Deciding how to price your home is perhaps the most important part of selling your home in a timely fashion. In previous posts we have explained that decisions must be made regarding how you will stage or repair/update your home. After those decisions are made you will need to price your home at the correct price to create interest for your property. In many parts of the country, interest in your property greatly reduces if your list price is more than 10% above the perceived market price. Other decisions to make will be the kind of buyer you will consider. A few types are:
Will you consider an offer from a buyer who needs to get a loan?
- are they pre-approved?
- does the offer have contingencies? (appraisal, conditional on another house sale, inspection period)
- is the buyer a “first-time” buyer or is the offer contingent on receiving a grant for the down payment?
What will a cash buyer expect?
- will you need to give a discount to a cash buyer to achieve a contract without too many contingencies?
- You can sell for top dollar and sometimes more.
- Interest can potentially be earned interest on your equity.
- Your home is the collateral for the amount that you finance. This by the way could be far more valuable than “non collateralized” asset that you may purchase with the cash that you may achieve from a different type of transaction.