Pricing is the Key to a Quicker Home Sale

What makes one home sale go quickly while other homes linger on the market for months? The answer is usually price. Determining a home's worth is a tough question these days. For many, it is difficult to reconcile what their home is worth today versus what it was valued at just two years ago. However, deciding on the right price from the beginning is one of the most crucial ingredients for an expedient home sale.

Popular wisdom says that the first 21 days of a listing are the most important, and interest begins to fall off after that time period.

This is why it is important for homeowners to do their homework and enlist the help of a qualified real estate agent. Pricing a home well from the start is better than having to reduce the price later. Not to mention, there is cost and frustration incurred when a home remains on the market month after month.

Begin by looking at comparable sales in the neighborhood, keeping in mind physical barriers that may affect price. For instance, proximity to busy streets or freeways, school district lines and local amenities can all impact the price of houses in the same neighborhood or even on the same street. Pay attention to how long houses in the neighborhood stayed on the market. Determine why some houses sold faster than others. Was it location? Was it the condition of the home? Most likely it was the price.

As a homeowner begins to prepare for selling, she should ask two or three qualified real estate agents to prepare a Comparative Market Analysis, known as a CMA. This will give the seller detailed information about the local real estate market, as well as outline marketing strategies and selling price recommendations.

According to a recent New York Times article, home prices in November dropped 18.2 percent from November 2007.

"This is not quite as bad as economists had expected but still the steepest plunge on record, according to the Standard & Poor's Case-Shiller Home Price Index."

Home prices across the nation have been tumbling because of foreclosure and forced sales. The Austin metropolitan area has been fortunate that home prices have not fallen to the degree they have in harder hit areas, such as California and Florida.

With the historically low mortgage interest rate, it is a good time to buy a home. However, the poor economy is causing most Americans to be cautious with their money. This means there are fewer buyers out there for more homes. Sellers have to be aggressive and willing to be realistic about what their home is worth in the current market.

A recent article from RISMedia noted that some home sellers are getting creative in this tough market. Frustrated sellers who have gone months without an offer are trying what is known as reverse purchase agreement, or unsolicited offers that get written by sellers for prospective buyers. "The approach is just one of myriad tactics sellers are using to attract buyers, who are now comfortably positioned in the driver's seat. Many buyers are apprehensive about making an offer in a market where prices continue to fall."

In these tough economic times, everybody is looking for a deal. That is why price is the most important component in a quick home sale.

About the Author: Dane Ki is active in the Austin real estate community. He built and grew a website about Austin real estate, which allows buyers to search homes in the Austin MLS by specific criteria. His site also provides updated statistics about central Austin homes.

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