Seller’s Tip: How To Price Your Non-Distressed Property when Competing with Foreclosures & Short Sales
Aloha! A client is selling his home to move to Hawaii and he was asking my advice on how to price his non-distressed property for sale when he has to compete with foreclosures and short sales that are typically listed at the lower end of the market.
My question to him was, do you have a list of comparable properties for the last year in your area? The current sales for the last 6 months at least will give you a general idea of what it might sell for – apples to apples, or like-kind.
Sell the Sizzle
Though you may be able to sell at market value, or higher than a foreclosure – it’s really about marketing your home to make it look like the cutest model home you’ve ever seen (not like a foreclosure).
Sometimes quality and attention to detail is what a buyer is looking for that might overlook a foreclosure home. When you put the pictures on MLS use a kitchen or gorgeous interior shot, or any part of the property that would be most desirable to a buyer. Sell the sizzle.
Since appraisals vary according to the reason they are being ordered, the buyer’s appraisal may come in higher than a seller’s appraisal, so the buyers can qualify the loan.
Not all transactions require an appraisal, especially for cash buyers who want the house no matter what…there are many possibilities that a seller could experience…I always tell sellers to “stay open” to the possibilities that each opportunity offers.
I would say, look at the Comps first (also called a CMA – Comparable Market Analysis), price yourself in the middle to mid-high range, and watch what kind of activity you get in the first few weeks on the market.
Also look at the Days on the Market (DOM) for each of the listings – this will tell you what’s overpriced, or if there is a stigma about the property (the reason why it’s been on the market for a long period).
Location, Views, and Weather
Because we live in Hawaii, location, views, and weather patterns are very important for most buyers. If you have any of these features, this is part of the sizzle that you will want to advertise about your property.
If you’d like more help with how to price your property for the current market, I would be happy to give you a Market Evaluation. I’ll also share my 20+ years of experience in the real estate industry that will help you understand the way the market works here.
Hope this information is helpful! Keep in touch anytime I can be of service~
Blessings & Aloha~
Claire K. Bajo, RS, SRES