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March 29, 2006

Learn About The Buyer Advantage Program

Learn the secrets of getting a sneak peak at homes before they hit the market, and how you can see every home including those that aren't currently listed for sale...

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March 20, 2006

Mid-Week Real Estate Update

Today’s show reveals what a real estate agent REALLY
does for you when you enlist their help to buy or
sell a home. Make sure to watch this very
important money making and money saving video.

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March 1, 2006

Keys to Setting the Perfect Pricing

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Keys to Setting the Perfect Pricing- by Jeff Hoffman

© Jeff Hoffman- All Rights reserved

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There’s an axiom in real estate that selling your home for top dollar revolves around the three “P’s”…Pricing, Promotion, and Presentation.

Of the three, pricing is the most confusing to the typical home seller.

I’ve put together for you a list of the 6 Keys to Perfect Pricing that any seller must be aware of, and follow, to be successful in selling their home on time, and for the most money possible. As an added bonus, I decided to add seven additional keys to perfect pricing, totaling thirteen in all, to make sure that every tip, trick and secret was made available to you to help you in your particular situation.

Here are the 13 Keys to Perfect Pricing…

Evaluate the Total Market. Do not rely solely upon neighborhood statistics. Consider supply and demand. Analyze data about the current and predicted market direction and factor this information into your pricing decision. Maybe you’re in a hot market where demand outstrips supply, and you can try for a higher price than you normally would if your time line will allow for the market to catch up to your above market asking price.

Compare “Apples to Apples.” If your property lacks something that’s important to many buyers—such as a garage—and other surrounding homes have a garage, this must be reflected in your price. Conversely, if your home has a feature that is substantially different than surrounding homes it could very well add to your price.

Let the Market Dictate the Price. Neither you nor your real estate professional should dictate price; the market does. Forget the subjective opinions and focus on substantiated objective factual data in arriving at your price.

What Terms Can You Offer? Price is often influenced by terms. If you can carry a second deed of trust or are willing to lease with an option to buy you can command more money for your home because you’ve created a market differentiation where previously there wasn’t one.

Remove Emotion From Your Pricing Decision. Perfect pricing is realized by factual data based upon market conditions which influence supply and demand. Your feelings and emotions about your home aren’t factors in the final price a buyer is willing to pay.

Don’t Price Your Home Based Upon Need. Don’t let the price of your new home dictate the list price of your current home. The amount of money you need has no relationship on the price you’ll sell your home for. A buyer doesn’t care that you are moving to a higher priced part of the country. Value is a not a function of what you have in your home, but what you get out of it.

Factor in Your Home’s Condition. If floors are scuffed and the place is cluttered, it will negatively affect pricing and your ability to sell. Buyer’s often dramatically discount price when they make offers on homes that need TLC.

Evaluate Recent Closed Sales Within the Last 60 Days. If there are few closings, look at the current pending sales in and around your neighborhood to determine the perfect range of value your home would be competitive within the market.

Consider Your Time Line. Assess the current market strength for they size and style of home you have before you set your asking price. Time is the biggest “lever” a seller has. Run out of it and there is only one solution, cutting your price.

Don’t Rely Upon a Refinance Appraisal to Set Your Price. The purpose of the appraisal often affects the outcome. Appraisals are typically done for many reasons including fire loss, divorce, insurance reassessment, taxation reassessment, replacement cost, and mortgage refinancing. None of these may relate directly to your need to sell. Your purpose is to establish market value not replacement value. Remember, market value is the value that would appeal to many people and result in a sale in a reasonable amount of time, value represents typically what one person might be willing to pay for a home, or in the case of an appraisal, what one person thinks is the value.

Don’t Choose Your Price Based Upon What You Paid For Your Home. There is no relationship between acquisition cost and current market value. If you received your home in an inheritance at no cost to you, you would certainly hope to sell it for current market value, not the price you paid which was zero. Conversely, if you paid $500,000 and today’s market reflects a price less than that, you still would sell your home for current market value, not what you paid for it.

Don’t Attempt to Build in Bargaining Room When You Set Your List Price. There’s a common belief amongst home sellers that all buyers will come in somewhat lower than the asking price. Therefore, they have to price their homes higher as sellers to work towards a negotiated price that is representative of market value. But in reality, bargaining room is often results in fewer showings and lower priced or no offers. This mentality often has the affect of causing a seller to overprice their home. Sellers don’t lose buyers as much in the negotiation phase as they do in the showing phase, because when you overprice your home, the buyers may not even see it, and if they don’t see it they won’t buy it.

Don’t Factor in Selling Costs When Setting Your List Price. Cost of sale has no bearing on market value. If you sold your home without paying real estate fees it adds profits to your net proceeds, just as paying fees would subtract from your net. In either case, what it costs to sell a home doesn’t add or subtract from it true market value, only the profits a seller realizes at closing.

Conclusion

Arriving at the perfect price for a home is both art and science. Follow the 13 Keys to Perfect Pricing and you’ll sell your home quicker, for top dollar, and without costly false starts and long delays.

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Jeff Hoffman is the President of Hoffman Realty Group, Inc. and has assisted thousands of sellers and buyers during his real estate career. He is the creator of a powerful home selling system designed for the home seller not the real estate agent. To learn more about this amazing program visit Smart Seller Listing Home Marketing System

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The Ultimate Guide to Worry-Free Home Selling

Want the inside secrets of selling your house or condo quickly? And for top dollar? Jeff Hoffman knows how to make that happen. For over 17 years Sacramento Valley home sellers have relied upon his tips for solid advice on all aspects of selling a home. Now '18 Notorious Home Selling Problems & How I Solved Them' gives you practical, step-by-step information, how to avoid the traps and pitfalls that so many home sellers routinely face when selling their homes. Check it out here.

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