A buyer's first impression of a property is directly related to how he/she perceives it to be priced in the marketplace. If the buyer does not feel that it is well priced in comparison with other available properties, this will negatively impact an otherwise good first impression. For this reason, it is important to price it correctly.
Defining a fair market value range
Fair market value is the highest price at which a willing buyer will buy and a willing seller will sell, i.e. fair market value. Many factors are considered in determining a fair value range:
- Location, size, condition and demand for this type of property
- Recently sold comparable properties
- Competition from comparable properties currently on the market
- Availability of financing
- Terms of the sale
Asking price
Once the fair market value has been determined, the best asking price can be determined. Your agent will discuss the pros and cons of the various pricing strategies to determine which is most appropriate.
Taking advantage of optimum exposure: the first weeks
Your property will get the most attention during its first two to three weeks of market exposure. Further, it has been shown that you will likely receive the highest price during this period. If your property is overpriced during the initial marketing period and a price reduction becomes necessary, it is unlikely that you will regain the level of activity experienced in this initial period.
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