5 STEPS TO FIND THE “SWEET SPOT” WHEN SELLING YOUR HOUSE
October 13, 2017 | Richard Sites
The “sweet spot” is that area where the most ROI is achieved or where you get the most “bang for your buck”. Baseball bats have a sweet spot and when you hit the ball right on it, the ball travels further than normal and there is almost no feeling in the batter’s hands at impact.
There is also a sweet spot when pricing your home. Let’s talk about it for a minute.
Recently, I posted on why the typical CMA could be very misleading when pricing your homes for three reasons. And since most activity occurs when a property first hits the market missing the sweet spot in the market might cost you money.
A friend of mine, with an advanced degree in statistics, once showed me that if your home does not sell in the average amount of time other homes like yours take to sell, you will end up lowering the price to a point that is actually below where you could have sold it in the beginning. This happens when you miss the sweet spot.
So how can you find the sweet spot? Here are 5 steps:
- Interview 6 agents and get their opinion of the selling price. Throw out any prices that are much higher or lower (the outliers), then average the remaining ones. Never, never hire an agent because they say their secret marketing plan will bring you a higher price than anyone else. That’s baloney.
- Look at ALL similar sales in the last 90 days in your community and then average the sale price per square foot of each of these sales. Then, multiply this by the square footage in your house. Nevermind all those special features that you think will raise the price.
- Look at ALL similar sales in the last 90 days of similar homes within a 5-10 mile radius. Then, do the square foot arithmetic listed in step #3. These homes are your competition.
- Visit any new homes for sale in your price range. Since this is your direct competition, see what builders are offering buyers.
- Finally, visit all open houses in your price range on a couple of Sundays. This will give you a chance to see the market as buyers see it.
If you will take these steps you will have a much greater chance of finding the pricing “sweet spot” and getting your house sold quickly.
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