Pricing a Bryan College Station Home in Today's Market
There is a lot of concern right now from College Station home Sellers on how to correctly price their properties. People are worried about the market given the current state of the economy and what they hear on the news. This area is not affected nearly much as the rest of the nation.
Since we are al college town and home to Texas A&M University, and because our paticular housing market prices have not been grossly inflated from their true value, our College Station market has remained strong.
The problems that are currently affecting homes selling in the area are due to the fact that 1) the current buyer can not purchase the home they want because they have to sell their out-of-area home first or 2) the current buyer can no longer get approved for the amount they wanted to spend on a home, (mostly because of new lender guidelines and increased interest rates) thus they are not upgrading to a nicer property, and hence no sale.
I have always believed that the way to price a home is in 5's and 0's and now is no exception. My experience tells me:
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That a number ending in 5 or 0 is usually the ending approval amount a lender gives to a buyer
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A number ending in 5 or 0 is usually in the buyer's mind set when whey are thinking about a number they are approved for and thus the range they look in when searching for a home. An example of this would be, "You are approved for up to 120,000," or "We are looking to purchase a home under 255,000″. This is also how most searches are done for homes for sale on the internet. Using basic random prices as examples: People rarely search for "a home under 143,000." They either search for "up t0 140,000 or up to 145,000." As anyone can relate to, it is our human nature to like the home that is just a tad more expensive, because that particualr property has just a few nicer things/upgrades about it. If you are need to sell your home in the next 30 to 60 days, and to save you an unnecessary house payment or 2 which could cost you more, it is important to keep you home priced so that your property is the nicest one in the price range the buyer is searching. Therefore, if your property is worth X dollars per square foot when you multiply that times Y square feet, and you come up with a number like $93,000 it is better to advertise the home at $94,900 or $95,000 because the potential buyer will be looking in that range anyway. While, if your end result is $92,000 it is probably better to price your home at $90,000 or $89,900. This way, you are not competing with homes that buyer can afford that are slightly nicer than your own.
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