value of a home determined?  Market value is determined by the presence of a ready, willing, and able buyer.  More directly, you must have a buyer who is motivated to purchase, who has access to the capital necessary to make the purchase, and who is able to successfully make it through the closing process.

As a seller, you are somewhat at the mercy of the market in regards to pricing.  If the supply of homes increases and demand does not increase, then home values will be negatively affected.  If the supply of money available to motivated buyers is reduced, again home values will be negatively affected.  Of course, the opposite is true as well, so you must make realistic observations about the current market that affects your home when determining a pricing strategy.

I approach pricing as a balance between the seller's needs and what the market has to offer.  I thoroughly interview my clients to determine their goals, and then utilize my experience and market analysis to arrive at an accurate offering price.  In determining a price, we also investigate incentives to offer a buyer in an effort to entice an offer.  This could include offering to purchase a one-year home warranty, offering a decorating allowance, offering to help with closing costs, or some combination of those items.

I will completely honest with you as a seller and tell you I am not going to reveal all of my pricing strategy techniques and secrets on a public website because I think it undermines your negotiating position.  If you are interested in the reasoning, analysis, and a full explanation of what I do when helping a seller determine an offering price, contact me to schedule a private meeting.

The Right Home Price Should

  • Attract buyers
  • Allow you to earn the most money possible
  • Keep your time on the market reasonable
  • Be comparable to other properties in the area

The simple fact is, price is the major factor that most home buyers use to determine which homes they want to view that we can control (location is usually fixed).  Therefore, we must make every reasonable effort to be close to an acceptable market price for your home from the outset.

The Importance of Proper Home Pricing

  • Faster sale and less inconvenience
  • Exposure to more buyers
  • Increased response from buyer's Realtors®
  • Generates more advertising/sign calls
  • Attracts offers

What really matters is how your home stacks up against the others currently offered for sale and recently sold in your neighborhood.  Buyers will be comparing in the same manner we did to determine your offering price. Plus, the advent of the internet has placed a huge amount of control and power in the buyer's hands.  Some buyers are going to be as familiar and educated about the market as a Realtor®, and will quickly ignore a faulty offering price.

Common Reasons for Overpricing a Home

  • Over-improvement
  • Need
  • Purchasing in higher-priced area
  • Original purchase price too high
  • Lack of factual data
  • Bargaining room
  • Move isn't necessary
  • Assessed value
  • Emotional attachment
  • Opinion of family and neighbors

Dangers of Overpricing Your Home

  • Most of the activity on your home will occur in the first few weeks. Pricing a home properly and then creating immediate urgency in the minds of agents and buyers is critical.
  • Buyers who have seen most available homes in their price range are waiting for the "right house" to come on the market. That's why if a house is priced right, it will sell quickly. The buyers are there waiting for it.
  • Don't start with a high price and the assumption that you can reduce it later. By the time you decide to lower the price, it may be too late, as interest will have already waned.
  • A major cause for concern is appraisal problems; overpricing can lead to loan rejections and lost time.
  • Even if your home is nicer than other homes in the same area, your house won't be picked for viewing if you set the price too high.
  • Buyers and agents become aware of the long exposure period and often are hesitant to make an offer because they fear something is wrong with the property.
  • Attracting the wrong buyers.
  • Fewer potentially qualified buyers will respond.
  • You might help sell similar homes that are priced low.
  • You could lose money as a result of making extra mortgage payments while incurring taxes, insurance and unplanned maintenance costs.

The Role of a Real Estate Agent in Pricing

  • I will provide you with a comparative market analysis (CMA), a comparison of the prices of recently sold homes that are similar in terms of location, style, and amenities. A CMA is performed by comparing previously sold homes in the area, and currently active homes to know your competition.
  • There is no "exact price" for real estate
  • I don't tell you what I think your home is "worth".
  • The market determines value…together we determine the price.
  • You determine the price based on the factors you control:  Marketing time, Financing alternatives provided, Condition, Exposure method
  • Keep in touch with market trends and keep up to date with market activity of comparable homes.
  • Estimate your net proceeds.
  • Help to determine offering incentives.

As you can see, pricing involves several factors that must be carefully weighed before offering your home to the public. I will bring you all available market information to help you determine your offering price.  I will guide you through the information and help you find a balance that suits your needs.  We will work together as a team to sell your home for the most money possible, under the most favorable terms, in a reasonable amount of time.  I look forward to helping you with this exciting transaction!

Louisville Market Stats
Homes for Sale 2,480
New Properties Today 74
Averages
Days on Market 96
Avg List Price $274,644
Med List Price $185,000
MOM Chng 2.78%

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