Q. Why shouldn't I price my house a little high, since I can always drop the price later?
A. That's a strategy that sounds good–but, in fact, it's more likely to result in a lower selling price in the end. Here's why. During the first few weeks a house is on the market, it attracts the most interest. If a house is overpriced, it has to compete with houses at that higher price level, which are almost certainly larger or have newer or more luxurious features. The overpriced home is unlikely to attract an offer. Worse yet, during those first weeks, real estate agents will preview the house. If it's overpriced, they may not even bother to show it to their buyers. Eventually, the seller will have to drop the price–and may end up with an even lower price because buyers will wonder why the house has been on the market so long and may factor that into their offer. A Weichert Price Trend Analysis provides a unique method for arriving at a selling price that takes your local market situation into account. Q. What does the term "contingency" mean in a sales contract? A. Sales contracts typically contain several "contingency" clauses, or stipulations that apply to the sale. For example, with a mortgage contingency, if the buyer is unable to obtain financing within the specified time frame, neither the buyer nor the seller is required to complete the purchase. Among other common provisions in the "subject to" section are termite and other inspection issues and the purchaser's need to sell a current home first. Q. What is an escape clause? A. An escape clause, also known as a kickout or knockout clause, is a provision that allows the party to void the contract. For example, the seller may retain the right to look for a more favorable offer, with the original offeror retaining the right, if challenged, either to firm up the first sales contract (such as by waiving a contingency) or to void the contract. As another example, sellers might insist upon an escape clause in a contract that hinges on the buyers' selling their home. Q. What is my home worth? A. A pricing strategy that is sensitive to market trends is most likely to achieve the best result. Pricing a home for an optimal result is both science and art, and I apply considerable study and skill to this critical professional task. Determining an attractive initial listing price is especially important because homes almost always get the most attention in their first two weeks on the market. As a starting point, I thoroughly research comparable homes in your neighborhood and town and advise you of recent sale prices and how similar homes are priced now. I even review homes that didn't sell and were taken off the market. Location, property size/features, style, age, physical condition, special features, and recent enhancements are all considered in assessing your home's value. To analyze the data, Weichert has developed a unique tool called a Price Trend Analysis. It goes beyond the capabilities of a typical Comparative Market Analysis (CMA) by projecting local price trends. With our method, I can use the many market influences that affect price–including the supply of homes versus the demand, how the local economy is faring, and home appreciation rates–to help you determine the best asking price for your home. |
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Home Sellers' Frequently Asked Questions (FAQ) |