WHAT PRICE IS MY HOME?

Contrary to popular belief, when selling your home its value is determined by one thing only – What a qualified buyer is willing to pay.

Many sellers will argue their home has a replacement value, a capital improved value as displayed in the rates notices or what a real estate agent has appraised it for. But unless the real estate agent, the bank or the Council is willing to write you a cheque for the home, guess what? None of that matters.

A home without a buyer has no value in the marketplace. Sure, it may have a certain value to you, the seller, or it may have a value to your bank or the real estate agent, but none of these people are buyers.

So here is the secret to pricing your home to sell. Think like a buyer.

It’s not what you think the home is worth, but what a reasonable buyer will think your home is worth that will ultimately determine if your home will sell.

You may think if you left it to a buyer, they would pay as little as possible for your home. True, they would. But in the real world every buyer knows that you, the seller, will not sell your home for just any price. To purchase your home the buyer will have to make you an offer that is better than any other buyer and one that any realistic seller couldn’t refuse.

Some sellers fall into the trap of thinking they can hold out for an inflated price and eventually the market will catch up, but buyers are under no obligation to buy and no amount of marketing will motivate them to purchase an overpriced home. Why? Because they can buy one around the corner for less.

Successful sellers have learned to price their home accurately by thinking like a buyer. Most buyers start by looking online to get a general feel for prices. A typical internet empowered buyer will become knowledgeable about the market.

The only other important ingredient in the selling process is to have a real estate agent who has competent negotiation skills in order to get the maximum price the buyers are willing to pay.

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