Dear Heather,

How do I know if I am listing my cottage at the right price for the market?

Selling My Cottage

Dear Selling My Cottage,

At the end of the day, your cottage is not worth what I say it is, or what you think it is worth. It is worth what someone is willing and able to pay for it, this is the reality of a free-market economy. As a real estate agent, I can guide you on a price by calculating the cost of a replacement of house and land, and by comparing it to other similar things that have sold recently. It is also prudent to compare it to properties that are similar, but sitting on the market because they are priced too high. I wouldn’t want your cottage to be one of these!

If you introduce your property to the market at too high a price, you will need to continually reduce the price until you hit that “magic” number, but by then buyers will begin wondering:

a) What is wrong with your house?

b) How much lower will you go?

In order to achieve a sale within six months or less, you really need to come on the market at no more than ten per cent over the recommended value. This gives you a little room for negotiation, but does not exclude buyers in your price range.

If you do introduce your property at too low a price, you run the risk of attracting “low ball” offers. Realise your agent is not your adversary, but is on your side; enlist his or her help in order to make an informed decision.

Here are a few guidelines to consider:

Ask your agent to pull the inventory list of active properties in your price range (slightly above and slightly below) and determine average days on market. How many listings are you competing with?

Determine if you are OK for your property to be on the market for longer than six months. If so, are you REALLY motivated to sell?

Ask your agent to create a comparable market analysis and seek their advice on a price and the reasons behind it. Even in distressed markets, properties that are priced at or slightly below that which buyers are ready, willing and able to pay, will receive multiple offers. This can result in price wars among competing buyers which can result in an offer slightly more than you would have originally listed it for.

Every house will sell if the price is right! Even in today’s market, if a property comes on that is priced correctly, very often it can be in contract within one to three months.

•Heather Chilvers is among Coldwell Banker Bermuda Realty’s leading sales representatives. She has been working in real estate for over 25 years. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332 1793. All questions will be treated in confidence.