This post was contributed by a community member. The views expressed here are the author's own.

Community Corner

Price Your Home Right and Get it Sold

Pricing your home correctly in this market could mean a shorter time on the market and thousands more dollars in your pocket.

The Price is Right and your home is SOLD. If you have an experienced agent who has sold many homes in your area, your home is priced for the market and it is in tip top shape with the latest upgrades then you should expect a sale in about 25 days.

No, I didn’t just pull that number out of thin air. That was the median time on market for a home priced right for the market that sold in the first 6 months of 2011.

To shed light on the question above, I must point out that in the second quarter of 2011 only 18 percent of the homes on the market were priced for the market. That means 80 percent of the homes you see sitting on the market for months on end were or are overpriced.

One may argue that a home has not sold because the right buyer has not come along. The truth is that if the home is priced correctly the buyer will come along. Some would argue that the condition was not good. If the condition is not good then it still comes back to price. The home’s price must be in line with the condition.

With a foreclosure, one expects to buy the home below market. In fact, the average price for a foreclosure home in metro Atlanta is approximately 40 percent below market price. Guess why! It is not because the lender wants to give you a great deal. It is because on average the home is worth 40 percent less due to condition.

Find out what's happening in Peachtree Cornerswith free, real-time updates from Patch.

This low price pulls in investors, flippers and traditional home buyers. This is not a game for the faint at heart. With the market falling as it has for the past five years, the house 40 percent below market at closing may very well have dropped another 25 percent in value before one is able to complete repairs in some areas of Metro Atlanta.

This drop in value is the reason that many homes in Metro Atlanta are “upside down” or the homeowner owes more in principle than the home is currently worth. People who are in this situation may be forced to do a short sale if they are unable to come up with the cash difference when they sell their home.

Pricing a home in a declining market means pricing competitively. In order to sell quickly, your price has to be a compelling price. A compelling price means you are slightly below market and the buyer feels compelled to make an offer and has no need to look at other homes.

Factor in the absorption rate and the price of homes presently on the market in the community. This results in a better price, and a sale in a shorter amount of time. Also refer to the chart showing the difference in price of an over-priced home and one that is correctly priced for the market. You must consider “days on the market” for an overpriced home.

OPEN HOUSE:

Find out what's happening in Peachtree Cornerswith free, real-time updates from Patch.

The home located at 5922 Spalding Park Place will have an Open House this Sunday 2 - 5 October 9th.

NEW LISTING:

These are not scheduled for open house, but show by appointment.

  • 2728 Old Lyme Court
  • 6315 Neely Meadows Drive

Editor's note: For information on these new listings or for other real estate questions, contact Nancy Minor at in Peachtree Corners.

We’ve removed the ability to reply as we work to make improvements. Learn more here

The views expressed in this post are the author's own. Want to post on Patch?

More from Peachtree Corners