What is your Charlottetown, Summerside, or PEI House worth?
Your house or property is worth what someone will pay for it. So how do you come up with an asking price that is realistic to begin with?
The first thing a home seller should be looking at is the SALES DATA (properties that sold), not the ACTIVE DATA (or active MLS listings found on Realtor.ca).
Anyone can list a house for any amount, and in Prince Edward Island over-priced listings, and unrealistic asking prices are of a surplus. I don’t know how many times a week I hear; “we don’t have to sell”. Please, if you don’t have to sell, don’t put your over-priced house on the market. It is making it very hard for genuine sellers to sell because it looks like everything is for sale.
The only thing the bank and appraisers are looking at is the sales data. However, I am now seeing a major problem.
Many times the sales data is old information.
If I want to sell my house today, I do not want it compared to houses that are similar to mine but took three to five years to sell, unless in fact that is the timeline I am wanting to take to sell my house. If you want to sell your house in 30, 60, or 90 days, look for houses that sold in those time frames. It would not be typical for a house to sell in 90 days based on a price established from a house that took five years to sell. I am finding that banks, real estate agents, and appraisers are sometimes not looking at DOM (days on market) to assess a realistic selling price based on how long you want your house on the market.
Furthermore, just don’t look at the current listing, look at all the other listings prior to that by running the street address, or PID number (property ID number).
How to price your house:
- Don’t get emotionally involved. It’s sales data, its numbers, these are facts. The agent is only presenting the data, and I know from experience that everyone thinks that their house is worth more then it actually is 99% of the time. Don’t get defensive. The agent is trying to help you, and save you potentially months or years of grief.
- Determine how long you want to wait for your house to sell.
- Use sales data based on that length of time. If you want to sell in 90 days; look at houses that are similar that sold in 90 days. If you have a 3-5 year plan, look at the 3-5 years sales data.
- Do not expect your house to sell in 90 days with 3-5 year sales data.
- Once a price is established, have your agent calculate the “absorption rates” at various price levels. Absorption rates tell us how many houses sell in that price range in that location in a period of time.
- Adjust the asking price based on how long you want to take to sell, and what the absorption rates are indicating. Different price ranges yield different DOM.
- When an offer arrives in the first few days, don’t be surprised, you did your research. Good job!
- If you don’t get inquiries, questions, showings, and offers, the price is too high and/or the marketing needs to be more substantial (people don’t know it is for sale).
Once you have established a decent asking price, the marketing begins:
- List your property on MLS and Audit the listing, and follow up with the agent when and if the listing expires.
- You have 6 seconds to sell people based on your pictures; make sure they are good ones (and don’t end up on Bad Agent Photos), and if they are not, hire a professional photographer (I have one available).
- The first 4 or 5 photos (depending on screen size) show up first on REALTOR.ca, make sure these are the best ones. Use not only exterior house photos first, but photos of the area, and local attractions (beaches, lighthouses, and wharfs are great).
- Use every last character of your 1000 character limit on REALTOR.ca and make sure your description is based on emotion and lifestyle, not features (see the article below). The description should also be SEO (search engine optimized) for Google and other search engines.
- Make sure there is a video for the “multimedia” link on REALTOR.ca. Do not allow the agent to send this link to a personal home page or Internet site. This is about selling your house not the agent! A good video with distribution will sell your property faster! (check out my videos here). I also have a professional videographer available for video production.
This article is not about marketing your PEI Real Estate for sale but pricing it, so I will cover more on marketing later. Just make sure your property is priced right, marketed properly, and advertised attractively and it will sell quicker!
Here is an example of a description based on emotion and lifestyle. It also has features that are search engine friendly (SEO/Google):
PEI Home for sale on a 7 acre treed property with walking trails and access to the fabulous Hunter River Community. All-season spring-fed stream ravine crosses entire property diagonally, bordering large lawn garden surrounded by trees. House custom built in 1995 with built-in garage, energy-efficient windows & insulation, internal vacuum cleaner and air exchanger systems. An extremely efficient home with additional energy-saving weather stripping and insulation. Metal roof in 2014. Unusual design of full single-level living quarters on second storey up from cathedral-ceiling staircase, incl. full-length open living-dining-kitchen area, parallel hallway w/ access to main bedroom, full bathroom, second bedroom. Downstairs are large library/reception area and large office. Bridges over stream lead to multiple walking trails.Wow! 24 HOUR A DAY OPEN HOUSE ON VIDEO! See YouTube Video attached. Click on Multimedia link to view. Be sure to subscribe!
The main MLS picture also has a feature to tell people that there is a video: (this works amazing and greatly improves the amount of views):
Many users of REALTOR.ca do not know or even see the Multimedia button on MLS.
Here is that article on selling your home on the Lifestyle not the features. Without the Lifestyle, it is just another house or a commodity:
Charlottetown (902)626-6912 | Summerside (902)888-8860
Toll Free 1-888-295-6863 | michaelshomes.com
Marketing your property Socially and Globally.