Selling May 30, 2014

Three Approaches To Pricing Your Home

Drop, Fix, or Mix.

When it comes to pricing, your home’s condition is one of the major factors you will need to consider. When I speak with clients, I use the slogan Drop, Fix, or Mix. What this means is that unless your home is the picture of perfection, you will need to either drop your price, fix the home to become perfection, or mix the two by dropping the price a little as well as fixing some of the issues too.

Fix: If you want top dollar for your home, it needs to look like a model home or be in such a desirable area that buyers will do anything to get your home. Assuming that your home is not in one of those areas, you’ll need to go to extreme lengths in preparing your home. What do I mean by a “model home”? Go visit a community where a production builder has a home near the entrance that is used as a show room. You’ll notice the fresh paint, beautiful floors, amazing kitchens and baths, and exquisite furnishings. How does that compare to your home? In addition to those things, the model home will have newer mechanicals, roof, and windows. This is how builders get top dollar for their homes. Everything is complete and the home as I like to say, “sizzles.” The home is move-in ready and has left little to the imagination.

Does your home have to have everything new to look like a model? Of course not many preexisting homes have everything, but by freshening up paint, replacing flooring, and updating all your hardware and fixtures you’ll be one step closer. Not only will this put you in a position to get higher price but it will help you sell faster. Of course, the term “faster” is relative, so it may mean that you sell in less than a week or it may mean that you sell in 60 days as compared to the 100 days it takes for your neighbors to sell.

Drop: However, investing in your home can be expensive in both money and time. If you don’t have a lot of one or either, it may benefit you to merely adjust your price accordingly. If the condition is such you may just decide that it is easier and maybe more cost effective to put the home on the market “as-is” and take what you can get. There is a buyer for every home, but you have to be aware that the worse your home’s condition, the lower the price.

Mix: Probably the most popular option in pricing is to do a hybrid of fixing and dropping. If this is the case, you will want to focus on the places in your home that will return the most value as well as grab the attention of the buyer.

I’ve previously written about selling the sizzle and not the steak, which means that buyers are much more willing to make offers on houses with newer paint, carpet, hardwoods, counter tops, and the latest fixtures. While the steak parts are important (mechanicals, roof, windows, etc.) are important, they are usually issues that are addressed after and offer has been accepted. Knowing this, a seller needs to focus on bring kitchens and baths up to date, adding curb appeal, and cleaning with a white glove touch.

Not sure which way to go? Give us a call at The Lugar Team at 317-572-5033 and we’ll come to your home for a free consultation and give you an honest answer about what you need to do to prepare your home for sale. And we’ll help you prioritize your to-do list so you address what is most important first. Before you know it, you’ll have your house ready to sell at the right price and taking steps toward life’s next adventure.