How to Price Your Home
When it is time to sell your house, you want to get the best highest price possible. Some people think it is best to ask for a higher price than it is really worth and let the buyers make their best offer. THIS IS THE WRONG APPROACH.
Obviously, buyers are trying to find their dream home for the lowest price. They often have a range of prices they want to see and communicate that to their agent. If your list price is out of that range, they may never even see your house. If the 'real' price of your house is in their range, you have lost a potential buyer. Overpricing a home only loses you opportunity to expose it to potential buyers. At market value your home will gain exposure to more prospects who can afford the price.
In addition, the market will eventually tell you your have priced it too high because no offers will be coming in. However, you have lost valuable time and wasted a lot of energy in preparing the house for open houses and showings. It is much better to work with your agent to establish a reasonable price which is more likely to sell the house quickly.
THE BENEFITS OF SETTING A REASONABLE ASKING PRICE
• Faster Sale
When your home sells faster, you save carrying costs, mortgage payments and other ownership costs. A quicker sale creates less inconvenience for you. If you've moved before, you know the energy it takes to prepare for showings: keeping the home clean, making child care arrangements and altering your lifestyle. Proper pricing reduces these demands on you, by helping your home sell faster.
• Increased Salesperson response
When salespeople see a house come on the market at a reasonable price, they contact all of their potential buyers to let them know. Knowing that it is priced properly for its market, they expect it to sell soon and encourage their prospects to act quickly. Buyers respond to this with faster action and offers come in sooner. Conversely, if a house is overpriced, agents and buyers are not in a hurry to act.
• Higher and Cleaner Offers Attracted
Buyers fear they might lose out on a good home when it is priced right. They are less likely to make 'low ball offers' or offers with many contingencies. Better pricing attracts multiple offers, too! Indeed, in times of low inventory, multiple offers on a reasonably priced home sometimes generate offers higher than the asking price.
If you have questions or would like to discuss any of the above, please do not hesitate to contact me.