Want to sell your home for Top Dollar? Price it to end in 99
“Psychological pricing” is the phenomenon where items with prices ending in .99 sell more and faster than items with prices without the .99 tag. Zillow paired its data with studies that examined the effect of psychological pricing on consumers.
A study by Schindler and Kibarian examined retail sales and concluded that items with a tag that ended in .99 sold 8% more than items that did not. Zillow found that houses sold up to one week faster when priced ending in .99, eg. 429,900. You can use this strategy with your agent to get an edge on subconscious buyer appeal. Learn more about Zillow’s data studies in our list of best real estate books for 2016.
Here is a list of 5 most common requests that home buyers make to sellers to close the deal
#1 “lower the sale price”
#2 “make minor repairs”
#3 “pay for some/all buyer’s closing costs”
#4 “change the closing date, extend or shorten escrow period”
#5 “give money to buyers instead of making repairs to home”
(source: consumer housing trends report 2017)
Attention Home Sellers: an experienced Realtor can help you mitigate these requests in your favor
Similarly, sellers are often leery of pricing their home on the low end. But as counterintuitive as this seems, this strategy can often pay off big-time. Here’s why: Low-priced homes drum up tons of interest, which could result in a bidding war that could drive your home’s price past your wildest dreams.
5 Reasons To Sell Your Home Early In 2018
- Mortgage rates are historically low which is drawing buyers into the market before they go up
- Inventory is low and demand is high. The less homes on the market, the better for you. If you want top dollar, then competition from other home sellers will decrease your chances.
- Home prices are still increasing
- People have more money in their pocket, unemployment is on the decline
- Millennials are ready to commit. This age group is projected to account for 43% of home buyers in 2018 (source: realtor.com)
Ready to sell your home? Call today 323-717-2262
- Tidy up to make your house stand out
If you’re looking to sell quickly, you’re going to want to start cleaning, especially before those listing photos are taken
- Have your house staged
Want to go the extra mile beyond cleaning? Consider having your house staged, a way of decorating it so it’s more attractive to buyers
- Hire a professional photographer to take listing photos
A professional photographer has all the tools to capture the right lighting and make everything look brighter and inviting.” The pros also have wide-angle lenses to fit the entire room in the photo.
- Make your home available for showings
Once everything is set up, get ready to spend a lot of time away from your home so buyers and real estate agents can view the property comfortably— without you or your pets wandering around
- Find the right price
Staging and marketing your home are important components, but at the end of the day, the amount of money you’re asking buyers to pay could be what seals the deal
Consumer confidence definitely affects the Real Estate Market and currently the Consumer Confidence Index is at 125.9, up from 120.6 in September. Consumer confidence is at its highest level in 17 years which was boosted by the job market. Confidence remains high among consumers and their expectations suggest the economy will continue expanding at a solid pace for the remainder of the year which proves that selling during the holidays can be a great idea because economic conditions are unknown for 2018.
Your home’s value is likely higher than you think, If you are wondering what it’s worth, call me today @ 323-717-2262
(1) Holiday buyers are motivated buyers. Some of the reasons why they need to buy is because they’re relocating, some have received end of year job bonuses that they can apply to a down payment, some need to buy for tax benefits while others want to buy before interest rates go up (and they will go up)
(2) Your home looks great and buyers can be more emotional around this time. From the smell of cookies to a beautifully decorated tree can make a buyer see themselves living in your home. The more emotional a buyer gets about your home, the more they are likely to pay.
(3) During the holidays there will be less homes on the market which means you will have less competition. Its basically the law of supply and demand. Motivated home buyers outnumber the amount of homes for sale. This could mean MORE money for you!!!
If your buyers are getting a mortgage, they will also have to hire an appraiser. The appraiser will not only size up your home in person but check out the sale prices of comparable houses in your neighborhood (much as a Realtor would do for you). If the appraiser’s price matches the one your buyers are paying (or even if it’s higher), all is good.
But if the appraisal comes back lower than the asking price, it may become a problem. Typically, lenders won’t loan buyers anything above the appraisal amount. The buyers have two choices: Pay cash for the difference, or negotiate a lower sale price with you. If they choose the latter, you’ve got two choices, too: Accept the lower home price, or walk. To decide, ask yourself: How easy would it be to find a new buyer? If you were deluged with offers, it may be in your interests to move on, but keep in mind that you might run into the same problem with subsequent appraisals. So unless you’re confident your home is worth more and you’re willing to head back to square one, you may want to take a hit just to keep moving forward
All year, the overwhelming sentiment in the housing market has been frustration. Too few homes for sale drove prices sky high and led to fierce competition among buyers, especially at the entry level. So it was a little bit more than surprising to see a sudden burst of optimism among potential homebuyers in a monthly sentiment survey from Fannie Mae. Housing confidence rose in September to match the all-time high set in June. The main driver: a big jump in the share of current renters surveyed saying now is a good time to buy. In addition, the share of those respondents saying they believed home prices would go up in the next year dropped significantly. This, even though respondents continue to say that the main barrier to entry-level homeownership today is high prices. Consumer confidence is good for the time being, but when it shifts, it shifts rather fast and usually effects the real estate market. If you’ve been thinking of selling, the current conditions are in your favor, but won’t last forever
Consumer confidence can effect the real estate market and currently the Consumer Confidence Index is down .6 point which is nominal and consumers assessment of economic conditions remains favorable