Finding and setting your asking price too low or too high is dangerous unless there is a strategic game plan.
Under pricing: lower than fair market value (FMV), means you could miss out on thousands of dollars that some buyer would have paid. As for seller you do not need to accept even an offer has no condition with full asking price offer. And play game with Mutiple Offers if you will.
Over pricing: setting price so high that can scare away willing buyers and leave your home on the market for so long and that will make your competing home looking so much more attractive. So you will be exhausted and your personal life, privacy will be exposed to public too long. When you lower the price, people may assume you are under pressure to sell, and their offers go even further low. But if you plan to sell for 2 years that is find as well.
Improtance of early activities when it is a fresh new listing on MLS:
Your property has the best chance of selling within its first seven weeks on the market. And, studies indicate that the longer a property stays on the market, the less it will ultimately sell for. A property priced 10 % more than its market value is significantly less likely to sell within this window than a property priced close to its actual market value. About three-quarters of homes on the market today are 5-10 % overpriced. Sellers will usually over-price their homes by this margin if, either, they firmly believe the home is worth more than what the market indicates, or if they want to leave room for negotiation. Either way, if you choose to over-price your home by this amount, you run the risk of increasing the amount of time your home spends on the market, and decreasing the amount of money you’ll ultimately receive.
REALTORS® Frank Yoo has expertise calculating potential sold price of each home.
- Using the extensive background information available through the real estate Board’s MLS® system, comparing your home to a collection of similar homes that have recently been sold in your area.
- Gathered all the appeal from outside to in when there is a showing of most homes on MLS and exclusive listings.
- Tax assessment vs Fair Market Value in specific conditon home in certain sub area.
What to do next?
Signing the listing agreement officially gives your REALTOR® the green light to start selling your home. See what’s involved.
- “Listing Agreement” authorizes me to market and sell your home. It defines the relationship between you and me, including the limits of your REALTOR® authority to represent. Data feed analysis and sorting prep made by Frank will provide detailed information about your home which can be placed on a real estate Board’s MLS® System to help potential buyers find your home.
“Multiple Listing”, which allows them to put your home on a real estate Board’s MLS® System – a great tool to market your home and help find a buyer. You have the final say over the magic number “Asking Price” of your home, Frank will have very useful advice on what price will attract buyers. Learn more about choosing the right asking price in Determine your home’s asking price.
2. Real estate sales commission fee:
This could be a flat fee, say $3000-50,000 or a percentage of sold price. Find it in my separate website on my realtor commission part in the near future. Or phone me to set up a time to meet you. For instance, I have basic, premium, ultimate plan of service structure on my selling commission.
3. Legal information:
This includes the lot number, land surveys and the zoning code.
4. Completion date:
This date is you balance of purchae price finally will be transfered to the seller’s pocket. The proceed of money will come to your lawyer’ office first.
Now, you should decide whether you need to buy a new place to go first Or sell your place first before buying new place. I recommend you to do both at the same time. Then I would find the move-out date matched to your move-in date of your purchase of the contract I will write for you. Frank has expert skills overlaying or mathcing of this move-out date toward new place move-in date. Final money tranfer date (completion date) is usually 60 – 90 days away from the contract of purchase or sale agreed/accepted date.
5. How and when your home showing will be arranged with prospective buyers:
Frank will make the arrangements for your home showing appointments rules/instructions with you. Any specific instructions, such as “Please remove shoes” can also be noted. Showing time: Monday-Friday 1:30-2:30 and Weekend 2-4 only by appointment made or on first/second Open House date.
6. What exactly is included in the price?
Chattels are moveable items like washers and dryers, wall mounted TV and speakers, rug, microwaves and window blinds or even washroom mirrors. They’re not automatically included in the sale, but sellers will often include them to sweeten the deal.
Fixtures are permanent improvements to a property like central air conditioning, installed lighting and wall-to-wall carpeting. Fixtures are assumed to be included in the sale of the home unless you note otherwise. Maybe the dining room chandelier is family heirloom that you wish to take with you. The line between chattel and fixture can get blurry, so go over every item with REALTOR® Frank Yoo to make sure you have no regrets when it comes time to sell your home and everything that comes with it. And on moving date / possession day your buyer may hold back some money like ($500) in the contract for 5 days in case you the seller don’t clean it when they move out.
7. How you the buyer/seller will communicate with Frank Yoo?
Only between 9-11PM? or Anytime? And/or by no texting or texting only?
8. How am going to handle multiple offers for you my seller?
I need your clear instructions in ScheduleA.
9. How many competing sellers or buyers in the same market area? What is the demand/supply ratio? Do you know what it means by DOM or sales to active listings ratio 40/100? Out of 100 total listings for example 40 is sold within 10 days; it means very hot seller’s market, right? Sales/Sold over Active listings over 20% is called as a Seller’s Market.