Price Your Home to Sell

In today’s market, it seems as if only those who are serious about selling should
put their homes on the market. The time a home is on the market before it is sold
has increased from roughly two weeks in 2004 to between eight and nine weeks
today. The unsold inventory index provided by the CALIFORNIA ASSOCIATION OF
REALTORS® (C.A.R.) also increased to 16.3 months in 2007, compared with 6.4
months in 2006. This means it would take 16.3 months to sell all the homes on the
market today at the current sales rate.

What does this mean for you as a seller? It means buyers have more choices and
time to evaluate their options. You may need to focus on flexibility, and educate yourself about your home’s value, the value of comparable homes in your neighborhood, and overall market activity where you live, when attempting to attract serious buyers and sell your home.

Here are some important steps to consider:

Price Your Home -

A home down the street from yours that is close in age and size may have sold in 2004 above its listing price, but this may be a very different market today. With homes staying on the market longer today before they are sold, the range between the initial listing price and the final selling price has increased to 4.3 percent, compared to zero percent in 2005. (source: C.A.R.) You’ll want to remain flexible, as well as knowledgeable about the market in your area, and price your home accordingly. A REALTOR® can provide you with a Competitive Market Analysis (CMA) for your home that will give you a current account of sales and listing activity in your area to help you determine a fair asking price. The CMA also may compare your home to those similar in age and size.

Market Your Home -

In today’s market, it may not be enough to simply put up a “for sale” sign in your front yard. Brochures, fliers, post cards, and other marketing tools are being widely used, as well as many online home-buying sites. A REALTOR® also can provide access to a multiple listing service; and use other online tools to help put your home in front of the largest number of buyers and their agents as possible.

Get Pre-Qualified -

If you are selling your home with the intention of buying a new one, you may want to get pre-approved for a mortgage loan before you put your home up for sale. This allows you to obtain a clear picture of your borrowing and buying power, ensures that you will be able to obtain financing to purchase your next home, and tells sellers you are a serious and qualified buyer.