There are many reasons why it’s important to price a home correctly in the Calgary real estate market. Without a question, price is the most important sales tool. The best opportunity to sell a home in Calgary at a reasonable price is during the first four weeks after it goes on the market. Buyers who have seen most available listings are waiting their dream home to come on the market. If your house is priced right, you will be in the best position to attract buyers that are able to pay the price you want.
If your home is underpriced, you will be bombarded by lookers and will get lots of offers. But at the costs of thousands to one of your biggest investments. On the other hand, if the house is overpriced, lookers will be scarce, with little chance of any actual offers. You may lower your price, but by then you’ll have already missed out on most interested buyers.
How to Set the Right Price
Setting the perfect price involves doing some research and getting some professional advice. The first steps you’ll want to take are measuring your home against other homes in the neighborhood that are up for sale or have been sold.
Next, determine what features set your home apart from the competition. Buyers are comparison shoppers. Highlight any recent renovations you’ve made done, or any unique features that people might be interested in.
The right price is usually around 5% of market value, and usually results in a fair-dollar sale in a couple of weeks.
The Risk of Overpricing
Why is overpricing risky? A price more than 5% above market value may create some unwanted results:
- Buyers may avoid visiting your home because they can find better deals elsewhere.
- Potential buyers who can’t afford your home won’t bother to look at all.
- An interested buyer who is willing to pay above market price might not be able to get finacning. Lenders may not approve a loan if the appraisal is lower than the contract price.
- Your unsold home may begin to go "stale" as the marketplace begins to assume something is wrong with your house.
- To make up for lost time, you might consider lowering the price to below competeing homes in order to make the sale.
Is it Smart to Underprice?
Setting your home below market value usually isn’t a great idea. This is mainly because you’ll be losing money. If time is more important that money, and you need a faster-than-average sale, you can consider setting a bargain price to attract the greatest number of buyers.
However, setting your price at market value will still attract interested buyers while getting you the best value. When you are ready to sell your home, get help from professionals in the market to decide on the optimum market value.
When you work with Greg Kennedy, you will get a comprehensive market analysis to deliver accurate, reliable information needed to sell your home. A market analysis will cover:
- Evaluations of your home's location, size of lot, age, and condition. This also includes bedrooms, bathrooms, total rooms, and extra features you might have.
- Analysis of your home's condition, including exterior and interior. I can help you understand possible repairs or touch-ups that will increase the value of your home.
- Develop an assessed value of your home, its previous sales prices, standard costs and local taxes.
- Home comparison with other local listings to be competitive in the neighbourhood.
To get the best price for your home, get the advantage that only Greg Kennedy can offer. Call (403) 836-3898 or contact me today!