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Pat Esswein explains how you can get the most for your home without overpricing and driving buyers away.
Tags:How to Price Your Home for a Quick Sale,home pricing advice,home pricing tips,kiplinger,pricing your home,pricing your home for quick sale,selling your home,selling your home quickly
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Kevin McCormally: I’m Kevin McCormally of Kiplinger’s, I’m here with Pat Esswein the Housing Editor of Kiplinger’s Personal Finance Magazine to talk about how to price a home in today’s market. Pat one more thing we hear from a lot of real estate agencies that the home sellers refuse to face reality the fact that the market is slow down; the market has turn to round in some areas. What’s risk if a home seller sets the price to high? Pat Esswein: Well sellers who persist and thinking that they’ll get today what they’ve couldn’t gotten two or three years ago. Risks that no one will come to see there house we hear stories of open houses to which no one comes and they also run the risks that there home will become still on the market. The longer it’s on the market the less likely agents will bring there buyers to see it. Kevin McCormally: Okay so how the people set the price right? Pat Esswein: Will you have to work with your agent on this, what your agent needs to prefer for you is something called a competitive market analysis or a CMA for short. This involves looking at comparable properties that had either— that are currently listed for sale that are schedule to close very closely fairly shortly or that have close within the pass few months within that framework then you identify the price that’s right for your house. Kevin McCormally: How do you protect yourself? We can see agency suggest setting two lower prices. It’s been the agent wants to sell the houses as fast as possible move on to the next property. How do you protect yourself about against setting too low over price? Pat Esswein: Well I think that looking at the comparables that we just discuss is a safeguard against that but I think it’s important to remember, yes the agent wants to sell your home quickly but don’t you too. Kevin McCormally: Good point, now it’s for something about arranger pricing that’s coming in a bulk in some part of the country, what’s that all about? Pat Esswein: Well that’s called value range pricing and it’s the strategy or some say again that was created out in California. The idea is if your house is probably worth 250 your value range price at for 225 to 275. Kevin McCormally: But that were anybody owe form with the 225. Pat Esswein: Well that’s exactly what’s some agents on the East Cost say, no buyers is going to offer you more than the lowest end of the range so what is the point. Kevin McCormally: Okay Pat one final question, there are any kind of concession that sellers are likely to run into as they goes to negotiating process with potential buyers. Pat Esswein: Sure, one idea that’s come back into the style is the notion of sellers ping point for the buyers. What that means is that the seller’s pre phase interest on the buyer’s mortgage loan. Kevin McCormally: And where that’s get for both sides. Pat Esswein: Well, what the buyers really looking for is the lowest possible monthly payment so when the seller pre phase the points they get that lower monthly payment but it works for the seller too because they don’t have to cut the price on there house as much to get the same bank for back. Kevin McCormally: Okay thank you Pat.