If you want to sell your Las Vegas home, you have to price it right. Pricing is the principle factor in whether a property sells or languishes in the market place until the homeowner wises up and does his homework.
How important is price? Well, look at it this way, if you were the owner of a retail clothing store and were selling shirts for example at $15.95 each, and your competitor down the street was selling the identical same brand shirt for $13.95, how many shirts do you think you would sell compared to your competitor?
All things being equal, the same principle applies when you sell a residence. The homes that are similar to yours and are up for sale are your competitors. The price that you sell your home for – provided you are not in a financially difficult situation – must be within fair market value, low enough to attract potential buyers, and high enough to maintain an acceptable profit margin.
Setting an acceptable high/low selling price range for your Las Vegas home has to factor in comparable sales in the neighborhood, so it is a task that should be undertaken not only by the homeowner, but should have input from a seller’s agent, and an appraiser.
Despite the fact that an appraisal is based on comparative values, it is really only an opinion of the appraiser. Don’t forget that the appraiser primarily bases value on what has been sold, and does not incorporate market trends into the analysis. What it all boils down to is that the actual market value of a property is really only what a buyer is willing to pay, and the amount of which a seller agrees to sell! However, an appraiser’s report can be helpful is establishing pricing guidelines.
And, by the way, be sure that the appraiser is experienced and knowledgeable of YOUR neighborhood values, and is not someone brought in from out of town.
Same goes for your appointed Las Vegas real estate agent!
Figuring your pricing within a calculated range is a much more effective method than setting a firm price, and will give you a little more leeway in arriving at an acceptable advertised price.
When you have established the lowest acceptable selling price figure (which, of course you have not advertised) you are in a better position to evaluate offers below your advertised price that might at first seem unacceptable but might, in fact, be within the parameters you have established and may open the way for further negotiation.
Of course, it should go without saying that you should only begin calculating a selling price after your appraisal report and neighborhood comparable market value studies have been completed by your real estate agent.
Lastly, don’t forget to carefully examine actual sale prices of comparable homes that have already sold in your neighborhood.
Tony Sena is a Las Vegas Real Estate Broker/Salesperson and Designated Property Manager with North American Realty of Nevada. He currently oversees a team of 10 real estate agents and manages the Property Management Division. He can be reached at 702.376.0088.