Sioux Falls Real Estate

Calculating the market value of home requires careful consideration of a number of factors, as explained below.

An agent has no control over the market, only over the marketing plan.
Never select an agent based only on price.
Market trend is as important as recent sales history.

Overpricing in a rising market may be acceptable.
Overpricing in a falling market will have disastrous results

Definitions and terminology:

                  Cost is what was paid for the property, plus capital improvements.
                  Price is what the seller wants for the property.
                  Value is what a buyer is willing to pay.
                  Market Value is what a willing buyer and seller will agree upon.
                  Substitution: The value of an amenity is based upon what
                  it produces, not what it costs. Do not expect to recoup the original
                  cost of all the home’s features.

Market value has no bearing on cost. If the property was given to you, would it have no value? Of course it would have value, but only as much as a buyer would be willing to give under normal market conditions and exposure.

Reasons why most sellers overprice their home:

                  Over-improvement
                  Want bargaining room
                  Buying a higher-priced home
                  Lack of motivation
                  Original purchase price too high
                  Corporate buy-out
                  The need for more money
                  Lack of factual comparable sales

If you plan to adjust your price at the time of a sale, why not adjust the price now and attract serious buyers? This often places you in the favorable position of having more than one buyer interested in your property.

The greatest impression and most impact a property makes on buyers and agents is in the first few weeks of the listing. Therefore it should show the best, and be priced the best, during those weeks.

Serious buyers look in the price range which has been pre-determined by their down payment and monthly payment ability. Unless your property is priced correctly, the down payment and monthly payment requirements will not be competitive.

Benefits to proper pricing:

                  Faster sale
                  Better response from advertising calls
                  Less inconvenience
                  Attracts high offers
                  Exposure to more prospects
                  More money to sellers
                  Increased salesperson response
                  More effective showings

Main: Sellers What's My Home Worth? Thoughts On Pricing Your Home Make Your House Sell Faster Scott Rickel, Broker Associate