Price Your Home Right To Sell In California

(Selling a home pretty much anywhere can be a huge headache due to the stalling market, but selling a home in California is just plain exhausting.)

Even if you have a home straight out of a real estate magazine, it could still be hard to get it off your hands.

You may think you have thought of everything to get your home sold, but to no avail. You have had it professionally staged, cleaned from top to bottom and even threw in a few incentives.

But many homeowners who have done all of these things are forgetting about the most important aspect of selling a home in today’s market; the price.

A December 5, 2006 article by Diane Wedner of The Los Angeles Times, “Jump-start that sale,” explains the secret to selling a home in California is getting the right listing price.

“Savvy sellers take note: It's all about pricing, pricing, pricing. Not last year's. Last month's. That's the word from sellers and agents across Southern California facing the realities of this fall's buyer's market.”

“‘Pricing is critical,’ said Sean McLin, a Los Angeles-based ZipRealty Inc. agent. ‘Buyers start their search from there.’ It's not easy being a seller today, what with homes on the market seemingly everywhere. Should owners under price or stick with neighborhood comparables? How long should their homes be on the market before they consider lowering the price? What else can they do? Migraine, anyone?”

Most agents estimate that it now takes around 60 to 90 days to sell a home in today’s market. The first step to determining the right price for your home that you are about to list is to check what other comparable homes have sold for recently. This will give you a good idea of where to start.

“First, find out the prices (by square foot) of comparable neighborhood homes that have sold recently — not those listed for sale, which merely reflect owners' wishful thinking. Then compare the features on the just-sold homes, such as a new roof, fresh exterior paint and landscaping, said Moira Hughes, a Rodeo Realty agent in Westlake Village. If your house is lacking some of the same amenities, price it lower. Also, check how long the other homes sat on the market.”

The biggest problem with today’s sellers is that they’re expectations are not congruent with the current market. You are most likely not going to get the price for your home that it would have sold at last year – bottom line. That is why it is important for buyers to come up with a listing price that is close to what they are willing to accept.

“Forget about pricing your home higher with wiggle room for negotiating. The higher the price, the more likely the property will sit on the market gaining white-elephant status.”

Homeowners also need to know when it is time to lower the price; however painful acknowledging that fact may be.

Also, letting your home linger on the market for too long may give buyers the impression that something is wrong with it and will view it as “tainted.”

“Even if you're not in a hurry to sell, the sky's not the limit for a sales price. Many sellers are learning that lesson the hard way. When an overpriced home languishes, buyers start thinking something's wrong with it.”

Following these steps to pricing your home will hopefully help every buyer out there get their home sold quicker.

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