Not all places have a lot of homes that recently were sold in short times or by banks. If your area has many of these types of sales, you have a problem. How can you compete? Pricing is the biggest concern in this situation. The value of your home will be connected with listings of the bank owned homes. How can you compete when the home you are trying to sell was bought when the value was inflated, and now has equity?
Short sales and foreclosures will make pricing your greatest tool.
Finding the perfect price for a home surrounded by foreclosures and short sales takes science, emotions, and cold hard facts. The price of the home needs to be looked at from the view point of the buyer as well as the seller. Even if you know the price should be higher, the buyer and yourself need to agree. The prospective buyer won’t bite if you don’t agree.
The following three things should be kept in mind. Is your house worth more than the price is needs to sell for right now? How can you make an appraiser value your home more than the surrounding ones? Why will a buyer want your home over a distressed home sale?
Unfortunately appraisers do not give any significant allowances for upgrades that you have put into your home. When homes are priced so low the buyer may choose a home that needs upgrades over yours because even when they put in the improvements needed the price is still better. The almost sure sale happens when your home has the higher value with the upgrades and is still priced within the same range as the distressed homes. A buyer will not pay more for any home than what they can get a distress home for plus improvements. That will be their highest price.
The perfect selling price:
You can’t compare apples to oranges. All the homes that have sold in three months should be considered. The homes that sell should also be in comparable neighborhoods. Location is always a factor. You must also consider the size of homes. The home’s age will also make a difference. There is always the possibility that an extremely well priced home can create a bidding war resulting in a final higher sale price.