Right Price for Your Ottawa Home - What the Right Price is Not….
Posted on November 21, 2008
Filed Under Listing and Selling Your Home, Valerie Zinger
The single most important factor in selling your house is the price. At the right price, almost anything will sell.
What is the right price? Here are three ways NOT to set the price on your house:
1) Predetermined Return on Investment. For example, you decide that you must get a 20% ROI - the house you bought for $400,000 must go for $480,000 plus commission and other expenses. House prices may be dropping. What is the current economic situation and how are houses selling in your neighbourhood? If all the house prices are dropping, expect that your house price will drop as well. Buyers don’t care about your investment (initial investment, equity and return strategies). Houses sales are not made based upon a Seller’s ROI.
2) Return on Improvements. For example, you put on a new roof ($10,000) and installed 10 new windows ($10,000) so you want $20,000 above what other houses have been selling for in your neighbourhood. No one cares what you paid for maintenance and improvements. All that matters to the buyer is that the house is in good shape. House sales are not made based upon a Seller’s Return on Improvements.
3) Return plus coverage of your outstanding mortgage and the real estate fees. For example, you owe $100,000 on the house and the real estate fees are going to be $20,000 (5% of your $400,00 sale). You want your house to sell $120,000 above what you paid. No buyer cares what your mortgage is or how much you are paying in real estate commission. Everyone is paying off mortgages and paying commissions. House sales are not made on the basis of what a Seller owes.
You, the owner, can set any price you want for your home. Your agent, under fiduciary responsibilities, is required to obey your instructions and list the home at the price you instruct. However, you may never sell your house if the price is not what the market will pay. Listen to the advice of you realtor. Look at comparisons, what is on the market now and what has sold and at what price. This is an indication of the state of the market.
Your selling price should not be a “feeling”.
Photo credit: New Windows @ hhttp://www.flickr.com/photos/pinkmoose/250056085/
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Welcome
My name is Valerie Zinger. I am a Realtor in Ottawa. I look forward to listing your property or helping you find your home.
Phone: 613-723-5300 Click here to contact Valerie by Email at:
vzinger@royallepage.ca -
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