In pricing your home to sell it should have no relationship to what you own what you need to buy another home with 20% down. It never ceases to amaze me when a seller says I need this much that why I priced it at x. Buyers don’t care about what you need! Buyers care about getting the best home that fits there need at the best price they can get it. The # 1 thing in pricing is you have to be a buyer not a seller! So you have to look at the market as a buyer. Actually you have to evaluate the market in regards to buyers and market placement. So you compare your home to all the similar home that have sold, like to like, as an appraiser would. You use the same style same size + or – 10% and you take the closest and most recent sale. Not the highest sales subtract and seller paid concessions and you have a rough appraisal value. That actually means very little in pricing your home! It will tell you if you have an appraisal problem because no lender will lend more than the appraisal and no buyer will pay more for a home then its worth in this market.

Now you have a starting point. You then that that price range + and – 20% and look at all home in that price in any area a buyer would look at it looking at your home. So that may be 2 or 3 areas. Like Sugar house the Avenues and the President Streets and ABC Streets, even the Canyon Rim areas. Now you have your competition and you have to look at the # of homes. You need to know the # that go under contract and the # that sell in 60 days divided by 2. That will tell you the kind of market you are in or the absorption rate. The facts are if the absorption rate or the time in month it takes to sell the entire inventory is over 4 months you have a buyer’s market and over 6 months you have a decreasing market. The higher the absorption rate the more drastically decreasing a market you have. If you in the 6 or higher range you need to be aggressive actually 5% below your current market value or you will lose money chasing a market. Lower then 6 you can be less aggressive like at market a little higher than the market says. What does the market say? It says you have to be one to the best 10 homes in your market because buyers will look at 10 to 15 homes. You have the look that part online, if you’re not on the MLs you have to be on the 10 or so major sites they get 15% of the buyers seeing your home. If you’re on the MLS they will all see your home? You must have a great virtual tour or e-curb appeal. You have to have great appeal and great price per sqft and you have to Wow in Price and Wow in virtual curb appeal or your pricing strategy means nothing. How do you get all this data it available from the MLS and you will need a Realtor to pull it for you? It will take about an hour and I do them on a personal webinar and we do it together. Happy pricing and if you’re not getting offers in 30 days other than, crazy people wanting you to owner finance them, you’re probably priced too high! How much? You don’t want to be chasing a decreasing market; the answer is in the data. If you don’t what to know the absorption rate you can still price off the competition. How to do that is use the search on SpottedHome.com it’s a great map search. Hint register and save your closest competition in your favorites and only your competition and you will get price updates on them and other new listing like them automatically to your emailed. Your daily update will be automatic and you’re up to date so you’ll know what going on and how you compete. If you want to be on the MLS so you can guarantee your exposure to all the buyers look at my pay for service listing MLS site. http://forsalebyownerhelper.com Happy Pricing!

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