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Pricing Your Crofton Home for Sale

Attention, Crofton home sellers:  It’s highly unlikely anyone will buy your home for more money than another nearby home with similar size and features.

And let’s face it – homes in Crofton are all about the same size and they vary little in their features, at least within each Crofton neighborhood.   

Price and terms are critical to any home sale, and they could determine whether your home sells at all.  In fact, when we talk about factors affecting your home sale that you DO control, pricing and terms top the list.

There’s no secret sauce or magic formula for accurately estimating the likely sale price for a Crofton home.  It’s a little bit art and a little bit science.


Home Pricing As An ART:
 

Some people are natural athletes or entertainers, yet they study, train, drill, rehearse, perform, and compete to optimize their talent – often for years.  Think of Tiger Woods, for example – No matter how many golf tournaments he wins, you’ll still find him on the practice range, day in and day out. 

Real estate pricing is like that, in a way.  I happen to be pretty good at pricing real estate, but any ability I have to accurately estimate the likely sale price of any property is based upon years of training and practice.  There is no substitute for experience, combined with a natural knack or talent for any skill – including home pricing.  


Home Pricing As A SCIENCE:

To accurately estimate the likely sale price and terms of real estate, it’s important to do a thorough analysis of the current and recent real estate market in the area of the property.  This is similar to gathering data like a researcher would in the quest for identifying the cause or cure for a health condition. 

Answers to these questions are important, for example, when pricing a home:

Why Are TERMS Important?

You may have wondered why I link “price” and “terms” as a single item on my list of factors you can control in the sale of your Crofton home.   I do so because they both are financial considerations that affect a home seller’s bottom line.  

Let me give you some examples: 

No condo/HOA fee for buyer’s first year.  If the condo or HOA fee is $120 per month, that would cost the home seller only $1,440, yet it would be very appealing to a home buyer faced with moving expenses or furniture purchases. 

Buyer closing cost help.  This is an alternative to dropping the price below market, and it could be the trigger which causes a well-qualified borrower who is short on cash to consider one property over another.

Mortgage interest-rate buydown.  Paying down the interest rate for a year (or two or three) is another strategy for a home seller to make one home stand out from the competition.  On a $250,000 Crofton condo, for example, a one year buy-down for 1% would cost a seller about $2,000, but save the buyer about $160 a month for one year.

Of course, pricing a property “right” in the first place is the best thing to do, but offering favorable terms are an alternative – or, in some cases, a compromise.  And they can help set apart one home from the competition when the housing inventory is high, as it is today.  (Just imagine if you did both – “right” price and special terms!)

I can’t say this too often:  Pricing and terms are a factor impacting the sale of your home which YOU, the home seller, can and must control if you expect success in today’s real estate market. 

Thinking of selling you Crofton-area home?  Let’s talk!   

Earlier posts in this series for Crofton home sellers:

Coming Monday, April 21:  Property Condition

 

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