Whether you’re saving a little extra on gifts or you’re buying airline tickets, we all like to know that we’re saving a little bit of money. Yet, when it comes to real estate the savings can come in the form of $1,000s so it’s important to know what really counts as a “good deal”.
Both buyers and sellers want to get good deals, but what counts as a good real estate deal? While some buyers and investors may be happy with a $5,000 decrease on an asking price, others may not be satisfied with anything less than a significant price cut.
You, as the seller, need to have a number in your head of how low you can and will go on a real estate deal. When pricing your home you need to give yourself some wiggle room. Pricing your property a bit higher will allow you the leeway to come off the price when a buyer asks. Because every buyer wants to feel like they’ve gotten a good deal, wiggle room is very important.
As a seller you want to find the buyer who understands the value of your home. There will be people whose idea of a good deal is well below your rock bottom price. Instead of focusing on them, focus on the buyers who see your home’s value and want to work with you on pricing. These are the people who see a good deal as an agreement between two parties rather than making the seller compromise.
The bottom line is that for a real estate deal to be a “good real estate deal” it must reflect the current market. This means that if properties are selling for an average of $548,000 in a particular neighborhood home listed in that neighborhood should be priced within the same ballpark. Prices will fluctuate depending on a home’s size and features, as is only natural, yet any homes listed within said neighborhood should be within the price range of the comparable surrounding market.
Without taking a good hard look at comparables before you list your home, you won’t have a clear idea as to what a good asking price is. It’s always important to educate yourself before you list any real estate. A home that does not measure up to the quality of comparables yet still has the same asking price will not be seen by potential buyers as a good deal.
A good deal is when a home is in the same age range, is in the same condition and was made of the same quality materials as surrounding homes with comparable prices.
It’s necessary to reiterate the importance of helping your buyer feel like they’ve gotten a good deal. In any case, giving a little here and there will make a world of difference. Price according to comparables while also giving yourself some wiggle room. This ensures that both parties can walk away happy.