Select the right price range for your house
When someone decides that it’s time to buy a house, that person usually looks at houses that are within a particular price range.
That particular person doesn’t go out and look for a house that sells for $147,232, that person goes out and looks for a house that will be in the $140,000 to $155,000 price range.
The house buyers are already aware that the real estate market is “market priced”, not fixed priced as we have seen earlier. So…
When you put your house on the market, it must be priced in the right price range. This is crucial!
House price range example
Mr. Jones is looking for a house in the $145,000 to $155,000 price range.
What does he do? He goes in the neighborhood he wants to move into and looks at ALL the houses that are for sale in that price range.
If your house is for sale in that price range, not only did Mr. Jones see it, he also compared it to all the other houses in the same price range.
If your house is well priced (i.e. compares well to the competition), then you have a pretty good chance of selling it.
The wrong price range eliminates buyers
Your house should be in the $135,000 to $145,000 price range but you placed it in the $145,000 to $155,000 price range, then…
The buyers are comparing your house (a $140,000 value) with houses that are in a higher price range (a $150,000 average value).
Will you sell your house if it’s not in the good price range?
It’s not impossible, but as a rule… NO.
Because your house will be seen as poor value compared to the other houses in the same price range.
(Unless it is under priced, in which case it will sell in a flash.)
Did you ever notice some houses in your neighborhood that have been with for sale signs for a long time, and with different real estate signs changing all the time?
Well… Don’t look at those houses to decide on your price range. Those houses are in the wrong price range. In other words, they have been on the market for a long time because they were rejected by potential buyers. Their real potential buyers are in another price range.
And it can get worst…
More on this subject in our next article (november 3, 2005): How do most people price their houses?
Do you know how much of a house you can afford? Use a mortgage
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